Felsted School reassures parents on VAT: ‘ We remain committed to try to shoulder as much of this additional cost as we can’

A private school in Uttlesford insists it “shoulder as much” of the additional costs of new Government measures as possible.

Labour Chancellor Rachel Reeves has confirmed that the standard 20% VAT rate will be added to pupils’ fees from January 1 next year.

Bosses at Felsted School say “very little note has been taken of very real concerns raised” about the Budget measure.

Its current autumn term fees range from £3,925 for a reception, Year 1 or 2 day pupil in the prep school to £15,585 for a senior school full-boarder.

In a letter to parents, Felsted School said: “We are now continuing our work, with expert advice, as to exactly what this means for us as a school.

“There will be an element of VAT that we can reclaim (including on capital expenditure), and we are working hard to ensure that we are fully prepared for this and that we fully understand the implications and reach of the policy.

“In the coming fortnight, there are two important meetings of governors. These meetings will look at the short-term impact of the policy and how it will affect the school for the remainder of this academic year, but will also be looking at the longer-term strategy in response to this news.

“As well as the application of VAT, independent schools that are also charities, as Felsted is, will lose business rates relief in April 2025.

“Like other employers, we will also have to manage the additional National Insurance costs.

“Despite these additional outgoings, we remain committed to working with parents to try to shoulder as much of this additional cost as we can and to ensure that your children can continue to enjoy the excellent education that Felsted will continue to provide.”

The Independent Schools Council, an organisation for seven associations representing independent schools, will be working with human rights barrister Lord Pannick KC, alongside Paul Luckhurst from Blackstone Chambers and the legal firm Kingsley Napley to challenge the Government.

Legal proceedings will begin shortly. The case will centre around breaches of the European Convention on Human Rights (ECHR) and the Human Rights Act 1998.

Julie Robinson, chief executive of the council, said: “This is a decision that has not been taken lightly and has been under consideration for many months.

“At all points throughout this debate, our focus has been on the children in our schools who would be negatively impacted by this policy.

“This focus remains and we will be defending the rights of families who have chosen independent education, but who may no longer be able to do so as a direct result of an unprecedented education tax.”