Cathedral schools fear going bust under Labour plans to curb tax breaks
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Cathedral schools fear that they will “go bust” under Labour’s fee changes, MPs have heard.
The Labour Party is planning to curb tax breaks on the independent sector.
As a result, Conservative MPs said any closure of such schools could result in a lack of young choristers for cathedrals.
Labour’s policy for England proposes charging 20 per cent VAT on fees and ending the business rates relief from which private schools benefit.
However, the Opposition did back down last year on its pledge to strip private schools of their charitable status.
Raising concerns about Labour’s plans in the House of Commons, Sir Michael Fabricant, the Conservative MP for Lichfield said: “Cathedral schools, like Lichfield Cathedral School, play an important part in providing young choristers for cathedrals.
“But they are very, very concerned that if they have to charge in the future 20 per cent on their fees, plus possibly losing their charitable status, then they feel that they may go bust, they may no longer be viable.
“What assessment has the commissioners made about the effects of such a change?”
In response, Andrew Selous, the Conservative MP for South West Bedfordshire, who speaks on behalf of the Church of England in the Commons, replied: “There is a concern that cathedral schools may not be able to afford to pay business rates.
“And if the payment of business rates and the addition of VAT on fees caused choir schools to close, this would be an issue for a number of cathedrals.”
Julie Robinson, the chief executive of the Independent Schools Council, said: “Cathedral schools are vitally important to their communities and provide choice to local families, who often sacrifice in order to send children to a school that aligns with their faith.
“The majority of independent schools, including cathedral schools, have thin operating margins and cannot absorb the effects of VAT and the loss of business rates if they are to remain viable. But nor should they have to ask hardworking families to bear the brunt of a legal requirement to place VAT on fees.
“We would welcome the chance to work with Labour to build on the excellent work being done by cathedral schools across the UK as part of our shared goal of improving education for all young people, instead of parents being punished by an unprecedented tax on school choice.”
