Number of Private Schools Going Bust Doubles After VAT Raid
The number of schools that collapsed into administration doubled in the first half of the year, which experts said was down to the government subjecting private schools to VAT from January. The Times has more.
Private sector figures released on Tuesday showed that the number of schools falling into administration rose to 12 between January and July, double the amount in the same period last year.
In July alone there were four companies within the education sector that tipped into administration, according to Kroll, a risk advisory firm. Kroll also said that the number of administrations in the education sector could be nearly 50% higher this year compared with 2024.
The data comes after the Government subjected private schools to the 20% VAT rate from January this year. The sector’s charitable status was also abolished, meaning that from April it was unable to claim relief on business rates, a type of tax private sector firms pay according to the size of premises.
Administrations are a formal insolvency process intended to save businesses and maximise returns for lenders. Administrations are typically used by larger companies where a restructure is needed to save parts or all of the business and are viewed as a barometer on the health of the economy.
Separate official data released by the Insolvency Services on Tuesday showed that the number of companies that became insolvent — when the value of a company’s assets is lower than the value of its debts — rose to 2,081 in July from 2,053 in the previous month.
Benjamin Wiles, managing director at Kroll, said: “While there continues to be economic uncertainty, weak business confidence and unwelcome speculation on further taxes, we are not seeing a surge in company insolvencies.
“Naturally what is more interesting is the picture within certain sectors. We saw a jump in administrations among education and schools, most likely as a result of the government’s VAT increase that took effect at the beginning of the year.”
Worth reading in full.
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Soon the only ‘schools’ left will be madrassas and ‘public schooling’ ie indoctrination centres. Time to home-school.
Even so, home schooling is not immune from Local Authority oversight.
Obviously.
That was the point of the policy.
The homogenisation of the masses.
It is clear to me that in 500 years, after the civil war finishes, when the history of these years is written they’ll have nothing to go on, all documentation is in electronic format, this will be seen, quite rightly as a literal dark age.
Curious.
Exactly.
It was very clear from the start that taxing private education was going to bring in negligible revenue, if any at all.
But that was not the point.
The leftist utopia is a society where everyone is poor, enslaved, stupefied, totally dependent on the state and therefore totally controlled.
See: 1984, North Korea and Stalinist Russia.
The left’s actions are driven by two fundamental (demonic) forces: envy and resentment.
When government policy is to close down the country’s North Sea Oil Industry, yet we can buy oil from Norway, perhaps, even from the same oil field, something is amiss.
If you are waging class war the reduction in non-state schools is a good thing. By the same token the break up of family farms over inheritance tax is a good thing.
Now I happen to believe that these are bad things. With all political bad things I ask myself ‘who benefits’? I doubt that the extension of political purity is enough – I wonder if there are favoured businesses around who will hoover up the ‘spare’ resources, and what political ‘fees’ they will pay.
Vote for fake socialists, get crony capitalism
No such thing as crony capitalism. When the State and private business interests collude for mutual benefit, it is Fascism.
The difference between Socialism and Fascism is under the former the State owns all economic activity directly – business, labour input – under the latter, business and labour remain in the private sector but must operate as directed by the State to serve the interests of the State.
Socialism and Fascism are basically the same, a case of you say tomayto, I say tomahto.
Family businesses are going to be broken up thanks to Blubbing Rachel.
Do people pay VAT on private healthcare bills? If not, I assume that will be another target in the future. Get everyone dependent on the NHS. It’s only a matter of time before they launch a state-owned supermarket chain.
Private hospitals used to be VAT exempt.
Everyone is dependent on the NHS because it has an uncontestable monopoly – no enterprise can compete for the money we are forced to pay, to be used to buy a service from them. (Like the BBC’s monopoly.)
Having other enterprises in the market place does not mean there is no monopoly if consumers cannot use the money they have to pay to the State Leviathan to pay somebody else.
Since most people cannot afford to pay twice for healthcare, the market volume is too small for private medical care companies to offer the same comprehensive service as the NHS.
Solution: take away the NHS monopoly over our money so we can choose whether to pay it to the NHS or some other enterprise.
If you suspect you may need many years of care, in your old age, you would need to have saved in excess of the IHT threshold.
It’s illogical, illuminating, and frightening.
As was foretold. So now a surge of kids into State schools, all that plunder which allegedly would be spent to improve State schools (or build more houses or something…) won’t be available as: a) the amount of available plunder has decreased; b) the cost of those State schools just went up.
A Government that can’t put a foot right.
Every time Reeves increases a tax she seems surprised that she doesn’t rake in as much as she expected. Now, either she’s too stupid to learn from past experience (i.e. killing the golden goose), or she’s ideologically driven by the desire to eradicate private capital, private investment and individual choice.
I think she is stupid, but motivated mostly by spite and 6th form socialist workers party ideology.
A loathsome individual.
Yes, she is very stupid and certainly looks it everytime she talks like a dalek while wearing yet another hard hat because she thinks it impresses people and says ‘Look I am creating growth’. Her growth is negative of course and just to show how good she is at this, due to business tax on property, 90% of ASDA stores will struggle to make a profit which might explain their desire for petrol station and small shops. Sainsbury will have trouble at 10% of their stores.
It’s all part of the plan, isn’t it?
Private school closures and dumbing down educational standards will be seen as an added bonus to the regressive socialist Labour government.
Socialists never want to lift people up, always hold them back.