I recently had the pleasure of presenting at the International Programme for the HMC Conference in Belfast.
Unsurprisingly, VAT was on everyone’s minds, with a 20% tax on tuition fees coming into effect from January. British schools will be forced to pass much of these costs on to families. This will have a significant impact on independent schools, with some predicting as many as 40,000 children forced to leave the sector.
New Zealand is one of the few jurisdictions that already has a tax on tuition fees. We recently conducted a survey of our members to more accurately quantify this. Of the 26 schools that completed the survey we found a total government subsidy of just under $29 million in 2023. GST on tuition across those same schools was $62 million, with net GST being $43 million (net GST being the figure that the Ministry of Education is more interested in). Whichever way you look at it, the government is getting outstanding value – both educationally and financially – for the small investment they make in the sector.
Aside from the tax issue, there were two other reflections I left the UK with, both of which have relevance for New Zealand.
Firstly, it was clear that UK Independent Schools are working hard to develop and showcase cross-sector partnerships between independent schools and state schools. These play an important role in widening access to educational opportunities, and supporting the overall development of students and staff. Importantly, schools are recognising that partnerships need to be mutually sustainable, impactful and serve the public good. Working collaboratively for mutual benefit can bring about significant change and equip schools across both sectors with invaluable tools to meet the challenges faced by the education sector as a whole. Many independent schools in New Zealand have active and mutually beneficial partnerships with state school counterparts, but these are often unseen and unnoticed. There is more we can, and should, be doing to celebrate these.
Secondly was the impact of academies (similar to charter schools in NZ) on the education landscape. Since its inception 23 years ago, there has been a systemic shift towards academisation in England. 49% of all mainstream primary and secondary schools are now academies, collectively enrolling over half of all students. A report by the Education Policy Institute in 2017 found that while academies do not provide an automatic solution to school improvement, there is some evidence to suggest that they have helped to improve the performance of low performing schools. As in England, charter schools have the potential to be a significant disrupter in the education landscape in New Zealand. What’s not clear is the impact – if any – they will have on the independent school sector. This is something we will continue to monitor closely.
