An operator who had previously feared Labour’s promised abolition of the VAT exemption on private school fees now thinks, as the policy is set to become reality, that the buoyancy of the market will lessen the impact.
Robinson Kimbolton Managing Director Charles Robinson told routeone in January 2023 that the then opposition’s pledge could lead to a reduction in income of 10-20% for his business due to lost work as parents pull their children out of private schools.
With Labour having won power in June, the new government has confirmed VAT will be added to private school fees from 1 January 2025.
Mr Robinson, who says around 80% of his operation’s private hires are linked to one nearby fee-charging school, is opposed to the policy, mainly due to what he believes will be the impact on local communities. However, his stance has softened with regards to the knock-on effect on a currently strong sector.
“We would take a hit but then we will just go and get council contracts,” he says. “We turn a lot of work away so, ultimately, I don’t think it’ll be too bad. We would adapt. All those kids have got to go somewhere else.
“I should think 30% of our enquiries we can’t handle in the busier times of year. We’ll survive.”
He adds of the coaching market since COVID-19: “I don’t think the demand has recovered but I think a lot of people took it as a good time to retire with lockdown and PSVAR. And then there aren’t new people joining the industry, so at peak times there is a shortage of coaches.”
