Amit Mehta, founder and chief executive of Inspired Learning Group, predicts the future for the independent schools sector

The independent schools sector faces its most significant challenge since the removal of assisted places 30 years ago. While this change forced schools to operate more independently and competitively, the landscape is now shifting towards greater collaboration and consolidation. The introduction of VAT on school fees will accelerate this trend, leading to the emergence of more school groups, both commercial and charitable, similar to models like Brighton College and the Mill Hill Foundation Group.

The future of the sector will be built on the principle of strength in numbers – schools uniting within larger, supportive networks. Ten years ago, I founded the Inspired Learning Group (ILG) with a clear mission: to breathe new life into schools. Today, we proudly oversee 26 schools across the UK, and what began as a sub-brand is now a prominent and successful unified group.

The benefits of group collaboration

For our staff, the opportunity to network and share best practices with colleagues from different schools within the group is invaluable. Geographic clusters of schools form, and teachers can benefit from support, guidance, and professional development in a continuous and practical manner. Therefore, our staff, especially our leaders, are never working alone and can draw on experiences from the wider ILG team. This type of collaboration ensures that children receive the best possible education in the most inspiring environments, with staff challenging every pupil to reach their full potential.

For parents, the reassurance comes from knowing their children are supported by a stable and financially secure institution. And for our children, this collaboration opens doors and countless opportunities for their education journey, from nursery and primary all the way through to senior school. This phase of growth for groups signals a stronger and more sustainable future for children, teachers and families alike.

Proactive planning is critical in a changing landscape

Charitable schools have an opportunity to address these challenges, but they must act quickly and decisively. Trustees (governors) must have complete visibility of their school’s finances and understand the implications of future scenarios. With external economic factors like VAT on fees coming into play, financial diligence is more important than ever.

Developing realistic financial forecasts that balance ambition with rationality is key. Decision-making should be data-driven and proactive, not reactive. Schools must adapt quickly to changing circumstances, and boards need to engage more frequently to make timely, strategic decisions. Trustees need to be more actively involved to enable this to happen. Meeting once or twice a term may not allow for the rapid decision-making required in today’s dynamic environment. Commercial operators handle these decisions more effectively and their full-time focus on financial sustainability positions them well for the future and enables quick and effective decision-making.

Staying aligned with vision and purpose

A clear vision, a strong set of values, and unique selling points are crucial for schools to remain focused and responsive to challenges. At ILG, we prioritise these qualities and work closely with each school to strengthen their capital base. Schools must also make sound financial decisions, especially when facing the risk of declining enrolment or cash flow challenges. Proactively managing costs, rather than relying on loans, is essential for long-term stability.

Is joining a commercial group a strategic move?

The decision to sell a school is never easy, but bold, decisive actions are necessary to safeguard the future of the institution and its community. There is always the option to close a school, but this will have a deep and profound impact on students, parents, staff and trustees. Boards must take bold and courageous decisions rather than let situations spiral out of control. Any closure will affect not just the school and its stakeholders but also the broader community. For example, Saint Felix School, a part of ILG, is the second-largest employer in Southwold, Suffolk, and a vital part of local life.

In situations where we have taken on financially distressed schools, we have always sought to maintain their identity and ethos, while empowering the leadership team with the tools to succeed. Our governance structures are built to ensure continuity, while fostering a mindset shift towards operational excellence and efficiency.

We implement a robust governance structure that includes our senior leadership team and advisory board, as well as ongoing links with previous trustees to ensure continuity. During the transition to new ownership, we proactively engage with all stakeholders, including parents, staff, pupils and suppliers. We conduct surveys, competitor, market and SWOT analysis to fully understand the school’s DNA. This exercise helps formulate a three-year strategy which we execute via a balanced scorecard approach with clear and measurable goals. Additionally, we train our leaders in ‘Lean Six Sigma’ principles, mapping key processes into three categories: customer value-added, business value-added, and non-value-added (waste). This helps us focus on what matters most and eliminates inefficiencies.

At ILG, we conduct thorough market analysis and stakeholder engagement to shape our strategies, which can sometimes include expanding the school’s programme or offering. For example, we extended our education offerings at Yateley Manor Prep School, Surrey, to include GCSEs, directly addressing community demand and providing children with continuity in their education journey.

The ILG approach

Our approach focuses on achieving efficiencies through group economies of scale, centralising services like insurance, audit, software and procurement, while maintaining a strong financial backbone with a robust capex process. This allows us to operate with greater financial discipline and agility, while still prioritising educational excellence. Our strong financial function includes several chartered accountants and tax specialists who continually analyse numbers, develop financial models, and conduct scenario planning. We provide all our school heads with real-time dashboards with bespoke products for marketing, HR and finance.

Most importantly, embracing a commercial mindset and approach is crucial. We prioritise recruiting best-in-class leaders with a focus on academic excellence, together with strong commercial awareness.

Our ILG Heads Academy trains future leaders in both educational and commercial disciplines, ensuring our leaders are prepared for the demands of today’s changing independent school sector. Our success lies in creating a comprehensive feeder network, aligning nurseries, prep schools and secondary schools to offer a consistent educational journey for families. For example, Walton Montessori, based in Walton-on-Thames, Surrey, is strategically positioned near our prep school, Danesfield Manor as a feeder into its reception class.

Summary

• We must be ready to step outside our comfort zones, innovate and embrace new opportunities.
• A commercial mindset is key to driving long-term success.
• Above all, we remain committed to our ultimate goal – securing a brighter future for our children as well as maintaining integrity in every decision we make.
• Any school that joins ILG can feel properly supported to move forward to the future.
• Group strength ensures academic excellence with commercial sustainability

As we continue to grow, we believe the future of independent schools is one of strength, resilience and sustainability, built on collaboration and a shared vision for excellence.

Amit Mehta