Cathedral schools threatened by Labour’s tax plans
During a House of Commons debate on choral music in cathedrals, Sir Michael Fabricant, the Conservative MP for Lichfield said, while asking a question, that cathedral schools are “very concerned that if they have to charge 20% on their fees, and possibly lose their charitable status, they may no longer be viable and will go bust”.
Responding to Sir Michael, Andrew Selous, the second church estates commissioner said:” There is a concern that cathedral schools may not be able to afford to pay business rates. If the payment of business rates and the addition of VAT on fees cause choir schools to close, that would be an issue for a number of cathedrals.”
The Independent Schools Council chief executive Julie Robinson later said: “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.”