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ARTICLE · 06 MAY 2025

Facing The Challenge Together - Independent Schools And Universities

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In the independent schools space, the VAT and business rates position is having a severe impact and we are seeing many schools having to make very difficult decisions and, in some cases...

United KingdomConsumer Protection
Philip Reed
Philip Reed
Emma Flower
Emma Flower
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It's a hard time to be an independent school or a university.

In the independent schools space, the VAT and business rates position is having a severe impact and we are seeing many schools having to make very difficult decisions and, in some cases, close their doors. In higher education there is a huge squeeze on university finances, with the Office for Students last winter predicting that 72% of universities would be in deficit by the end of the academic year.

Many of these institutions will have healthy fixed asset registers containing valuable property and will be able to pass the 'balance sheet test' but may not, in the short to medium term, be able to readily liquidate those assets and pass the 'cash flow test' to meet the demands of their payroll and other immediate liabilities. This can result in circumstances where a school or university which may be at risk of becoming insolvent is still an attractive partner for another institution with a stronger cash

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