Warning Norfolk towns could suffer from school fee changes

County towns with major independent schools would be hit by the controversial changes, Conservative peer Lord Fuller has warned. 

Lord Fuller of Gorleston-on-Sea (Image: Roger Harris)

The former South Norfolk Council leader highlighted how Gresham's School in Holt and Langley School near Loddon each employ 450 local people.

Gresham's School in Holt (Image: Antony Kelly)

In a House of Lords speech he slammed Labour's decision to take away an exemption which will mean private schools have to charge 20pc VAT on fees from January 2024.

He claimed there could be repercussions for Norfolk jobs if schools struggle to balance their budgets.

Lord Fuller of Gorleston-on-Sea said: "Nearly all these organisations are charities. They are run for charitable purpose, not to generate healthy bank balances.

"Even schools with 500 pupils may run a surplus of just £250,000 a year to fund reinvestment.

"They do not have fat on their backs. In these cases, the fees from perhaps only half a dozen boarders make the difference between profit and loss, surviving or failing. Their finances are finely balanced and under pressure."

Lord Fuller warned jobs in market towns could be hit due to Labour's private school fees changes (Image: Mike Page)

Lord Fuller said the proposal risked putting not just teachers out of work, but minibus drivers, cooks, cleaners, matrons and groundkeepers.

He said: "This proposal will drive more elitism and social inequality, and lead to less opportunity, less charitable purpose, less choice, fewer exports and stunted economic growth.

"It will have a catastrophic effect on the economic base of our market towns, and on working people and struggling parents."

Independent school Downham Market Preparatory School shut in the summer after 40 years.

Principal Elizabeth Laffeaty-Sharpe at Downham Preparatory School, which closed in the summer (Image: Ian Burt)

Founder and principal Elizabeth Laffeaty-Sharpe said the 20pc VAT charge, on top of rising interest rates and energy costs, was "the straw that broke the camel's back".

Leaders at Norfolk County Council fear more youngsters will need state education, should parents stop paying for independent education.

Tory-run County Hall is worried that will also see its already soaring spending on children with special educational needs and disabilities rise even further.

A government spokesperson said: "Ending tax breaks on private schools will help to raise the revenue needed to fund our education priorities for next year, such as recruiting 6,500 new teachers."