In a comprehensive article published in the Spring 2025 edition of the Independent School Bursars Association’s (ISBA’s) journal, Arun Kanwar (partner) and Alison Hinds (manager) of Cairneagle analyse the tumultuous landscape of UK independent schools. Recent legislative changes, including the introduction of VAT on school fees and the removal of business rates relief, combined with demographic shifts and the aftermath of the pandemic, are reshaping the sector, and this article aims to guide schools through these challenging times by offering strategic advice on adaptation and survival.
The new financial burdens have already led to a noticeable decline in enrolment, with projections indicating a further decrease of up to 13% by 2030. The impact of these changes is not uniformly distributed across all schools; while some may struggle to maintain viable enrolment levels, others with robust financial bases might see this era as a chance to enhance their market position due to less competition.
Kanwar and Hinds urge schools to leverage this period of upheaval as a critical opportunity for transformation. They recommend that schools optimise operations, reconfigure offerings, and diversify revenue streams to strengthen their positions. Key strategies include improving marketing efforts, adjusting the mix of students, and potentially merging with or acquiring other schools to achieve economies of scale and operational efficiencies.
Furthermore, the article emphasises the importance of schools understanding their local market dynamics, differentiating their educational offerings, and effectively communicating the value they provide to parents, especially in light of increased fees due to VAT. Schools that proactively adapt to these challenges, they argue, will not only survive but could emerge stronger, repositioned as indispensable pillars of their communities.
Through their analysis, we aspire to provide a critical roadmap for independent schools at this pivotal moment, highlighting that the actions taken now will define the sector’s resilience and capacity for innovation in the years to come.
Read more here.
Authors: Arun Kanwar (Partner) and Alison Hinds (Manager)
