A Shropshire private school that has boasted it would not pass on Labour’s planned VAT hike to fee-paying parents is being propped up by Chinese investors, City A.M. can reveal. Adcote School, an independent school for girls, courted controversy in April for funding a motorway billboard saying “VAT? What VAT?” to advertise its decision that it will absorb the cost of the VAT hike if introduced. But amid concerns that Labour’s policy, which was confirmed in Wednesday’s Kings Speech, could result in an exodus of students to the state sector, questions are swirling about how the institution intends to cover the costs itself. ✍️ Charlie Conchie ✍️ Guy Taylor Continue reading 👇 https://lnkd.in/eAk_YGkJ
Very interesting observation by Dr Chris Donegan in particular from the real estate investment perspective. My old school has gone down the same route as I believe a number have based in the North Wales, Shropshire area as there has been an abundance of top performing private schools.
Sceptical Empiricist.
1moChinese investment in U.K. schools reflected a desire for Chinese students to attend U.K. universities and the schools were feeders. It also reflected a shift in emphasis to a more holistic educational style that U.K. schools provide. The collapse in the sector following regulatory changes took the wind out of the trend. Chinese investors see schools as brands and platforms with the potential for online and remote learning combined with boarding and day pupils. The economics of that hybrid strategy are different to the residential-only model. As an investment that provides a sanctioned capital transfer overseas into real estate and an operating business the overall investment thesis has a diversification and risk management rationale also.