ISM Magazine - February

INDEPENDENT SCHOOL MANAGEMENT

Insights from a successful school merger

Maximise revenue from hiring school facilities

A new perspective to VAT on school fees

Managing claims of discrimination

Effective governance

What should be on your agenda?

New year, new strategies

Welcome to the first edition of Independent School Management of 2024. Thank you for your continuing support for the magazine; it really is appreciated.

The start of this new year feels, finally, like the beginning of the countdown to the general election. Rather than a notional future event, it is soon to be real and is approaching with some rapidity. At this stage, it still seems likely that Labour will win and, therefore, the threat of VAT on fees will become a reality. Every independent school with a charitable status should have been preparing for this eventuality for some time. If not, you are now in the last chance saloon.

We refresh some of the key options to mitigate the risks, but add some extra insights to help the sector survive and thrive. Considering a payment scheme, for instance, where fees are charged in advance might work for some schools. The fees would need to be paid in full for the school to use as it sees fit and should not be held under an escrow account or similar arrangement. There may also be an opportunity to recover VAT incurred on certain capital expenditure from the previous 10 years if subsequently used for taxable activity.

ONWARDS AND UPWARDS?

But life must go on regardless so, in this edition, we focus on aspects of effective school governance, beginning with the risks and opportunities of artificial intelligence. We show how governors can navigate the ever-evolving educational landscape effectively, including understanding the ethical considerations surrounding the technology.

While this approach requires governors to be forward-thinking, it is also important to recognise that times have changed and attitudes expressed

by some governors in previous eras may have exposed occasions of accidental discrimination and other biases. We tackle this risk of outdated attitudes head-on and also provide a case study of how a school should respond to claims of discrimination and examine the key considerations for governors.

FOLLOW THE MONEY

Notwithstanding the pending threat of VAT on fees, taking a more commercial approach to a school business is vital anyway. Rising fees have represented an unsustainable trend for some time. Finding alternative ways to boost the bottom line should always have been a given. We put the spotlight on the commercial activities that Mill Hill School has introduced. Its projects have paid dividends and have also boosted the school’s profile. Not all schools are fortunate enough to have similar facilities to launch such ventures, however, so we will be profiling other schools’ entrepreneurial acumen in future editions.

COME TOGETHER

Many schools will have been considering a merger, of course. In our summer edition last year, we outlined the practicalities and considerations of mergers, with attention given to those of legal, financial and reputational concern. In this edition, the head of a merged entity in Bedford provides the inside story of its own successful outcome, sharing how the process panned out, including combatting the risk of a ‘them and us’ mentality between staff and parents of the formerly separate schools.

CHALLENGE THE NORM

The vast majority of our editorial content is intended to challenge outdated strategic orthodoxies. That’s because strategies must change and adapt on a

continual basis. This is, necessarily, a challenge. However, by following a series of techniques, it’s possible to harness change and not be a victim to the vagaries of it.

Schools that are adept at strategic thinking are able to identify or predict opportunities and obstacles before they materialise. This means that they can prepare themselves for future threats, but also that they can act to shape a future where the most beneficial outcome for their school becomes more likely. After all, there are lots of different possible futures. The trick is to identify those you should focus on for your school. By applying strategic thinking skills to develop an understanding of how the future might unfold, your school will be well placed to position itself for success by developing a strategy that exploits the opportunities you’ve identified while overcoming the obstacles.

To keep up with the latest sector news and people moves, follow us on Twitter @IndSchMan

Andrew Maiden Editor, Independent School Management

Andrew Maiden

Chief executive officer

Alex Dampier

Chief operating officer

Sarah Hyman

Editor

Andrew Maiden andrew.maiden@nexusgroup.co.uk

Reporter and subeditor

Charles Wheeldon charles.wheeldon@nexusgroup.co.uk

Advertising & event sales director

Caroline Bowern 0797 4643292 caroline.bowern@nexusgroup.co.uk

Marketing Content Manager

Sophie Davies

Business development

Robert Drummond

Luke Crist

Mike Griffin

Kirsty Parks

Event manager

Conor Diggin

Marketing campaign manager

Sean Sutton

Publisher

Harry Hyman

Investor Publishing Ltd, 5th Floor, Greener House, 66-68 Haymarket, London, SW1Y 4RF

Tel: 020 7104 2000

Website: independentschoolmanagement.co.uk

Independent School Management is published six times a year by Investor Publishing Ltd. ISSN 2976-6028

© Investor Publishing Limited 2023

The views expressed in Independent School Management are not necessarily those of the editor or publishers.

@IndSchMan

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6-7 News in brief

8-9 Stronger together

Merging two schools

10-12 Schools for hire

Increase revenue from lettings

14-15 Hire safely

Guidance for school facilities hire special report

16-17 Do it yourself

Get a grip on artificial intelligence

18-19 People like us

Reflect the people you serve

20-23 Do the right thing

How to respond to discrimination claims

24-26 Think strategically

Continually review your school’s strategy

27-28 Employee tax risks

The pitfalls of managing employmentrelated tax matters

29-30 Beware of fraudsters

Procedures for apparent suppliers

31-33 Get rid of carbon

How to develop an effective plan

34-35 A matter of judgement

Guide to investing charity money

36-37 Next in line

Prepare the next generation of school leaders

38-39 Rateable values

The effects on your school estate

40-41 A taxing problem

A new perspective of VAT on fees

42 Out of order

The moral and business case for charging orders

43-44 Before the deluge

Mitigate the threat of flooding

45 Deal with bad news

Combat the fallout from an unforeseen crisis

46 Have a plan

Improve school admission practices

47-48 Maximise fundraising

Celebrate record levels of income generation

49-50 Relationship for life

Short-termism doesn’t work in development

51-52 People moves

53-54 The last word

Dai Preston of Arnold Lodge School

News in brief

AMPLEFORTH SAYS VAT WILL NOT BE PASSED ON TO PARENTS

Peter Roberts, the headmaster of private school Ampleforth College in Yorkshire has pledged not to pass Labour’s threatened tax hike on to parents, saying the school will do everything it can to absorb the proposed 20% VAT which the party plans to impose on school fees, the Daily Mail has reported.

Roberts told the Daily Telegraph: “If there is a VAT thing, we will not pass it on to the parents. We will just do all we can to make sure we get through, just as we always do.”

Labour’s VAT plan aims to raise £1.5 billion a year with the tax which it plans to spend on state schools.

LABOUR TO BACKDATE VAT ON INDEPENDENT SCHOOL FEES

Shadow education secretary Bridget Phillipson said if Labour win power, it will ensure that parents will pay VAT on independent school fees, even if they have paid in advance, by making a change to tax law.

In a speech at the Centre for Social Justice in London, Phillipson said: “George Osborne, when he made VAT changes, did something very similar. So, we’re clear there was precedent when the legislation was drawn in such a way that it is effective in raising the money that we need to invest in our state schools.”

Osborne’s changes meant that the VAT rate for goods or services provided were applied from 2011 onwards, even if invoices or prepayments had been received before then.

The Independent Schools’ Bursars Association chief executive David Woodgate said: “The number of parents who can afford to use fees in advance schemes is very small and any political focus on this niche issue is a clear attempt to exploit stereotypes about independent schools.”

Woodgate added: “Most of our parent base are from dual-income households who pay school fees each year from taxed income and it is these families who should be concentrated on: these are the people Labour’s tax on education would hit hardest.”

Meanwhile Labour Party leader Sir Keir Starmer said that funds he will raise from taxing independent school fees will be spent on mental health support for every school in England, The Telegraph has reported.

Speaking to the BBC, Sir Kier added that this policy will help reduce self-harm and suicide among young people and is one of a number of policies forming part of a “children’s recovery plan”.

A senior Conservative Party source said Labour was “stretching the limits of credulity”, adding: “Their numbers simply don’t stack up, so Labour will either have to ramp up national debt or slam working families with higher taxes.”

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.”

FLOODS FORCE ETON INTO REMOTE WORKING

Eton College told its 1,350 pupils to stay at home at the start of term because the lavatories have backed up following flooding, Yahoo reported.

Thames Water warned that sewers in the centre of the Berkshire town wouldn’t have the capacity to cope if the boys returned, so the school switched to remote learning until the issue was resolved.

A spokesperson for Eton College said: “Following extensive flooding in the region, the Thames Water sewers which serve the town of Eton, flooded.

“Therefore, boys could not return for the scheduled start of term.”

COPTHORNE PREP SCHOOL JOINS CATERHAM

Caterham schools has acquired Copthorne Prep School (CPS) in Sussex, cementing a long-standing relationship between the schools.

Copthorne Prep School headmaster Nathan Close will continue to lead the school.

Caterham schools encompasses Caterham senior school, led by headmaster Ceri Jones and Caterham Prep led by headmaster Ben Purkiss, and now CPS.

Bridget Phillipson

Sir Michael Fabricant

Close said: CPS has been providing first-class education for children for the last 121 years. This next step is a fantastic opportunity to build on our proud legacy by joining a highly successful, forwardthinking family of schools which shares our core commitment to the happiness and success of our children. Crucially, parents can have full confidence that their children will continue to enjoy the happy, successful school they chose, and that their children will be fully supported and prepared for whichever senior school they chose beyond CPS.”

Caterham School is the founding school of the East Surrey Learning Partnership, a group of independent and state-maintained schools which work together as equal partners to further educational opportunity for all young people in the local area.

BELMONT SCHOOL TO CLOSE

Belmont School in Dorking, Surrey has announced it is closing after 143 years of operation.

Belmont is an independent coeducational school for pupils aged from three to 16.

On the school’s website Belmont’s head of school Marc Broughton wrote: “It’s with a heavy heart that we have contacted the parent body to confirm the closure of Belmont School on the 15th of December. We have worked tirelessly to exhaust all avenues to find an answer to this situation, but the Governing body, Save Belmont team and school leaders have sadly been unable to come up with a viable solution.

“In my short tenure as Belmont Head, I have been so immensely proud to lead

a school with such wonderful staff and pupils. Since the moment I set foot on site it was clear that Belmont held a very special place in the hearts of so many people. Over the course of the last few weeks, I have been touched and overwhelmed by the Belmont community and the lengths that they have gone to in order to try and save the school. They have come together and displayed such strength and resilience at such a difficult time and for this they should be truly proud.”

FIVE MEN CHARGED OVER ABUSE AT EDINBURGH ACADEMY

Five men aged between 69 and 90 have been arrested and charged in connection with abuse spanning 24 years at private day school The Edinburgh Academy, STV has reported. The abuse incidents are alleged to have taken place between 1968 and 1992.

A sixth man, aged 74, will be reported to the Procurator Fiscal.

Police Scotland said reports are being submitted to the Procurator Fiscal.

Detective inspector Colin Moffat said: “We would like to thank everyone who has come forward and assisted our enquiries to date. While the investigation of child abuse, particularly non-recent offences, can be complex and challenging, anyone who reports this type of crime can be assured that we will listen and we will investigate all reports, no matter when those offences occurred or who committed them.

Edinburgh Academy was the subject of hearings at the Scottish Child Abuse Inquiry last year. Former pupils alleged sexual and physical abuse during witness statements to the Inquiry.

Broadcaster Nicky Campbell previously alleged he was abused while at the school by former maths teacher and rugby coach Iain Wares, who also taught at Fettes College, and now lives in South Africa.

Wares, aged 84, faces more than 80 charges of historic abuse relating to more than 40 victims aged as young as nine. He also faces separate charges of sexual misconduct in Cape Town.

A South African court approved Wares’ extradition to the UK in 2020, but that has been delayed by an appeal.

Eton College

Pupils from Copthorne Prep

Stronger together

Ian Daniel reports on the successful merger of two schools, with insights on how it was achieved

In 2013, the governors of Rushmoor School and St Andrew’s School, both based in Bedford, formed an alliance, so that one governing body would oversee both schools, with one leadership team. As head at Rushmoor, I was then appointed principal of both schools. I explained to the joint community that there were many difficulties to overcome, but my most important message was that the education and welfare of the pupils was at the centre of all decisions.

Over the past 10 years, the pupils have been very open to the benefits that the merger has brought and in May 2021 the two schools formally merged under one new name, Bedford Greenacre Independent School. Changing the name was key in order to build a new brand identity and it would have been unfair to choose one name over the other. Currently, the pupils are spread across two small urban sites, but in the next academic year they will move to a new £24 million, 40acre facility, which will be the final piece in a very successful merger.

GOOD COMMUNICATIONS

Success didn’t just happen and I believe that communication with parents has been key. I routinely will be seen outside the school gates chatting to parents. I aim to be approachable and want to keep parents involved, crediting the parent council as being invaluable in the decision-making process, which has been particularly important when combining

a girls’ school with a boys’ school and navigating the introduction of a coeducational environment.

Open debate is important to find positive solutions; listening to the views of parents, staff and pupils is the most important aspect of leadership. From the outset, the school was keen to promote the wider opportunities as a positive factor in the merger, helping benefit pupils by allowing them to forge new friendships across clubs, performances, school teams, fixtures and residential trips.

Of course, there were difficulties along the way, the first being overstaffing, with redundancies having to be made in the early days of the alliance. Streamlining has ultimately led to greater efficiencies, with specialist staff working across the two sites, leading to parity in the standard of teaching and learning.

BOOSTING THE ROLL

Raising pupil numbers was important and has been managed by improving marketing, such as introducing a social media presence and ensuring that the school leadership is hands-on in meeting prospective families and being more visible at community events. The leadership wants to convey to the wider public that, as a non-selective school, we cater for all abilities by providing an individual approach.

Day-to-day management of the two schools was challenging for a number of years, policies had to be combined,

expectations had to be adhered to, the “we always do it this way” from some staff had to be challenged and workable solutions found. I felt that some saw the alliance as a Rushmoor takeover, which was not the case, so I was keen to promote debate between the leadership and staff to allow solutions to be found that would ultimately work in the best interests of the pupils. So a flexible approach was adopted and this is why, after a number of years, it was agreed that the junior pupils from both school sites would be brought together on one site, as the school moves fully towards co-education and in preparation for the move to the new building. It was agreed that this decision would be the least disruptive for the younger pupils, which has proved correct as the combined junior school is a thriving environment. Of particular note is that junior staff from across the two sites are now very happy to be working together, using their areas of expertise more effectively and providing the pupils with greater opportunities in many areas.

GOOD SCALE

The merger brought with it economies of scale; while two small schools might have struggled with some financial elements, such as introducing modern school management information systems, or improving IT resources for pupils, working together has meant that this

Ian Daniel

Artist's impression of Bedford Greenacre Independent School

has not been a problem. The end result means that improved systems allow staff to monitor pupils’ progress better and to develop more efficient working methods. For example, pupils immediately had laptops and smartboards updated when the new structure was established. Small improvements, such as IT facilities, hold huge benefits to pupils who have specific learning needs, but also help to provide extension opportunities for gifted and able pupils. When the final step of the merger takes place, these economies will be even greater as the school will only have one site to maintain and new energy-efficient technologies are being incorporated to help further.

Initially, there was a ‘them and us’ mentality, but with the passing of time, and movement of both staff and pupils between the two sites, this has ceased. Now with the new name and branding, the staff and pupils are proud of what the alliance has become.

THE NEW BRAND

Getting the rebranding correct was crucial, using Bedford in the name is geographical, but also underlines that Rushmoor and St Andrew’s had very long histories in the town. Greenacre links to the semi-rural setting of the new site and also Greenacre was the family name of the previous landowners dating back to the 14th century. The logo shows a tree to signify growth, with its roots used as a reference to the school’s strong past. The vertical lines signify stability, longevity

and strength for the future. Interest in the school has soared due to the rebranding and the imminent move, as well as the reputation of individual support that the school provides, having been rated as excellent in all areas in its 2022 inspection.

Pupils’ voices have contributed to the successful merger; the leadership team is interested in their opinions, such as including them in the design process for the rebranded uniform. Another example happened in 2016, following consultation with pupils, a joint sixth form was opened. Since its introduction, new subjects have been included in line with pupils’ wants and needs and this has meant it has been a successful addition, with the most recent cohort being the largest yet.

THE NEED TO ADAPT

Over the past 10 years, the willingness to adapt plans as the educational landscape has developed has been vitally important. Moving to a fully co-educational structure will be the biggest change with the move to the new site, so the school is already timetabling co-educational lessons where logistics allow. The school has also had to adapt plans when timings have been pushed aside due to problems like planning issues creating uncertainty. The pandemic caused issues too, but was managed well with a virtual full timetable, online assemblies,

“Open debate is important to find positive solutions; listening to the views of parents, staff and pupils is the most important aspect of leadership.”

competitions, talent shows and sharing news via social media to maintain the school community spirit.

Since 2013, a great amount of determination and perseverance to overcome difficulties has been required; I have highlighted the importance of having governors who have wide-ranging areas of expertise as a contributory factor to the success of the merger.

AND MORE

Through the alliance, to the formal merger and rebranding, one point has been made clear. The school is far more than the facilities it has, it is about a dedicated staff, who go above and beyond to ensure that pupils are pushed to reach their potential. Any schools that plan to merge will face challenges, but putting the pupils at the centre of all decisions will be the key to overcoming them.

Ian Daniel is principal of Bedford Greenacre Independent School.

BGI school pupils

Schools for hire

Adele, you’ve been working with Mill Hill for some years now, making lettings count. Where did it all start?

After over 17 years working in the commercial school sector there’s not much I haven’t seen. When I started out, some schools were renting out their halls and sports centres on a very ad hoc basis, with the bursar or the school office often trying to juggle this alongside their other commitments.

When I was approached by the bursar of Mill Hill, I was working in the events industry and so the transition seemed easy and then I very quickly ended up doing my first film shoot. It was baptism by fire, no small affair, but a big ITV drama which brought a lot more drama than I had anticipated. But I survived, as did the school happily, in receipt of an injection of cash. Suddenly, commercial opportunities were taken seriously.

Starting with filming, that’s a braveor - foolhardy decision?

Yes, it was in retrospect probably quite foolhardy. The school had no prior experience of filming and neither did I, but now, more than 150 film shoots on, Mill Hill has established a reputation as a great location and we have generated significant returns for the school. We’ve also started to engage our students in the process, where appropriate, offering them opportunities to work on a professional film set, and we now have an annual London schools film competition, londonschools.film, judged

“We’ve also started to engage our students in the process, where appropriate, offering them opportunities to work on a professional film set.”

and supported by our contacts from the industry.

A word of caution, though, filming isn’t for every school and you do need to remember that (a) You need the school’s buy-in – which needs to review the script carefully and sign off the project; (b) If you’re managing a film shoot, you need to remain firm about what is allowed to happen onsite and what you will and won’t accept; and (c) You will need to be flexible. There will be times when they’re on set and they may decide they need to change something or move location slightly; adapt to it.

So, filming is one way of generating revenue from the school’s buildings and facilities, but probably not where most schools will start?

No, probably not. Fast-forward and I am now asked what the best strategy is to ensure that commercial income is consistent and in line with the needs of a school and that we optimise the return on our assets.

Like all businesses, the first income streams should be the easy wins, the building blocks on which to build.

For many schools, a day camp and/or a residential let run by reputable third parties can bring in reliable and substantial amounts of income. The external company, operating

independently as a business, will take the pressure off the school’s team, allowing them to focus on other areas. Then comes the dry hire – classroom lets, regular theatre bookings, sports pitches and swimming pool hire – followed by specific bespoke programmes and events – and perhaps filming – all of which are slightly riskier but with potentially higher financial returns.

How do you get going on the commercial journey?

Schools need to start by identifying the opportunities. Every school has at least five asset classes they can explore, all of which can deliver a significant return when managed carefully and in the context of a wider whole-school strategy: education, probably the school’s most significant asset and often the most overlooked when it comes to commercial opportunities; co-curricular, normally evidenced by the school’s considerable investment in appropriate facilities; provenance, the vital role that the history and connections embedded in the school’s past can play in the future success of the school; community, partnerships and public benefit – a significant and growing group of assets that, when carefully considered and integrated into the commercial strategy, can deliver excellent returns

Dorothy McLaren questions Adele Greaves, director of commercial operations at The Mill Hill Education Group, about how she has increased the revenue from lettings income

Adele Greaves Dorothy McLaren

“Every school has at least five asset classes they can explore, all of which can deliver a significant return.”

for both parties; and finally, of course, the buildings and facilities, which most schools have in abundance and which, in many schools, lie dormant for a significant part of the year.

For some schools, it may be that the only agreed and accepted income generation opportunities initially arise from, for example, the hiring out of sports facilities – the letting of the sports hall, swimming pool, tennis courts etc – but for others it may be a lot broader and deeper, involving different departments across the school in developing bold projects and programmes that knit

together different assets to deliver more significant returns. These bespoke projects are riskier, but the returns are significantly higher.

A whole-school approach to commercial activity is so important, with results often leading to a sum greater than its parts. How, in your experience, can this work in practice? When we get it right, the returns are significant. Not only can we generate much better revenues when we develop a broad-reaching programme, which engages the school and the wider community, we also get a chance to better position the school and reinforce its brand and USPs (unique selling points). Getting this right can be challenging and it is important to look at the strengths within your school community: the well-placed head of sports or drama, for example, to see what connections can be made in their respective fields.

This level of attention and planning will not only bring good PR to the

school, with amazing opportunities for current pupils from the school’s contacts, these initiatives and programmes will also engage the local community and extend the brand’s reach far beyond the school walls. Often working with the right, carefully selected partners, you will find that they can add real value, respecting and potentially even investing in your facilities, and introducing prospective pupils into the admissions department.

Any director of commercial operations needs to be involved in key planning of the school’s future, especially the planning of new buildings or current building upgrades to future-proof dual use to maximise commercial opportunities. Commercial use must become an integral part of the school’s timetabling – vital, additional income and value, not inconvenience – and the development of programmes and initiatives must be undertaken with transparency.

There need to be open conversations about the importance of this non-fee revenue.

Outside filming for Three Men in a Boat

We often talk about ‘dual use, school first’ – is it a given that you have dual use approval?

No. I started out by understanding the school’s estate, or estates in our case as we now have eight schools within the Mill Hill Education Group and we are working hard to drive returns on our assets across all of our schools. I start by understanding how the estate is used by the school, when the facilities are lying empty and which are in demand on the open market or unique to the school within its particular target market. I also appraise what opportunities there are in the local community, such as local community school needs, strong sports associations or clubs, local area community groups or simply a lack of local venues to hold meetings, workshops, revision classes or events.

This work is the basis of fulfilling the ‘dual use, school first’ promise, but it is only the beginning. You then need to consider safeguarding and child protection, contracts and commercial parameters, which will often require legal advice. You need to develop appropriate risk assessments, consider health and safety impacts, and ensure that the good reputation of the school is protected above everything else. Your colleagues will expect you to have covered these bases and you will need to

reaffirm your commitment, consistently and continuously, to delivering a professionally run school site, irrespective of whether it is for school use or a third party.

What is critical to the success of a commercial programme?

You need a clear mandate from the very top of the school – the chief executive/ chief operating officer, the head(s) and the senior leadership team. The leader of the commercial operations team needs this senior level of support and then the grit, vision, creativity and bravery to develop exciting, bold and interesting projects, which inspire the internal audiences and encourage participation

and engagement from your external audience. Crucially, the commercial team will need the support and participation of the school’s marketing team since they are the custodians of the school’s brand(s) and your marketing partners are invaluable in helping to take the product(s) to market and engaging the wider community.

Have you seen a change in how schools approach their commercial activities?

With the pressures on schools to generate additional income, there’s never been a more important time to look at every possible source of revenue. The school’s doors should be as open as the minds of all those looking to make the most of their considerable assets.

I have been excited by the formation of the Schools Enterprise Association in recent years, which supports the commercial managers and all those working in this unique sector within schools. It is important that everyone is actively engaged so that schools and pupils benefit from the opportunities to really add significantly to the school’s non-fee revenue streams as every penny will become even more vital over the next few years.

Adele Greaves is the director of commercial operations at The Mill Hill Education Group; Dorothy McLaren is the founder and chief executive of The Schools’ Enterprise Association.

Fred Sirieix (centre) hosting Snack Masters for Channel 4

David Hasselhoff (right) filming Hoff the Record

TAILORED, NOT UNIFORM

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Hire safely

As schools seek to maximise their commercial offering, they must consider the latest statutory guidance to ensure that effective and compliant hire facilities agreements, that specifically reference and implement safeguarding requirements, are in place. This is an overview of recent updates to both statutory and non-statutory safeguarding guidance that schools should consider when letting school facilities for non-school activities.

WHAT HAS BEEN UPDATED?

The Department for Education (DfE) has recently updated the following guidance:

• Keeping Children Safe in Education 2023 (KCSIE) – statutory guidance for all schools and colleges.

• ‘Keeping children safe in out-of-school settings’ – non-statutory safeguarding guidance for providers of after-school clubs, community activities and tuition, to keep children safe where individuals or organisations provide these services.

WHY HIRING SCHOOL FACILITIES IS POPULAR

Schools increasingly seek alternative streams of income to thrive and maximise their assets. Many options are available to generate additional income, one of which is hiring out facilities.

Hiring facilities is traditionally attractive as it makes use of facilities already at the school’s disposal which may be unused for periods of time. For example, a school may choose to hire out its sports hall to a community activities group in the evening, or boarding accommodation during school holidays.

“Schools increasingly seek alternative streams of income to thrive and maximise their assets.”

We frequently find that in this regard, independent schools can operate as a year-round business. The risk of a future Labour government’s plans to increase VAT on school fees by 20%, also lends additional urgency to plans to increase income to offset this potential threat.

WHAT CHANGED FROM SEPTEMBER LAST YEAR?

There are a number of key considerations which all schools should keep in mind when putting in place any hire arrangements.

KCSIE is updated annually (usually in September) and last year the updates included provisions which directly affect facilities hire. KCSIE now references ‘Keeping children safe in out-of-school settings’ and confirms that it sets out safeguarding arrangements that schools should expect providers of services such as after-school clubs to have in place.

In relation to safeguarding, new provisions have been inserted in KCSIE which stipulate that when a school receives an allegation relating to a safeguarding incident that happened when an individual or organisation was using the school premises to provide activities for children, the school should follow its own safeguarding policies and procedures, including informing the local authority designated officer (LADO). Hirers are expected to report any incident to the school’s designated safeguarding lead (DSL) within a set period and we would usually recommend this is within 24 hours.

KEEPING CHILDREN SAFE

Hirers are expected to meet safeguarding requirements as a matter of best practice set out in ‘Keeping children safe in out-ofschool settings’. It is important that schools ensure that this guidance is reflected in hire facilities agreements. There are a number of core features of this guidance.

HIRER’S STAFF

The staff of hirers should undergo basic safeguarding training. The updated

guidance takes expectations further, and now recommends that all staff present, or in a position of responsibility when using the school premises, completed basic health and safety training relevant to children.

Furthermore, the hirer should conduct regular performance reviews of staff and volunteers to check their suitability and training requirements. Most employers will already be conducting regular appraisals of staff performance, which should focus on the suitability of staff to participate in activities in out-of-school settings and ensuring the training is adequate.

RISK MANAGEMENT

The hirer should conduct a risk assessment appropriate to the proposed activity, reviewing and updating it annually (or earlier if the circumstances or public health advice changes) and put in place active arrangements to monitor whether the controls for managing risks are effective and working as planned. The hirer should also have in place a fire safety and evacuation plan, as well as a plan to respond effectively to an emergency on the school premises.

POLICIES

Schools should expect hirers to have a number of policies in place before hiring school premises. The key policy,

Emma Swann sets out the key changes to statutory guidance for school hire facilities agreements

Emma Swann

of which schools should request a copy, is the hirer’s child protection and safeguarding policy. Schools should also seek confirmation that the hirer has a complaints procedure in place that includes provision for children, young people and families to raise safeguarding concerns, together with a whistleblowing policy so staff can raise concerns about the maltreatment of any children, as well as a staff behaviour policy.

There are also certain expectations which schools should place on hirers where the activity involves children under five years of age. In these circumstances, schools should expect hirers to provide paediatric first aid training to their staff, unless there’s an exemption from registration with Ofsted. The hirer should also have in place a GDPR-compliant registration form for children in its care, including essential contact information and medical details, where it has five or more members of staff.

WHAT DOCUMENTATION SHOULD SCHOOLS HAVE?

All too often, schools rely on inadequate hire agreements with hirers which offer limited clarity regarding the obligations of the parties and provide little protection to the school.

To ensure safeguarding is in place and to protect the school commercially, a robust hire facilities agreement will ensure consistency and certainty that obligations will be met. The agreement's terms should

cover payment, liability, force majeure and termination, in addition to appropriate safeguarding provisions.

Alongside the hire facilities agreement, schools should put in place a supplemental letter of undertaking, which the hirer must sign when entering into the hire agreement. This requires the hirer to undertake to comply with its safeguarding obligations pursuant to the hire agreement.

The hire agreement may also be supplemented by a safeguarding checklist, solely for use by the school to ensure and document that all safeguarding obligations placed on the school are achieved. For example, this checklist would include ensuring the hirer has in place a child protection and safeguarding policy, and that a copy has been requested and checked by the school to ensure it is appropriate for the purposes of the hire facilities agreement.

ROLE OF THE GOVERNING BODY

A school’s governing body has a strategic leadership responsibility for its school’s safeguarding arrangements. Governing bodies must ensure governors receive appropriate safeguarding training so they have the knowledge to provide strategic challenge to test and assure themselves that the safeguarding policies and procedures in place are effective and support a robust whole-school approach to safeguarding. Governing bodies should

“The key policy, of which schools should request a copy, is the hirer’s child protection and safeguarding policy.”

have safeguarding as a standing item on its agenda and the hiring of facilities should be included as part of a review of processes. These arrangements should be monitored and included as part of any assurance framework.

REVIEW THE STRATEGY

In the current political and economic climate, schools must consider carefully ways to review their strategy, and look to increase their income while managing and balancing any risks and ensuring compliance with legal obligations.

Schools that hire out their facilities, or are considering doing so, should review and update their existing hire agreement, or prepare one to ensure that it reflects all of the recent updates made by the DfE in both the statutory and nonstatutory guidance.

Emma Swann is a partner and head of academies at law firm Harrison Clark Rickerbys.

Do it yourself

Everybody’s

talking about it, but governors must get a grip on artificial intelligence to be able to make decisions about it, as Durell Barnes reports

Independent school governors should be well informed about artificial intelligence to navigate the ever-evolving educational landscape effectively. First and foremost, they should understand the potential benefits of AI in education, including personalised learning, data analytics for student performance assessment, and administrative efficiency. Moreover, governors should grasp the ethical considerations surrounding AI, ensuring the responsible use of AI technologies and data privacy. It’s crucial for them to be aware of the latest developments and timeline in AI, as these can affect the curriculum and teaching methods, influencing decisions on technology investments. Lastly, independent school governors must be mindful of equity and inclusion, ensuring AI is used to bridge educational disparities and provide equal opportunities for all students. By staying informed about AI’s potential and pitfalls, they can shape a brighter and more equitable future for their schools.

HAVE A GO

When I told a colleague that I was going to get ChatGPT to write the (above) introductory paragraph of this article, he (rightly) told me that that was “corny”. But it is the first time I have done such a thing and I learnt that within 30 seconds of briefing ChatGPT I had before me a convincing text, albeit not quite in my style (it might have taken another minute or so to craft that). I knew this could be done, but I hadn’t ever used AI to achieve in seconds something which might

“Governors should grasp the ethical considerations surrounding AI, ensuring the responsible use of AI technologies and data privacy.”

otherwise have taken me a great deal of time. So my first point is a simple one: governors should not just know what AI is and how it can be used, but know how they themselves could use it in their own lives.

I have sat in several rooms witnessing AI enthusiasts demonstrate how much can be achieved, how quickly, and how much refined, but too often to people who marvel at it largely through their own unfamiliarity – almost as if it were alchemy. Once people have an idea of how they might use AI themselves, they can appreciate better what its profound implications are.

FAST TRACK

AI is developing at high speed. The transformation wrought by ICT occurred slowly in comparison and we can’t afford to ‘wait and see’. On the global stage, the UN secretary general, Antonio Guterres, launched his Advisory Body on Artificial Intelligence in October, speaking of AI as “an enabler and accelerator” for the world, able to predict and address crises and scale up the work of governments, stating that “the transformative potential of AI for good is difficult even to grasp”, although he warned also of the dangers of the “malicious use of AI”. This was on the same day that UK Prime Minister Rishi Sunak, launched the AI Safety Unit, telling his audience: “I genuinely believe that technologies like AI will bring a transformation as far-reaching as the industrial revolution, the coming of electricity, or the birth of the internet… But like those waves [of technology], it also brings new dangers and new fears.”

His speech echoed some of the conclusions of former PM Sir Tony Blair and former foreign secretary Lord Hague in their joint report, published in June last year, ‘A new national purpose: Innovation can power the future of Britain’, which urged the building of foundational AI-era infrastructure as part of a more strategic state and how we plan for the future. They stressed the importance of “retraining and lifelong

learning, issues that will become of huge importance for future economic prosperity”, urging all political parties to address this with the “necessary speed and sense of priority, in a period of dramatic change and opportunity that has already begun”.

EDUCATIONAL EYE

To some extent these national and global developments reflect what canny educationalists have been saying for some time. Sir Anthony Seldon, the prolific political biographer and current head of Epsom College, as long ago as 2018 in The Fourth Education Revolution (coauthored with Oladimaji Abideye) was urging educationalists to wise up to the likely consequences of AI for society, for humanity and the implications for education.

So if AI has not featured in the deliberations of your school board in the past year or so, it should have done and chairs should be looking to heads to ensure that it does this year. Many schools are commendably ahead in this area but if that is not the case in your school it’s important not to be left behind.

ALL CHANGE

AI is spoken of as the solution to teacher shortages, an aid to pupil and teacher wellbeing, something which can revolutionise assessment and administration in schools, bring about

Durell Barnes

personalised learning, an end to school life punctuated by the physical movement of pupils at regular intervals to the sound of bells – and much more. And it is feared for all of those things, with profound implications for how we run schools and the role of the teacher in the digital age. And yet, even though they are going to be making key strategic decisions in this area, many governors don’t know exactly what AI is, unless they have had reason to come across it in their own lives, and many more don’t know how it might apply to schools in general and to their own school in particular.

BRIGHT FUTURE?

The future is exciting but uncertain and the opportunities are equalled (in some eyes) by the risks. But if it is true that in education AI can offer better personalised assessment of pupil learning as a starting point, it’s difficult to understand why it is not more widely in use in schools. Some of this is linked to inexperience in ed tech, some to expense, some to teachers’ fears about the use of AI in teaching as well as learning.

The government has already indicated that it sees AI as key to resolving teacher workload issues in the announcement of the £2 million grant to Oak Academy to develop planning tools for teachers by using AI. As the education secretary Gillian Keegan said when announcing this: “Whether it’s drafting lesson plans or producing high-quality teaching resources, I am confident that by tapping

into the benefits of AI we will be able to reduce teachers’ workloads so that they can focus on what they do best – teaching and supporting their pupils.”

If this is to become the norm in the state sector, independent schools will want to be ahead in this area, and the development of AI-led teacher resources offers individual and groups of schools (and arguably the whole sector) some brilliant opportunities to form independent/state school partnerships.

What governors need to do is to reassure themselves that someone in their senior team is leading thinking about this in the school, can give a clear account of what the school is and is not providing, what it is and is not aiming to provide in the future, what these are going to cost, and how they are going to take the school community with them in this area. As for any other area of strategic development, governors will want to see success criteria and progress milestones.

Al Kingsley, chief of NetSupport and a member of the DfE’s regional schools directorate advisory board for the East of England, who writes and speaks extensively about ed tech and governance, in My School Governance Handbook, quotes the co-host on his EdTech Shared podcast, Linda Parsons, who wrote: “Don’t start writing a digital strategy until you have tailored your school’s digital vision.”

I would go further and urge the creation of a digital communication plan. And schools which have embraced

“Governors will be interested in the sense of direction and knowing what they can do to support developments. To do so, they need to understand what AI is and be, however amateur, users themselves.”

developments in this area most effectively have not only invested in technology but also extensively in ongoing training to ensure that staff are appropriately skilled to work confidently with AI, so you’ll want to know what the digital training plan is and what its continuing (not oneoff) costs wilI be.

No school can embark on any of this until a plan is in place and has been costed and communicated. And it’s by no means certain that all schools will embark on this soon. But governors will be interested in the sense of direction and knowing what they can do to support developments. To do so, they need to understand what AI is and be, however amateur, users themselves.

Durell Barnes is head of governance for RSAcademics.

People like us

The social profile of governors has changed little over the years and, in changing times, is your governing body doing all it can to reflect the make up of the people it serves? Mike Buchanan digs a little deeper

Most governing bodies of feepaying schools in the UK are made up of people like me: white, male, 50-plus years old, highly educated, affluent and from a narrow range of backgrounds and professional experiences. A survey covering statemaintained schools by the National Governance Association (NGA) found that 93% of respondents were white and that this proportion has hardly changed over the past 20 years. According to the NGA, just 1% are from mixed or multiple ethnic groups, 3% are Asian, 1% are black, 91% are aged 40-plus and 99% are aged 30-plus.

I don’t think these statistics are collected for independent schools in the UK, but they should be, and I’ve no reason to suppose they would differ in any substantial way. In other words, most schools are largely governed by people like me.

So what? I consider myself to be open-minded, thoughtful and inclusive in the way I behave so, given this, surely the most important thing I bring to the boards I sit on are my skills, knowledge and experiences gained over many years working in and with schools across the world. Surely these characteristics are more important than someone’s background. Diversity is a nice-to-have, but let’s not have the tail wagging the dog. This is exactly the argument I have encountered in 2021 when working with governing bodies.

“Some things must be changed post-pandemic and the place of equality, equity, diversity and inclusion as a central feature of our schools should be one of the changes.”

ALL CHANGE

Many things will automatically change as a result of the pandemic. Some things must be changed post-pandemic and the place of equality, equity, diversity and inclusion (EEDI) as a central feature of our schools should be one of the changes. And it must be led from and by the governing bodies of our schools.

There are many business-led reasons why greater diversity and inclusion are positive steps for schools to take, not least that employees and students in those schools will have a richer experience, contribute more, and achieve more highly as a result. If you need a rational argument for change then this is a good one. Alongside this is the emotional, moral argument. As a governor of a school, would you set out with the intention of making people in your school community feel excluded, unheard, unseen, unsafe, untrusted, unvalued and lacking respect for who they are? In other words, feeling as if they do not belong. I hope the answer is “no”. Nonetheless, this is the reality for some students and their families in our schools.

NO MORE LIP SERVICE

Diversity and inclusion are not ‘niceto-haves’. They are the foundation upon which positive, productive and joyous communities are built. For too long we have paid lip service to the idea of their importance and waited in hope that the statistics might naturally evolve over time. This strategy of hope over action has failed too many people in our care: colleagues, students and their families. Some schools have set out deliberately on a different path, often driven by a combination of enlightened head and chair.

A good starting point is for the board members to explore their individual understanding of the terms and come to a shared language. This process takes time and careful exploration; it may be best facilitated by an outsider. I find it ironic

that as a white, privileged, older man I am increasingly being asked to talk with boards about diversity and inclusion. I am told that’s because I can provide a degree of psychological safety and, hence, prompt an open conversation. This fear of ‘getting it wrong’ is a powerful driver of hesitancy and inaction. So how might a board start such a conversation?

GET TALKING

In order to promote productive dialogue, governors might start by exploring:

(i) How employees, students and parents experience inclusion as well as their own perspectives, and

(ii) Begin to outline a vision for the future based on these findings and their agreed common language. In other words, governors might address:

• Why EEDI matters and to whom.

• The role of governors in leading on EEDI.

• What EEDI mean to the employees, students and parents.

Coming to your own, visceral definition of the terms is a crucial step in bringing good intentions to life in your school. These are the litmus tests of future success. Recently, a board I worked with came up with this agreed understanding:

• Equality = treating people as equals over and above statutory requirements.

Mike Buchanan

• Equity = recognising different starting points and removing their impact by positive actions.

• Diversity = recognising all the differences that any group of people represent and the benefits of these differences.

• Inclusion = an emotional response to feeling respected, valued, safe, trusted and having a sense of belonging.

The board also agreed that ensuring that all parts of the school community (students, employees, families, governors and supporters) should feel included and that this goal should drive the activity of the school from the board downwards.

NEW GOALS

In order to achieve this intention, the board set out the ambitious goals below and now plan, with the school leaders, to co-create and support the steps required to make rapid progress towards these goals:

• There should be no gap in attainment between students which arises only from their background.

• Students, employees, families and governors should feel included.

• The curriculum should be inclusive as reflected in the two bullet points above.

• Adults should report confidence in their ability to manage EEDI without fear.

• Students and employees should feel safe and safeguarded when reporting on their degree of inclusion.

• Students and employees should report a sense of fairness in access to and allocation of opportunities.

BE PRACTICAL

There are many practical steps that follow from such a statement of intent, from challenging mindsets and tackling systemic biases, to agreeing measures of progress. Proper investment of time and other resources is also needed. Crucially, where schools are being successful it is because they have ensured that their approach is part of their culture. Where schools have not yet had success it is typically because EEDI is seen as an addon, is tokenistic and formulaic. Importantly, governors should be

“Where schools have not yet had success it is typically because EEDI is seen as an add-on, is tokenistic and formulaic.”

seen to be intentionally leading and not merely supporting steps towards greater inclusion and diversity as shown by who is on the board. However difficult, this means actively seeking to ensure the board has a mix of genders, ethnic, social, educational and professional backgrounds, as well as other protected characteristics, and a wide, balanced range of ages so that the phrase ‘people like us’ becomes a positive affirmation of inclusive practice rather than an accusation of exclusion.

Mike Buchanan is the founder of PositivelyLeading and was formerly the executive director of HMC.

Do the right thing

Charlotte Melhuish discusses how schools should respond to claims of discrimination and the key considerations for governors

Perhaps reflective of broader global trends, schools have seen an increase in former pupils reporting their experiences of discrimination at school. Some of these experiences relate to incidents that are alleged to have taken place many years ago, whereas others are more recent. In this article, we explore the issue through a fictional case study.

CASE STUDY

The chair of governors of the Red School receives an email from a former pupil (who left last academic year) stating that he was subject to racism while at the school and that “he does not wish any other pupil to be subject to such discriminatory behaviour”. The former pupil names the alleged perpetrators, some of whom are still pupils at the school. He alleges that teachers did not take appropriate action at the time to deal with the behaviour. He has also shared his concerns on social media, to which other alumni have responded, suggesting there is a culture of racism at the school.

WHAT STEPS SHOULD THE SCHOOL TAKE IN RESPONSE?

The most important, overarching principle is that all allegations of racism should be taken seriously – racism has no place in society or schools. Staff and governors are in a front line position to encourage and maintain an equal and inclusive culture in school, and respond appropriately and robustly if incidents arise.

“The most important, overarching principle is that all allegations of racism should be taken seriously – racism has no place in society or schools.”

• Gather facts – Given the potential for police involvement (see below), the chair should ask a member of the senior leadership team to gather sufficient information to establish the broad facts. For example, what has the former pupil alleged? Was the school aware of the incidents at the time and, if so, are there contemporaneous notes of the action taken in response? Have the alleged perpetrators been identified by the victim(s) online, and which of these are current pupils? These factors will help to determine the next steps.

• Take advice and liaise with other agencies as needed – The chair or head should consider whether to take legal advice at the outset, given the seriousness of what is alleged and the potential implications (including potential reputational damage to the school if the response is not properly and sensitively handled). Discussions should also include whether to liaise with external agencies, such as the police (if a crime may have been committed) or social services (if there are safeguarding concerns about a child or young person).

As for all serious cases, the school may wish to refer to the non-statutory guidance from the National Police Chiefs’ Council ‘When to call the Police, Guidance for Schools and Colleges’, which provides guidance to schools when considering contacting the police. The guidance explains when an incident is considered to be a hate incident (which includes when the victim or anyone else believes the incident was motivated by hostility or prejudice based on race), and also when it’s considered to be a hate crime.

Whether the chair or head reports the matter to the police is a matter of professional judgement taking into account all the factors in the guidance, the outcome of the school’s initial fact-finding exercise and all relevant circumstances.

Where the police are involved, the next

steps will, to an extent, be led by them. This does not completely prohibit a school-based investigation but the school should liaise closely with the police regarding timings to avoid prejudicing any police investigation. If the police don’t need to be involved (or where the police confirm the school may proceed with its own internal investigation), the chair or head should ensure the schoolbased investigation is conducted in accordance with school policies.

• Alleged perpetrators who are current pupils – The school has a duty of care to its current pupils, which includes the alleged perpetrators. The head should therefore ensure that steps are taken to monitor these pupils and, where necessary, that appropriate arrangements are put in place (for example, if there’s a risk that they may be bullied or targeted themselves, particularly if the allegations have been shared online). Depending upon a pupil’s age, this may require the parents’ involvement. If the outcome of the school’s investigation confirms that current pupils were acting in breach of school policy and displayed inappropriate discriminatory behaviour, the head may impose sanctions in accordance with the school’s behaviour policy. The chair should be informed of the outcome of the school’s investigation.

• Preparing a response – The chair’s

Charlotte Melhuish

“Whether the chair or head reports the matter to the police is a matter of professional judgement taking into account

all the factors in the guidance, the outcome of the school’s initial fact-finding exercise and all relevant circumstances. ”

response to the former pupil should be approached with care bearing in mind the sensitivity of the allegation and that any response may be shared by the former pupil in a public forum, for example, via social media. PR and/or legal advice should be sought as appropriate. Any disciplinary action taken against current pupils should not be disclosed to the former pupil.

• Social media – If the allegations are being shared publicly on social media, the chair or head should ensure that staff have been advised not to respond to any public or press interest (including responding to comments made by alumni), but direct all

communications to a designated central point of contact in school who has been provided with clear guidance on an appropriate response (following PR advice, as required). PR and/or legal advice should be sought if the school is considering taking steps to remove the social media post and/or restricting any further comments from others.

• Raising awareness/teaching – The chair and head will no doubt be aware that there is always more that can be done to promote and improve a culture of equality. This should include ensuring senior leadership takes a proactive approach in considering what more can be done ‘on the ground’ and what lessons can be learned as a result of this allegation. For instance, it may be appropriate to involve pupils by asking them what they feel should change (such as via a pupil committee); ask senior leadership to speak with staff about their experiences; review the curriculum and PSHE lessons; and set up an action group of staff who can drive forward any proposed changes.

WHAT ARE THE KEY CONSIDERATIONS FOR GOVERNORS?

While senior leaders will handle the operational on-the-ground response, governors will have a key strategic role in responding to and managing such incidents, not least as they have ultimate

responsibility for ensuring appropriate action is taken where it is alleged that there is (or was historically) racism/ discrimination in the school. For instance:

• Governors should hold the senior leaders to account in ensuring serious allegations are handled correctly, and ensure they are confident staff have the appropriate training and resources to do so.

• Bullying records should be reviewed for patterns of racist incidents.

• If a culture of racism/discrimination in the school has been found to exist, governors may want to consider whether to commission an independent review to identify issues and advise on ways to improve the culture of the school going forward.

• If the school is a charity, governors (as trustees) will need to consider whether to make a serious incident report to the Charity Commission. The Commission has guidance online which summarises the relevant factors, such as whether the incident results in or risks significant harm to the charity’s beneficiaries (that is, pupils/former pupils), and/or harm to the charity’s work or reputation. Ultimately, it is the responsibility of the trustees to decide whether an incident should be reported based on the incident meeting the seriousness threshold. If governors decide not to make a report, the reason should be recorded appropriately (for example,

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in meeting minutes). If the Commission later becomes involved, trustees will need to be able to explain why they decided not to report at the time.

• Should more be done to hold leaders to account for diversity, equality and inclusion more generally? Governors may wish to consider having a designated governor who takes the lead in this area, and reports back to the wider governing body periodically.

WHAT ARE THE WIDER IMPLICATIONS FOR THE SCHOOL?

Failure to create and maintain a culture of equality can have additional wider implications for the school, including:

• Legal and regulatory requirements –There are various legal and regulatory requirements for independent schools relating to unlawful discrimination and promoting mutual respect and tolerance (for example, Parts 1 and 2 of the Independent School Standards Regulations 2014 and obligations under the Equality Act 2010). On inspection, inspectors may look

at whether incidents of bullying or prejudiced and discriminatory behaviour are common and whether these are indicative of ineffective safeguarding practices.

It is for the governors and head to satisfy themselves that the school is meeting these standards, bearing in mind that inspectors may challenge both senior leadership and governors to reflect upon whether they are doing enough to promote equality and the effectiveness with which the school deals with discrimination, including racism, in all its forms, particularly in light of Independent Schools Inspectorate’s new inspection framework with its central focus on pupil wellbeing. Schools which are found to be failing to encourage respect for others and/or to deal effectively with racism risk not meeting the independent school standards and, therefore, are at risk of sanctions issued by the Department for Education.

Heads and governors should therefore ensure the school is regularly reviewing its procedures and relevant policies

such as those regarding equality, antibullying, behaviour and the staff code of conduct; that these are being effectively implemented in practice; and that these are contributing to the creation of an inclusive ethos and culture across the school.

• Legal claims – Parents, pupils or alumni may seek to bring legal claims against a school in relation to discriminatory behaviour, including claims for discrimination, negligence and/or breach of contract. The merits of such cases are of course dependent upon the facts, but even cases without merit can be time-consuming and costly for the school to respond to.

It's therefore important for heads and governors to ensure the school takes active measures to promote and maintain a culture of equality, and effectively and promptly deal with any incidents of alleged discrimination if they arise. This commitment should not simply be set out in a policy, but actively implemented in practice.

Charlotte Melhuish is a partner in the education team at law firm Stone King.

Think strategically

Craig Lawrence outlines the reasons for continually revisiting your school’s strategy

You’ll often hear people being told that they need to think more strategically, usually when they’re faced with a significant problem that threatens their organisation. But waiting until you’re facing an existential threat before you start to think more strategically is probably too late. That’s why it’s no secret that the most successful organisations make a habit of thinking strategically as a matter of routine. But what is strategic thinking, why is it so important and how do you do it?

WHAT IS STRATEGIC THINKING?

Put simply, strategic thinking is about shifting your focus from what’s happening within your organisation to what’s happening around it, now and in the foreseeable future. In doing this, you’re trying to identify the opportunities that you might be able to exploit as the environment around you changes, as well as the obstacles that you’re going to need to overcome to remain successful. The Harvard Business Review’s guide to thinking strategically puts it neatly: “When you think strategically, you lift your head above your day-to-day work and consider the larger environment in which you’re operating.”

Max McKeown, a strategy author, concurs but also believes that “becoming a strategic thinker is about opening your mind to possibilities”. This is an important aspect of effective strategic thinking because all too often if we bother to think about the future at all, we have a habit of viewing it through rosetinted spectacles, assuming it will unfold

“It’s no secret that the most successful organisations make a habit of thinking strategically as a matter of routine.”

in the way that we want it to. We can be forgiven for this because we are born with a natural optimism bias, but the problem is that the future has a habit of unfolding in a way that constantly surprises us. Indeed, the future is so uncertain and unpredictable that the formal study of the subject is now known as ‘futures studies’, with the pluralisation of the word reflecting the fact that there are many alternate possible futures, all of which could present opportunities, as well as obstacles.

WHY IS STRATEGIC THINKING IMPORTANT?

Organisations that are adept at strategic thinking identify possible opportunities and likely obstacles well before they materialise. Not only does this mean they can prepare themselves well in advance, but it also means they can start doing things to help shape the future so the outcome that most benefits them becomes more likely. Returning to McKeown, this is why he believes that “becoming a strategic thinker – a strategist – is about getting better at shaping events” and why Harry Yarger, author of the seminal The Little Book on Big Strategy, believes that the aim of good strategy is to “create more favourable future outcomes than might otherwise

exist if left to chance or the hands of others”. So, if your school is good at strategic thinking, then not only will it be able to identify and then exploit opportunities that others miss, but it will also be able to make these opportunities more likely to materialise.

To take an example many will be familiar with, in the early 2000s, Charlie Ward, an engineer at Amazon, noticed that people were becoming increasingly time-poor. In 2005, Amazon exploited the opportunity it felt this presented by launching Amazon Prime, a service deliberately aimed at people who are more time-sensitive than price-sensitive. Customers didn’t ask Amazon to provide

Craig Lawrence

Diagram 1: The Futures Cone. Image reproduced by permission of Dr Joseph Voros (see: thevoroscope.com/2017/02/24/the-futures-cone-use-and-history)

the guaranteed two-day delivery service but, by 2021, the scheme had more than 200 million paying members globally, establishing it as one of the world’s biggest online subscription services. It’s a similar story with obstacles. Those organisations that have looked to the future and identified a possible challenge that might need to be addressed will be better placed to overcome it, or even shape the future so that it’s less likely to materialise.

HOW DO YOU DO STRATEGIC THINKING?

As we’ve already established, effective strategic thinking requires us to try to understand what the future might look like. But as we’ve also established, there are lots of different possible futures. The trick is therefore to try to identify those we should focus on. The Futures Cone illustrated in Diagram 1 can help with this. Developed by Joseph Voros in the early 2000s, it identifies alternative futures that could unfold, including the ‘projected’, ‘probable’, ‘plausible’, ‘preferable’, ‘possible’ and ‘preposterous’. Describing what each of these might look like in, say, five years’ time can be a powerful way of starting to understand how the environment in which your organisation operates might change. But to do this in an informed way, you need to develop a better understanding of what’s happening around you, both at the global level and at the more local level, specifically the sector in which your organisation operates.

At the global level, a good starting point is to consider the megatrends that seem to be shaping the world in which we all live and work. There’s lots of analysis on this and even a quick online search would identify things like: climate change and increasing electrification; global population increases; greater urbanisation; the increasing ubiquity of artificial intelligence and machine learning; the blurring of work/life boundaries etc. Thinking more locally, the best way to understand what’s happening in the education sector is to become

super-inquisitive and to hunt for, rather than gather, information about emerging trends affecting the sector by reading more widely, listening to expert podcasts, attending conferences, following bloggers etc.

Once you’ve spent time in the ‘understand’ phase, you can then apply a technique called ‘visioning’ or ‘scenario planning’ to describe what you think some of the alternative futures might be as they relate to the world in which your organisation exists. Going back to the futures cone, a good place to start is by describing what you think the ‘probable’ future might look like, so the one that you think is most likely to unfold based on everything you’ve read, heard or seen. It can be quite difficult to do this if you’ve never done it before, but applying the PESTLE headings can help, where the acronym stands for ‘political’, ‘economic’, ‘social’, ‘technological’, ‘legal’ and ‘environmental’. The idea is that you take each heading in turn and think about how the trends and changes you’ve

identified under that heading (both global and local) will shape the sector.

To take a topical example, under the ‘political’ or ‘economic’ headings your description of the ‘probable’ situation in, say, five years’ time might include something like: “having won the general election in 2025, the Labour government imposed VAT on school fees and removed the exemption from business rates that charitable fee-paying schools enjoyed”. Once you’ve described it in a few paragraphs, you can go back to each of the different headings to try to find opportunities you could exploit and obstacles you might need to overcome, capturing them on an impact/likelihood matrix such as that illustrated in Diagram 2 as this will help determine which to focus on, with the opportunities denoted by a (+) and the obstacles denoted by a (–). As you do this, it helps if you have an idea of what you want your school to be like in the time frame you are considering as this helps you identify how specific opportunities might help you achieve

Diagram 2: Identifying the greatest opportunities and the biggest obstacles/threats

(Source: The Quick Guide to Effective Strategy)

your desired endstate (think of them as the ladders in the game Snakes and Ladders).

It's then worth considering the different actors, or stakeholders, that might impact on your environment and ascertaining whether, in the alternative

future you are examining and, given the endstate you are trying to achieve, they are likely to represent opportunities (perhaps for collaboration) or obstacles (because they are likely to oppose you).

Plotting them on a ‘power/interest’ matrix like that in Diagram 3 can help

you determine which are likely to be most important to you, where (+) or (–) are used to denote whether the stakeholder is likely to support or oppose you.

Having applied your strategic thinking skills to develop an understanding of how the future might unfold, you are well placed to position your organisation for success by developing a strategy that joins the dots, exploiting the opportunities you’ve identified and overcoming the obstacles, as well as shaping the future where you can make the former more likely to materialise and the latter less so. However, the chances are that although you might get some of it right, the future will always surprise us so it’s important that you also consider the ‘plausible’ and ‘possible’ futures, not just the ‘probable’, and that you’ve thought about what you would do if they were to unfold.

Once you’ve started to implement your strategy, remaining attuned to what’s happening around you and being prepared to adapt your strategy when it becomes apparent that your predictions about the future were incorrect is imperative. That’s why the most successful organisations create time for strategic thinking and do it regularly – something worth thinking about as, having read this article, you switch focus back to the dayto-day operations of your school.

Craig Lawrence is founder and managing director of Craig Lawrence Consulting.

Diagram 3: Stakeholder mapping using a power/interest matrix

(Source: The Quick Guide to Effective Strategy)

Employee tax risks

Successful independent schools depend heavily on their staff and ensuring they offer competitive packages with a clear understanding of the tax treatment. The net reward for employees plays a pivotal role in this equation.

Additionally, it’s important to note an increase in HMRC activity as it has expanded its compliance team by more than 3,000 additional personnel. Given this heightened scrutiny, it is advisable to maintain a strong grip on your responsibilities regarding employment-related taxes, ensuring that your institution has well-established and resilient processes, policies and procedures in place.

This article looks at some of the key employment tax areas that frequently appear within the setting of independent schools.

OFF-PAYROLL WORKING

This is an area of concern that HMRC has been focusing on extensively, and independent schools are no exception. Independent schools frequently engage off-payroll workers either directly or indirectly via intermediaries, meaning invoices are not subject to tax and National Insurance Contributions (NIC) deductions. Typical examples of off-payroll workers regularly engaged by schools include peripatetic teachers, sports or music coaches, as well as finance or IT staff and these types of working arrangements can therefore pose a potential risk.

To reduce this risk, independent schools should have a keen understanding of the contractual and working arrangements in place with each offpayroll worker, including how they are engaged (for example, directly, through limited companies, or via agencies/umbrella companies) in order to determine their obligations. Where relevant, they should exercise due diligence and establish well-defined processes and procedures for offpayroll workers, particularly in cases where personal service is involved. This

employment-related tax matters

ensures that they conduct thorough status assessments when necessary and safeguards them against the potential consequences of failing to deduct taxes and NIC correctly when required.

The first step is to understand the contractual nature of how the contractor has been engaged and we have summarised the most frequently seen arrangements below.

• Direct engagement

If a school hires a contractor directly (with no intermediary) it needs to be comfortable that it has correctly determined if the worker can be treated as off-payroll for tax purposes. Wider employment law implications should also be considered. If an incorrect employment status assessment is made, meaning the workers payments are not subject to tax/NIC, the school can be held liable for any underpayments of tax and NIC.

• Agency

If the school uses a recruitment agency to hire a contractor, there’s still the requirement if the worker is not an employee of the agency to determine status. However, narrower tests for status of supervision, direction and control applies and the school can be liable for mistakes made in certain circumstances.

• Personal service company

If an independent school contracts for the provision of services of a worker through an intermediary (such as via a limited company), the school needs to consider if the additional rules under the off-payroll regulations (often coined ‘IR35’) apply.

Since 6 April 2021, additional rules have applied, however these are only applicable to those independent schools deemed to be ‘medium and large’ businesses. This is likely to capture most schools as it is based on meeting at least two of the following conditions:

• An annual turnover of more than £10.2 million.

• A balance sheet total not exceeding £5.1 million.

• More than 50 employees.

Schools which form part of a larger group will need to examine the turnover and value of assets for the entire group of schools.

If the IR35 rules do apply, then the school needs to undertake a status assessment for employment tax purposes and issue a Status Determination Statement (SDS) for each worker. Where a worker is engaged via an agency, the SDS should also be issued to the agency.

Should a worker be assessed as a ‘deemed employee’ for tax purposes, each individual should be placed on the school’s payroll (or agency’s payroll if it is the fee payer) for tax and NIC purposes.

“Independent schools should have a keen understanding of the contractual and working arrangements in place with each off-payroll worker, including how they are engaged.”

Susan Ball outlines the potential pitfalls of managing

Susan Ball

ACCOMMODATION EXEMPTIONS AND TREATMENT OF UTILITIES

Wherever a school provides accommodation to employees, the starting point is that the accommodation is a taxable benefit unless an exemption applies.

However, there are two main exemptions that are relevant in the independent schools sector. Broadly speaking, the exemptions will apply where the accommodation is:

• Necessary for the proper performance of the duties, or

• It is both customary to provide the accommodation and it is provided for the better performance of duties.

HMRC typically acknowledges that in the case of boarding schools where staff are accommodated on or near the premises, then the exemption can apply to a proportionate number of staff undertaking boarding house duties/ pastoral care duties.

Note the reference to ‘proportionate’. Schools looking to rely on the exemption linked to pastoral care duties performed by boarding house teachers, will need to be able to demonstrate adequately to HMRC that sufficient on-call duties are performed, ideally supported by call out records. For example, the odd evening of late-night working is not enough to meet the requirements for exemption. Ensuring the school knows who qualifies for any exemptions and why, as well as how to calculate the benefit where it is due and maintaining a record with supporting evidence is key.

“It is often common for the employer to give a discount on some or all of the fees payable by an employee for his or her children to attend the school.”

Where the exemption conditions are met, the accommodation will benefit from a tax exemption. But independent schools should not forget about any related items, for example utilities.

• The payment of council tax or utility bills (specifically council tax, water charges or sewerage charges) are not taxable if provided in connection with tax exempt living accommodation. In other cases, they should be reported on the P11d or via payroll; and

• Utilities that will not benefit from tax exemption include heating, lighting, cleaning and repairs. Where the employee is in exempt accommodation however the taxable benefit of expenses on these utilities is limited to 10% of the employee’s net earnings, minus any contribution the employee makes towards the cost.

In some cases, schools may have previously agreed an approach with HMRC regarding paying utility costs, particularly where an individual utility cost cannot be attributed to individual properties. It is important that this agreement is retained somewhere safely in case of HMRC review and, additionally, consideration should be given to any uplift in costs each year (depending on how this is calculated in light of the ongoing increase in household costs). The treatment of utility costs has been of particular interest to HMRC recently when undertaking PAYE compliance reviews.

Lastly, don’t forget that furniture, cleaning or gardening costs may also need to be considered and reported.

OTHER BENEFITS

There are many other areas which impact independent schools – we have covered a few in brief below.

School fee remission – It is often common for the employer to give a discount on some or all of the fees payable by an employee for his or her children to attend the school. The amount of the discount can result in reporting requirements, and tax and NIC liabilities. However, provided

employees pay at least 15%, no benefit in kind will arise. It’s worth noting that this only applies to normal school fees. Any additional benefits provided (for example, music classes, special trips etc) are not included within the 15% agreement.

• Canteen exemption – where meals are provided to staff, ensure they are available to all staff to attend, and that the dining room is not open to the public.

• National Minimum Wage – from 1 April 2023, the National Living Wage rate (payable to workers aged 23 and over) rose from £9.50 to £10.42 an hour. Workers aged 21 and 22 are now entitled to £10.18 an hour. In the future, there could be another nearly 10% increase in hourly pay if the government takes forward the Low Pay Commission’s recommendation to bring the threshold for National Minimum Wage down from 23 to 21 and recent prime minister comments to at least £11 per household (an additional 5% increase). It’s important for independent schools to understand what category of workers they have under the rules to determine what calculations need to be undertaken to make sure they don’t fall below. This is particularly relevant for low earners, including gap year students who might also be provided with living accommodation.

• Uniform provision – where employees are provided with uniforms (for example, IT support staff, sports teachers), the employee is entitled to a full tax deduction for the cost of the uniform only in certain circumstances. To qualify as uniform the clothing should be specialised and recognisable and identifies the wearer as belonging to a particular occupation or employer. A common case of clothing being regarded as uniform is for the logo of the school to appear on the clothing, however, the logo must not be removable from the clothing and appear on each item.

Susan Ball is a tax specialist and partner for accountancy firm RSM.

Beware of fraudsters

Procedures for dealing with apparent suppliers must always be robust as new forms of fraud continue to provide ingenious tests for schools’ protection.

There is no such thing as being too careful when it comes to avoiding fraud in the education sector. Don’t worry, it’s not just you that’s being targeted, you’re in good company. All schools are considered easy prey for fraudsters and I suspect you will have already seen attempts at banking fraud at your school – and hopefully you won’t have lost any funds. Despite most of us seeing – and stopping – some kind of fraud attempt, fraud losses incurred by the education sector continue to increase significantly. Across the UK as a whole, the Office of National Statistics estimates there to have been around 3.5 million fraud offences in the year to March 2023.

Despite it being common knowledge that the risk of fraud is high in the independent sector, nearly all schools I’ve spoken to have yet to put all their staff through fraud training. It’s not just the finance team that need awareness training, everyone with external email access should receive it.

As fraudsters get more sophisticated and organised, we all need to be aware of the risks to the data and the funds our schools control.

The majority of fraud losses in the education sector are in the form of invoice fraud.

INVOICE FRAUD

We’ve probably all seen fake invoices sent in the post or by email and most of us have systems in place to recognise that these are not expected, making these

“As fraudsters get more sophisticated and organised, we all need to be aware of the risks to the data and the funds our schools control.”

Ian Buss reports

attempts less successful than they were a few years ago.

These days, fraudsters have notched invoice fraud up a level. They are hacking email accounts (which could be either your account or one of your supplier’s accounts). Once the account is hacked, the fraudster waits patiently for the supplier to send you an (expected) invoice. At this point they step in and intercept the email, changing the invoice bank account details. While your school may have systems in place to control the change of a supplier’s bank account, these types of fraud still happen, and the losses can be huge.

There was a well-publicised case in summer 2019 of a primary school on the south coast losing £19,000 of funds raised by parents to improve playground facilities. The school was expecting the invoice, but fraudsters had hacked an email account and changed the account details. The money has long since been transferred abroad.

The school had a system in place to identify changed bank accounts for suppliers, but this invoice was from a new supplier and the bank details weren’t set up on the school’s system prior to receipt of the invoice.

When I become a ‘supplier’ to schools, the vast majority of schools will email me a new supplier form. Worryingly, only one school called me after I’d completed it to check the emails hadn’t been hacked and my details altered.

Fraudsters are aware that schools usually call to check any banking details that have been updated and have started to pre-empt. I’ve seen losses where a fraudster has emailed the school from the supplier’s hacked email account with a change of telephone number. After a week or two, the fraudsters can send a doctored invoice knowing that the phone call to check the banking details will be made to the new number they supplied just a few weeks earlier.

CHIEF EXECUTIVE FRAUD

Getting an email purporting to be from

the chief executive (or head) requesting an urgent payment is an extremely common and frequent occurrence in schools. Mostly these are spotted as the language used in the email doesn’t match that of the person the email is supposed to have been sent by. Again, fraudsters are getting more sophisticated. Instead of creating a similar email address to their target, they are now hacking the email accounts of the school and watching email conversations happen. This gives them the opportunity to learn the language used in order to make their fraudulent request for transfer appear more genuine.

We might think that this wouldn’t happen to us, but up to a quarter of all fraud losses in business happen this way.

A more recent development of this type of fraud is a social engineering method known as ‘deepfake voice fraud’. This is when a fraudster uses technology to imitate and fake the voice of a senior leader such as the head. This has already seen a large PLC lose around £250,000 through staff being convinced they were talking to their real chief executive. It’s only a matter of time before this type of fraud becomes more mainstream.

VISHING

Vishing is a type of cyber attack that uses voice and telephony technologies to trick targeted individuals into revealing sensitive data to unauthorised entities.

Ian Buss

“Consider which personnel in your school have access to external emails. With nearly everyone in schools having access, all staff need to be trained on the risks.”

It is common but is becoming more sophisticated with fraudsters using easily sourced information on their victim and their role to create belief that the victim is being called by a bank official or person in authority with the sole purpose to manipulate them into giving a fraudster access to computer systems or to transfer money to a fraudsters account.

Fraudsters are now using spoofing techniques to show a legitimate and known telephone number on caller ID systems to add credibility to their story.

PHISHING

Phishing occurs when criminals use scam emails, text messages or phone calls to trick their victims. So how do fraudsters get access to the IT system to enable them to hack an email account? Around

90% of successful fraud attacks start with an individual in your school clicking on a link in an email or web page that then installs malware.

Consider which personnel in your school have access to external emails. With nearly everyone in schools having access, all staff need to be trained on the risks. Many organisations test their staff on a regular basis by sending emails from an external unknown account that encourage them to click on links. This can be a good way of checking risks and identifying staff who may need refresher training.

MONEY MULES

Of course, when criminals are successful in stealing funds through fraud, they need a bank account to transfer it to. Banks continue to make it more difficult for criminals to set up accounts, so they need to gain access to existing ones. To do this they recruit ‘money mules’ and, more often than not, target children, often as young as 13 or 14, with social media adverts promising “easy money working from home” and “get rich quick” schemes. They offer them a small percentage of the cash if they let funds be transferred through their account.

The duped children think they might make some easy money. The reality is that they become a money mule – a criminal. Money mules risk prosecution, a prison

term and a criminal record, making a future career difficult.

PRACTICAL STEPS TO PROTECT YOUR SCHOOL

• Raise awareness of fraud and have clear procedures for supplier bank, telephone and email amendments (including registering new suppliers).

• Conduct regular fraud training and testing.

• Never assume a caller/emailer is your bank, supplier or a senior leader, regardless of how much they know.

• Remind staff – your bank will never ask for a full password or two-factor authentication codes.

• Use two-factor authentication for important logons (for example, email).

• Prevent malware – update all security patches on software, don’t use removable media, for example, USB sticks. Keep virus software and firewalls up to date.

• Consider awareness lessons for pupils on fraud, identity theft and money mules.

Most schools are effective at screening physical visitors, usually requiring signing in, ID and the wearing of a pass before being let through a locked access door. We need to apply at least the same vigilance to our digital visitors.

Ian Buss is director of Education Banking Consultancy.

Get rid of carbon

Nigel Aylwin-Foster continues his series on the decarbonisation of the school campus by looking at how to develop an effective plan

In the first of this three-part series, beginning in the autumn 2023 edition of Independent School Management, I looked at the purpose of developing an estate decarbonisation plan (EDP), and the relationship between sustainability more broadly (the UN’s 17 Sustainable Development Goals) and net-zero carbon and net-zero energy in schools. In this edition I’ll consider how an EDP is developed.

As a reminder, estate decarbonisation means ceasing to use or rely on fossil fuels for the operation of the school estate across all the estate’s heat, transport and power requirements. The purpose of an EDP is to lay out how a school intends to achieve this. Along the way the EDP will also cover how to reduce the estate energy usage as far as practicable, in itself a decarbonisation measure: however, the school’s main interest in this aspect is likely to be the reduction in operating costs.

GOOD PLANNING

A well-structured EDP requires careful study of the school estate – the plan is the output from that study. The planning process will require external expert support but some aspects of it will need to be determined by the school staff. Generally, the supporting consultant’s job is to analyse and present the options, including the varying impact of the relevant factors, whereas the supported school will need to decide on its preferred option(s), based partly on the consultant’s input but also on its own input where appropriate. For example, the school will need to determine its relative priorities between the net-zero endeavour and other competing calls on time and funding; and it will need to gauge the available annual budget for decarbonisation. Dialogue between the school and consultant is therefore important during the development of the plan.

Developing an EDP is an iterative process. The optimum overall net-zero engineering solution for the estate needs to be determined, then – working back from that – the plan to get there as efficiently and affordably as possible.

So, how does this work in practice? The EDP study starts with measuring the current energy usage and carbon footprint, as well as understanding the operation and intended future development of the estate, and any other factors that would impinge on the plan – for example the likely trajectory of future energy prices and government policy towards net-zero implementation. This establishes the baseline.

The study then needs to consider:

A. The energy efficiency measures available to reduce energy usage as far as possible and prepare the estate for conversion to low-carbon systems.

“The planning process will require external expert support but some aspects of it will need to be determined by the school staff.”

Nigel Aylwin-Foster

B. Options for the independent generation and storage of power on the estate, to reduce the estate’s reliance on grid power, thus also reducing operating costs and increasing estate resilience.

C. Engineering options for the conversion of the heat, transport and power assets at the school to low-carbon systems.

D. The integration and control of all the intended infrastructure changes, such that they work together to optimum effect for the school estate in terms of ease of use, and impact on cost and carbon emissions.

Note that the lettering (A-D) has been included for ease of identification on the EDP implementation diagram shown to the right; it does not imply a particular order of study in developing the EDP. In practice the EDP study team would need to be considering aspects of serials A to D concurrently. For example, the solution for heat (the defining issue in serial C, above) will depend to some extent on the options available for serials A and B. Conversely, the solution for serial B will depend to

some extent on the preferred option for the heating system conversion.

Careful consideration of serials A to D will enable the optimum overall engineering solution to be derived. It is then a matter of working out the most efficient programme to get from the current baseline to the overall engineering solution: this output constitutes the

“There’s no doubting that on most school estates operating costs can be reduced through efficiencies.”

decarbonisation plan.

Given that implementing the decarbonisation plan will entail significant capital outlay at a time when funds are inevitably short, the trick will be to derive a plan that enables progress in the short term without jeopardising the long-term objective. Any short-term projects should be selected based on meeting two criteria: that they will be enablers for the longer-term projects and/ or reduce operating costs. The diagram above encapsulates this. It is illustrative of the general idea – of likely trends, and not meant to be to scale.

The Prep Phase is focused on implementing serials A and B, and those elements of serial D that need to be put in place early on. It should normally start as soon as possible, given that there’s nothing to be gained by waiting. These measures should result in some reduction in operating costs, ideally leading to a temporary net benefit. However, the extent to which energy efficiency measures will save a school money is often exaggerated. There’s no doubting that on most school estates operating costs can be reduced through such efficiencies, but

Net-zero energy centre hot water tanks

they will not prove the panacea that some hope for and they will certainly not prove to be the net-zero silver bullet: sooner or later those fossil fuel systems will have to be removed.

The Major Decarbonisation Phase is focused on implementing serial C and the remaining elements of serial D that cannot be put in place during the Prep Phase. The start and end dates for this phase will depend on a combination of achieving regulatory compliance, the school’s scale of ambition and implementation of net-zero versus other priorities, finding funding and a cost-effective and affordable pathway, and engineering necessity. This phase might, therefore, start once the Prep Phase is complete, or it might overlap to some extent. It will depend on the factors and will vary for each school.

The projects in the Major Decarbonisation Phase are likely to lead to a net loss in terms of cash flow during their implementation, because of the high capex. In due course the net economic effect may well become positive compared to the base case of doing nothing. That rather depends on what happens to relative fuel prices, in particular grid gas versus grid power for any solutions based

around conversion of the heating plant to heat pumps, the latter being the most common technology option in schools. The good news is that the UK government has declared its intention to rebalance grid prices to render heat pumps more economically attractive, The challenge will be achieving that in a way considered fair and affordable by consumers. And, of course, reducing a school’s reliance on grid electricity (serial B) will help.

EDP BENEFITS

A well-crafted estate decarbonisation plan enables a school to determine how to achieve the following benefits:

• Operating costs savings and carbon reductions through greater estate energy efficiency.

• Reduced dependence on the national power grid and improved estate resilience, through reduced energy usage and generation of more of the required power on-site.

• Estate decarbonisation (the removal of fossil fuel systems) at whatever pace emerges from the supporting study.

• The avoidance of future costly errors by not stumbling into estate development mistakes that might not have been

“The UK government has declared its intention to rebalance grid prices.”

recognised without the benefit of a comprehensive plan.

The plan also provides budgeting clarity for the short, medium and longerterms and enables a school to tell all its stakeholders what it is going to do about tackling the hardest aspect of becoming net-zero, based on credible, authentic detail rather than generalisation and wishful-thinking.

LOOKING AHEAD

In the next and final article in this series, I’ll bring this process to life by offering insights based on case studies from schools that have already developed their EDPs.

Nigel Aylwin-Foster is the business development director for ReEnergise Projects.

Net zero Aerial view of a GSHP array

A matter of judgment

The Charity Commission has published a refreshed version of its guidance on investing charity money. What has changed – and do you need to act?

If your school has charitable status and has one or more investment portfolios, you will want to be aware of the latest version of the Charity Commission’s guidance on investing charitable funds (CC14). You should refer to it when next reviewing your investment policy (something you ought to be doing regularly anyway) or if you are setting out a policy for the first time.

The law on charity investment and how to access professional expertise hasn’t changed, so most schools will find that it doesn’t necessitate a revamp of their approach or policy. There are some changes of emphasis and terminology, though. The updated guidance is also shorter and, most people will find, clearer than its predecessor.

The guidance begins by reminding us that charity trustees’ principal duty is to further their charity’s purposes and reassures us that when it comes to investments, this will mean different things to different organisations. In other words, good governance comes first –sound decision-making by the governors to identify and describe what approach is best for your school, rather than a boxticking exercise.

PURPOSE-RELATED CONSIDERATIONS

A hot topic prior to the release of the refreshed guidance was the question of whether trustees were permitted to place significant restrictions on what type of businesses their portfolios might be

“If you are going to apply portfolio restrictions for reputational reasons, it’s important that the policy is applied consistently.”

Heather Lamont reports

allowed to invest in, even if there was a good chance that this would damage the financial returns from their investment.

In 2022, the well-publicised English High Court case known as Butler-Sloss focused on the scope for trustees to exclude carbon-intensive businesses. The outcome confirmed that such a policy would be consistent with trustee law, provided as ever that the trustees were able to demonstrate sound decision-making and why they believed such a policy to be in furtherance of the charity’s purposes.

Although this doesn’t represent any change in the law, the refreshed CC14 guidance recognises that trustees may exercise their own judgment on whether and how to restrict investment in any particular type of business if they feel that it either contradicts their mission or would put their organisation’s reputation at risk.

In practice most schools tend to take a light-touch approach when considering this aspect of their investment policy and do not seek to screen out large swathes of business activity. It is common to avoid tobacco stocks for reputational reasons, for example. Other specific areas of concern, especially for schools with a religious affiliation, may be alcohol, gambling, armaments or adult entertainment. But sensibly applied, such exclusions need not carry any assumption of noticeable damage to long-term financial returns.

If you are going to apply portfolio restrictions for reputational reasons, it’s important that the policy is applied consistently. This can be a challenge if you have pooled funds in your portfolio, which will be the case for most school investors. It’s easy enough to specify the criteria to exclude direct investment in individual company shares – say, ‘any business deriving more than 10% of its revenue from alcohol’, or ‘tobacco producers’ – but if you’re investing in So-and-So’s Emerging Markets Fund are the same criteria going to apply there? Probably not, so your reputation is still at risk. This is one reason why many schools

opt for one of the charity-specific pooled funds, as these each publish their own policies which can be applied throughout the portfolio, not just to ‘direct’ holdings.

The refreshed CC14 also makes clear that consideration of what types of business may or may not be excluded from the portfolio is far from the only approach that trustees may wish to apply. For instance, trustees may choose to integrate environmental, social and governance (ESG) issues into their investment strategy either to boost returns or protect their reputation. Indeed, this is something that good investment managers will be doing anyway because understanding these ESG factors has implications for financial risk and returns – so it’s worth asking your portfolio manager about.

Investors are increasingly aware that a policy on what’s allowed or not allowed in the portfolio might be good for your reputation, but it won’t change how the world works. The Charity Commission’s guidance therefore recognises that trustees may also be interested in how the investment assets are being used to advance the school’s purposes and reflect its values, and refer to this in their investment policy. This might be, for example, through action by their fund managers to drive real-world change on issues that matter to stakeholders such as climate change, inequality or mental health.

Heather Lamont

“Investors are increasingly aware that a policy on what’s allowed or not allowed in the portfolio might be good for your reputation, but it won’t change how the world works.”

ACCESSING PROFESSIONAL EXPERTISE

When it comes to selecting investment assets or managing a portfolio most schools will not have enough in-house expertise to do this themselves and the guidance expects that the great majority of charities will need to select a professional manager to take on this role.

Some schools will ask their chosen firm to manage a ‘bespoke’ portfolio of individual investment assets and/or pooled funds. It’s worth investigating how bespoke this really is, because it’s not the most cost-effective route to the investment market – you’re paying your manager directly to select funds for you, and you’re paying the managers of those third party funds indirectly. The loss of income and capital value over time that arises from this double layer of costs can be quite striking.

That’s easy enough to justify if you do indeed have needs that are unique, and if your portfolio reflects those needs. But many charity investors have found out that they have been invested for years in a model portfolio (so not really bespoke at all) which isn’t even a particularly good match for the distinctive priorities that charitable investors tend to have.

Indeed, the refreshed CC14 guidance notes that another way to access professional management is to invest in

a collective scheme such as a specialist fund available only to charities. You still need to be satisfied that the fund meets your school’s needs, so it’s important to understand the fund’s investment policy and objectives and how these align with your own policy. Fund information is readily available and it should be straightforward to compare different funds in the market and how they have performed, but don’t be afraid to ask questions of the manager before you invest and thereafter.

The benefits of these funds are well recognised and most boards will feel confident to select from this range without having to take professional advice on their choice. However, if you do want to seek advice about selecting a portfolio manager or a pooled fund, or on any

other aspect of your investment policy, then you should expect to pay separately for it: the Financial Conduct Authority isn’t keen on investment advice being ‘bundled up’ with fund management.

And CC14 notes that you still need to consider the advice objectively and do what is best for your charity, thinking about any potential conflicts of interest that affect an advisor. This could be an issue, for example, if the advisor is recommending that you use its own funds or services, without being able to demonstrate why those will serve your purposes better than others – common sense, and good governance, will tell you that such ‘advice’ is unlikely to be impartial.

Heather

Lamont

is a client investments director at

CCLA.

Next in line

Succession planning is the process of identifying the most important and influential job roles within your school and creating a sufficient talent pipeline to enable you to secure the future of the institution when the incumbents move on and, in the event of an unexpected departure, fill those posts at a moment’s notice. We also have a responsibility to the sector to provide the next generation of heads, principals and senior leaders.

Fans of Succession, Jesse Armstrong’s satirical TV drama, will be familiar with the issues encountered when a company, or sector, lacks a team with the necessary skillset to step up when needed. As a latecomer to the series and yet to reach the denouement, I am fascinated by the Roy family struggles. Judging by the level of expletives uttered almost every other word, successful succession planning is not as easy as it sounds. Identifying who stands next in line to fill your key positions, having the time and ability to mentor those waiting in the wings, while at the same time managing the day job, is a toughie.

GADDING ABOUT

Some school leaders appear to have time aplenty to visit every educational conference and event in the calendar and grace every panel and think tank. They wax lyrical about those colleagues and peers whose company they have most recently enjoyed, and seemingly swan effortlessly from presentation to presentation, picking up accolades for

“Some school leaders appear to have time aplenty to visit every educational conference and event in the calendar and

grace every panel and think tank.”

excellent leadership despite appearing to rarely set foot over their own school threshold. I am sure their reality is vastly different, but even to have the time to post all those event updates on social media is impressive. Their schools are successful. How can this be? Is it that they have already replaced themselves and delegated their role to the next in line? If so, their ability to organise is a thing to be admired.

Is it even possible to identify the next in line without running the risk of power struggles in the staff room? It’s no surprise to hear that schools are at their most vulnerable when critical roles are left vacant for extended periods. Skill gaps unsettle parents, they breed resentment in the team and put pressure on those staff attempting to fill the vacuum. Planning for the worst by identifying the best, and anticipating the effect of key departures while preparing current staff for future roles and developing their skillsets, is future-proofing your school. It can also be a great motivator for a team to see where the opportunities lie: a win-win for your people and your parents who can rest easy knowing the school is safe, whatever the future holds.

Succession planning is an insurance policy for continuity and sustainability and doesn’t only apply to senior-level replacements. The abandonment of any post will have some level of impact, particularly as lower-level staff are more involved with everyday operations. Preparing staff to step into key roles, and upskilling them to assume key positions, can help you to recognise and identify both current and future needs. This is particularly important when the school’s strategic planning calls for a change of direction. Identifying the skills lacking in the existing team affords you the time to get those skills in place before they are required.

It appears to me that in the TV programme, Logan Roy’s big mistake is that he is relying heavily on loyalty and longevity to help him determine the next in line, favouring those who favour him without considering whether they

genuinely have the skills for the larger role. Plus, he has made the situation competitive, and therefore it is doomed to fail as all trust is lost.

THE RIGHT PATH

The pathway to successful succession planning is a straightforward one. Identifying the key short, medium and long-term goals of the school, the experience and key skills required to deliver them, where that experience and those skills currently sit, where the gaps are and how best to plug them. But where to start?

Performance reviews and 360-degree appraisals are extremely helpful in identifying where latent talents lie and where skills gaps sit. They help to identify aspirant leaders who have potential. However, not all staff will agree with your plans to place them in the key position you have in mind; they may have other plans. The appraisal process helps you to include people in your succession planning thoughts and talk to them about their career goals and personal progression plans in the wider industry. By encouraging a culture of learning in your staff, as you do with your pupils, your team will quickly gain skills. Identifying opportunities for mentoring, shadowing and job rotation should form part of your appraisal process. It fosters a culture of continuous development and makes the appraisal process a positive experience for all involved.

Tiffany Fleming offers advice on how to prepare the next generation of your school leaders

Tiffany Fleming

“Looking internally to fill a position removes the need for onboarding. If you promote from within, you are filling a position with someone who already knows your school’s history, objectives and vision.”

Gap analysis will determine who can fill which positions and identify the skills deficit, both for now and for the future by reviewing your succession plan alongside the school’s strategic plan, which will deliver a clear list of training requirements.

Training plans will identify training requirements. A timely programme of learning and development can take place with the most pressing skills learnt first. Staff who can fill critical positions now

may have outdated skills by the time succession rolls around. Likewise, staff who may not be ready to fill certain positions yet, might be the best choices after the right training and coaching. The succession planning process should be developed alongside the training plan by including opportunities on exchange schemes, secondments, shadowing arrangements and regular coaching. Review should be a dynamic policy at regular intervals with ongoing appraisals undertaken to map progress.

CLEAR PLANS

One of the most important and influential actions is to ensure the plan is clear and concise. Creating a formal process promotes consistency and can be communicated more easily to everyone involved. Communicating your aims and intentions properly, ahead of time, can positively impact your team. Staff and potential staff will recognise that the school invests in talent and in its people. Trust and loyalty will be enhanced. It may also help maintain or improve morale, as staff will not have to worry about what will happen if a leader, or influencer, leaves. Demonstrating to all staff that they all contribute to school leadership,

showing the school is open to considering alternative leadership structures, and demonstrating that the school considers work-life balances, will do much to underpin the loyalty of those already in post.

Looking internally to fill a position removes the need for onboarding. If you promote from within, you are filling a position with someone who already knows your school’s history, objectives and vision. It supports retention and enhances staff engagement by demonstrating that you value your team and want to give them opportunities for advancement. However, recruitment may be unavoidable when the position cannot be filled from within. Planning and budgeting for external support to help identify the right candidates of sufficient calibre is recommended. Recruitment specialists help to focus on what is really needed and may assist you in finding a more suitable pool of talent than you are likely to reach independently through the benefit of a fresh perspective and a certain amount of detachment. Perhaps Logan Roy should take note.

Tiffany Fleming is a director at consultancy Headspace Academics.

Rateable values

Business rates are a property tax based on rental values. Many schools are concerned that this may become a much greater cost to them if the charitable relief is removed. This article will discuss the latest changes in business rates, including the continued scope for appeals and the new ‘duty to inform’.

Many schools were able to make successful appeals against their business rates for the 2017 Rating List (1 April 2017 to 31 March 2023). A new national valuation scheme, agreed by three of the main firms advising in this sector, with the Valuation Office Agency (VOA), led to significant reductions in the rateable values for many schools which had engaged in the ‘Check, Challenge, Appeal’ (CCA) process. A new set of rateable values took effect on 1 April 2023 and with the figures only ever increasing, schools and their advisors are starting to consider how we can, once again, challenge the rateable values set by the VOA.

Wales has now followed England and has brought in CCA-based rules, including the need to open an account on the Government Gateway before valuation information can be requested and the appeal process started. There

“A new set of rateable values took effect on 1 April 2023 and with the figures only ever increasing, schools and their advisors are starting to consider how we can, once again, challenge the rateable values set by the VOA.”

is currently no imminent deadline to commence the CCA process for the 2023 Rating List in England and Wales, which is likely to remain open until 31 March 2016. The appeal situation in Scotland is very different, with a very short appeals window which expired on 31 August.

IS A NEW APPROACH TO VALUATION NEEDED?

In April 2023, with the revaluation, the average increase in rateable value across England and Wale was 7.1%. In the detail behind this there were some large swings in value – retail down on average by 10% for example, but industrial premises up by an average of 27%. The rateable value is intended to reflect a hypothetical rent on certain statutory assumptions and key to assessing the accuracy of the new rateable values, is the analysis of the rental markets at and around 1 April 2021 valuation date (a difficult date to value with some Covid restrictions still in place).

For schools in city centres, there’s often a clear rental market on which the VOA can base its assessments. However, most independent schools are valued on the ‘contractors basis’, that is, with reference to rebuilding costs. This approach is also adopted for universities, colleges, law courts, libraries etc. With consistent rises in building costs, those involved in advising schools are questioning whether some alternative approach may be more appropriate and sustainable. There is an argument that where there is limited market rental evidence, an income and expenditure-based approach may be more appropriate.

In this accounts-based model, the theory is that the surplus generated by schools may be indicative of the amount which they could afford to pay by way of a hypothetical rent. This approach has historically been adopted for trading premises such as hotels, cinemas and pubs. Interestingly, museums have traditionally been valued on the contractors basis, but recent case law has dictated nominal values in some cases (particularly where the building itself

is the main attraction) and for most an assessment derived from analysis of income, expenditure and visitor numbers. Adopting such a basis for schools may well result in winners and losers. It would also depend on the availability of data from ratepayers. It does seem reasonable to review whether assessments based on ever-increasing building costs can be justified. Will the financial pressure on schools, with the potential loss of charitable relief from rates, VAT exemption and other factors, suggest a fall in rental values?

WHAT ABOUT THE EFFECTS OF COVID?

As discussions on the new rateable values commence in most sectors, one particularly tricky question is how Covid would have affected the rental bid of the ‘hypothetical tenant’ for the premises at the 1 April 2021 valuation date. For some sectors there have been marked and permanent changes in the use of and requirements for space. For others, such as schools, where the amount of rental evidence has always been limited, the question is what reasonable adjustments should be made to rents struck immediately before or after the main Covid period. For a tax which has been around for more than 400 years, it’s surprising how many new and potentially contentious issues can arise with each rating revaluation.

Andrew Altman outlines the latest changes in business rates and assesses their effects on your school estate

Andrew Altman

UNIT OF ASSESSMENT

Where school sites are adjacent, save by the severance by a public highway, they have invariably been considered to be a single rating assessment. In some cases, the degree that parts are ‘functionally essential’ to each other has been argued under historic case law. For others, a single assessment has simply been the convention. A more recent court case on the linkage of floors within an office building, has resulted in a more rigid approach and changes to the law. In some cases we have seen examples where the VOA has been reviewing its approach and seeking to divide assessments for schools where buildings are severed by roads.

At present, the VOA potentially has the power to backdate as far back as 1 April 2017. However, unless in response to an appeal, the regulations mean that it can only do this if it take action before 31 March 2024. It will otherwise be restricted to an earliest date of 1 April 2023. In a rural area, the sum of the rateable values of two or three parts may not be very much greater than the whole, when valued on the existing basis. However, in urban areas the effect may be much greater.

CHARITABLE RELIEF

The potential loss of the 80% charitable relief continues to be of great concern, particularly when combined with other financial pressures on the horizon. From recent policy statements, it does seem

very likely that this would disappear very quickly under a Labour government. This point was flagged by Rachel Reeves at the Labour Party conference in October.

UNIFORM BUSINESS RATE

The uniform business rate (UBR) for each financial year is the multiplier applied to the rateable value to calculate the basic rates liability. From this figure, charitable relief is deducted as appropriate and other adjustments may also apply – a slightly lower rate for small properties, ‘Crossrail Supplement’ in Greater London and transitional relief to phase in the largest increases resulting from the 2023 rating revaluation.

The UBR for large properties – with a rateable value of £51,000 or more in England – is currently 51.2p in the pound. This has not increased since 2020-21 as the government decided to waive inflationary increases to assist ratepayers during the Covid-19 pandemic and following the cost of living crisis.

Unless there is a revaluation, the government is only able to increase the UBR by a maximum of the increase in the Consumer Price Index to the preceding September. The CPI for the year to September this year was 6.7% and ratepayers and their trade bodies have been lobbying for another freeze for 2024-25. In the chancellor’s Autumn Statement on 22 November, it was confirmed that the UBR for larger properties for 2024-2025 will be 54.6p

in the pound, putting yet more pressure on schools’ budgets. The chancellor did freeze the UBR for small properties though.

DUTY TO INFORM

The Non-Domestic Rating Act 2023 came onto the statute book just a few weeks ago. This included consolidation of a number of revisions and technical adjustments following the government’s review of business rates. Of particular interest to ratepayers though is a new ‘duty to inform’. This will put an obligation on ratepayers to declare relevant changes to their premises within 60 days (changes of occupation, tenure or physical factors) and also to make an annual declaration. The details will be confirmed by regulations and there is still uncertainty as to what will be involved. There is likely to be a requirement to register on a new portal, but the government has promised that the changes will not come into effect until it is “absolutely satisfied that ratepayers can reasonably and efficiently comply with it through the online service”. The Valuation Office records are not always up to date and of particular interest to schools will be to what extent they will be required to verify the data held by the Valuation Office and how any historic omissions might need to be declared.

Andrew

A taxing problem

Colin Laidlaw revisits an issue of concern to independent schools with a new perspective on VAT on fees

Education is currently not subject to VAT when provided by certain types of providers (eligible bodies) and when charged for. The Labour Party recently confirmed it would seek to add VAT to independent education fees if elected to government in the next general election, following its promise to look at the tax position of independent schools in its 2019 manifesto: “We will close the tax loopholes enjoyed by elite independent schools and use that money to improve the lives of all children, and we will ask the Social Justice Commission to advise on integrating independent schools and creating a comprehensive education system.”

In a recent report the Institute for Fiscal Studies (IFS) estimated that adding VAT (at the current rate of 20%) to independent school fees could raise about £1.6 billion a year, resulting in an effective VAT rate, after allowing for deductions, of 15%. Although there are many variables on the effect of adding VAT to school fees, the IFS estimates there would be limited additional burden on the state as a result with net gain to public finances of up to £1.5 billion. To be fair to the Labour Party, this isn’t bad for a revenue-generating proposition.

However, whatever your politics and ignoring the “Will they get into power?” question, it’s clear that adding VAT will affect the sector. So, what do we know and what can we do about it?

“Whatever your politics and ignoring the “Will they get into power?” question, it’s clear that adding VAT will affect the sector.”

CAN LABOUR ACTUALLY MAKE FEES SUBJECT TO VAT?

The simple answer is yes. The current VAT rules are largely derived from a centralised set of EU rules or guiding principles which exempted the supply of education by certain bodies. Now the UK has left the EU, it is at liberty to change the rules as it wishes. A change in law would normally be announced in a Budget and enacted under Royal Assent, which could be relatively quickly after an election result.

The expectation is that the definition of an ‘eligible body’ would be changed but, the current rules are quite wide reaching and careful drafting will need to be carried out to ensure that any changes only affect those the Labour Party is targeting and not any or all education providers. While state education is free and therefore not subject to the VAT rules per se, a lot of paid-for education is undertaken outside the independent school structure and these would need to be separated.

In addition, there has been speculation regarding particular types of schools and whether they might be excluded from the VAT changes, such as special educational needs schools. The IFS reports that approximately 4% of pupils in independent schools have a statement of special educational needs for which funding is paid by the local authority, which would just increase the funding burden. Again, if this is the desired outcome, careful drafting would need to be carried out.

WHAT CAN SCHOOLS DO?

The reality is that the options are limited. The point at which VAT is payable is based on the tax point and if a tax point can be advanced such that it occurs before the date of imposition of any VAT change date, in theory, no VAT is due; it remains exempt even if the services are provided much later on.

An advanced payment scheme would therefore enable fees to be charged in

advance for the provision of future services (education) without VAT, but the fees would need to be paid (as payment creates the tax point) and available to the school to use as it wishes and not held under some form of escrow account or similar. Subject to any terms and conditions drawn up, this may expose the school to future loss and, in practical terms, it may just not be feasible for parents to stump up large amounts of fees in advance.

There has been a lot of reporting on this issue recently and any government taking note can take action to prevent such a scheme from having effect using anti-forestalling measures. Of course, these cannot be enacted if Labour is not in power, so anything carried out in advance of any change in law could potentially work.

In addition to anti-forestalling measures, HMRC can cry foul under the abuse provisions. Implementation of any scheme designed to avoid VAT will always be subject to scrutiny from HMRC and possible challenge. The devil is always in the detail and implementation is key and specialist advice should be sought in all cases.

WHAT WOULD BE COVERED BY A CHANGE IN VAT?

First, will the rate be 20%? This is currently the standard rate of VAT in

Colin Laidlaw

“Implementation of any scheme designed to avoid VAT will always be subject to scrutiny from HMRC and possible challenge.”

the UK and it’s likely that this will be applied here – in theory any government can use the reduced rate (currently 5%) or indeed, add an additional rate of its choosing (as happened recently during the pandemic for catering – 5% and 12.5% over differing periods). But anything less than the standard rate would appear to defeat the object of a revenue raising exercise.

Of course, the standard rate can also go up although, in the same manifesto, the Labour Party confirmed that it would “guarantee no increase in VAT” as “VAT is a regressive tax that hits the poorest hardest”.

Second, there is a general assumption that VAT will be added to school fees, but there are other fees charged by an independent school including catering, boarding, transport, sports and trips, alongside other income streams, not necessarily connected with the provision of education to fee-paying pupils.

Will these also be subject to VAT?

Some of these would already be subject to VAT if supplied in their own right but

are currently exempted where they are considered as ancillary to the supply of the education. Similarly, some of these might be exempt (for example, accommodation) or zero rated (for example, transport) if supplied separately. There are also special rules for supplies of trips which may kick in. It’s not straightforward and given the objectives, it seems likely that these extra fees would equally be subject to VAT.

In addition, a large proportion of independent schools offer some form of subsidised fees whether covered by a bursary or scholarship (or just reduced). The VAT implications of these would need to be considered – depending on circumstances, there may be hidden liabilities. Also, free supplies are generally considered to be non-business activities which may have an impact on VAT recovery, in certain circumstances.

ARE THERE ANY ADVANTAGES TO CHARGING VAT?

Yes, but the advantages are heavily outweighed by the disadvantages. The IFS concluded that the effective tax rate on schools would be around 15% (assuming a 20% standard VAT rate). This is because a business that charges VAT is entitled to recover VAT it incurs in carrying out its business. VAT exempt supplies do not allow VAT recovery and, at present, many independent schools are not registered for VAT.

This VAT recovery will depend on the VAT position of the income as discussed above:

• If everything is subject to VAT, all VAT incurred will be able to be recovered.

• If there remains an element of exempt activity, whether education or otherwise, not all VAT will be recoverable and some form of apportionment might be required.

• If there has been an advanced fee scheme in place this is likely to affect future recovery as costs are being used to undertake activities that are still exempt.

• There may also be an opportunity to recover VAT incurred on certain capital spend in the past 10 years if subsequently used for taxable activity. This will vary significantly by school and advice should be sought as to how this might be achieved and, of course, the biggest cost for any school is staffing costs and these don’t have VAT on them.

Other things will also change. Schools will have to register for VAT and compete and submit VAT returns. It is likely VAT inspections will follow. It will be necessary to record VAT as a separate item – currently most costs are posted gross to the expense code –if VAT is to be claimed, it needs to be recorded. Finally, finance systems may need to be upgraded to take account of this and digitalisation rules (making tax digital).

CONCLUSION

There are a few ‘ifs’ and ‘buts’ not least whether the Labour Party will actually get into power, but it’s clear that if it does and it changes the VAT rules in respect of the supply of education by an independent school it will have a significant impact.

We have only touched on the VAT aspects and there are other areas which will be affected, and, for some schools, this may just be the straw that breaks them.

There’s not a lot that can be done to avoid the pain but forewarned is forearmed – you should model the impact of imposition of VAT and, if necessary, start having conversations with parents. Implementation of an advanced fee scheme may help in the short term but is unlikely to be a long-term plan.

Colin Laidlaw is a VAT director at accountancy firm Kreston Reeves.

Out of order

Grant Murray explores the moral and business cases for charging orders

Surveys have shown that more than a third of independent schools have an unpaid debt that is secured via a charging order on a property. However, very few charge holders realise that they may apply for an Order for Sale which can result in the property being sold and the debt cleared.

Charging orders have long been a common way of enforcing a County Court Judgment (CCJ). Although HM Courts & Tribunals Service does not release official statistics, it is believed that around 100,000 charging orders are granted to claimants each year. These can be for anything from an unpaid credit card, a water bill, or of course unpaid school fees.

There are many reasons why a creditor may choose to secure a CCJ with a charging order. In the case of schools it is often because there’s a tacit agreement with the debtor(s) to secure the debt against the property until such time as the pupils finish their exams or otherwise leave at the end of the current year or key stage. This is sometimes accompanied by an agreement for the parents to make token payments toward the debt to clear the charge gradually.

A FEELING OF INSECURITY

So, you have a charge on the property and the debt is ‘secured’ against that asset. But when the child has left, the payments have stopped, and with no one at the helm to

“It's perfectly reasonable to take into consideration someone’s net worth (where it’s possible to determine to a fair degree of accuracy) when assessing the appropriateness of an Order for Sale against a recalcitrant debtor.”

guide the process, the debtor is no longer responding to letters – what happens next?

The debtor will often be content simply to let the charge remain on their property. Although this can almost seem to be a guaranteed long-term investment for the school (charging orders generally accrue 8% statutory interest per annum) the charge may not be as secure as first thought. Depending on how the charge was registered with HM Land Registry the debtor may still be able to sell the property without the consent of the charge-holding school, leaving the charging order redundant and the debt still unpaid. This is something that all schools with existing charging orders should urgently seek to clarify and I am happy to advise bursars on how to check theirs.

THE CASE FOR ACTION

There will always be those school fee debtors who are simply taking advantage of the system. Often such debtors know that the debt to the school will not immediately affect their credit worthiness in the same way that, for example, missing mortgage payments would. Priority may therefore be given to their other outgoings rather than their obligation to pay the school. An application for an Order for Sale has been shown to reverse this standpoint and often produces favourable repayment offers or settlements in full.

It's perfectly reasonable to take into consideration someone’s net worth (where it’s possible to determine to a fair degree of accuracy) when assessing the appropriateness of an Order for Sale against a recalcitrant debtor. Some may be experiencing genuine financial hardship in terms of their income/ expenditure, but also have a very high net worth. For these ‘cash poor, asset rich’ debtors, does it really constitute fair treatment of them to perpetuate their financial difficulty by accepting a low value instalment arrangement, keeping them indebted for an extended period of time, incurring even more interest?

Perhaps it would suit all parties if the court granted the school’s Order for Sale and the debtor’s assets were liquidated. Depending on the value of their assets this could result in their debts being cleared, their monthly outgoings greatly reduced and substantial net funds given to them at the end of the process.

PROTECT THE VULNERABLE

Any reputable solicitor or debt collection agency should have measures in place to spot sensitive circumstances and take them into consideration when weighing up whether to issue an Order for Sale, then advise the school accordingly. This helps to reassure the school that legal action is not being taken inappropriately.

Further protection for the vulnerable is provided by section 15 of the Trusts for Land and Appointment of Trustees Act 1996, which requires courts to consider the interests and the welfare of the debtor, other members of the debtor’s household (and dependent children in particular) when considering a creditor’s application for an Order for Sale. Therefore, if a judge ultimately approves a school’s application for an Order for Sale, that school can be sure that the decision has given appropriate consideration to the debtor’s circumstances.

Grant Murray is head of risk and compliance at Redwood Collections

Grant Murray

Before the deluge

Many regions of the world are experiencing more frequent extreme weather events. The UK has also been exposed to this worrying trend, with record temperatures being set year-on-year, and the impact of flood and storm systems being felt across the country. The UK Met Office predicts that the frequency and intensity of rainstorm events will increase in future years due to the effects of climate change – in the summer, this could increase by up to 20% and in winter it could increase by up to 25%. According to a recent ‘Climate change risk assessment’ report, an estimated 1.8 million people are living in areas of the UK at significant risk of coastal, surface or river flooding. The population of people living in such areas is projected to rise to 2.6 million by the 2050s under a 2°C scenario and 3.3 million under a 4°C scenario, assuming a continuation of current levels of adaptation and a low population growth.

In relation to the potential impact of climate change on school buildings and historical sites, the predicted change in weather patterns is only part of the challenge. Add to that complexity, the pace and scale of urbanisation, the limitations on capacity within existing infrastructure, and it’s not difficult to see how risks from climate change and associated weather events will increase the risk of flooding in many locations.

According to the Energy and Climate

“In relation to the potential impact of climate change on school buildings and historical sites, the predicted change in weather patterns is only part of the challenge.”

Intelligence Unit, by the 2080s, up to 1,800 schools in the UK could be exposed to “significant likelihood” of flooding (a greater than 1 in 75 annual chance). Consequently, the likelihood of damage, disruption and increasing costs of repair and insurance will feature prominently on the risk registers of local authorities and individual properties.

TIME TO CHANGE

So how to manage this increasing risk? In recent decades, the flood risk management community has moved from a policy of ‘flood resistance’ (that is, keeping water out of buildings), to a policy of ‘flood resilience and recoverability’ (that is, designing and operating buildings to minimise the impact of flooding). This sentiment ‘accepts’ that flood risk is likely to increase and focuses on adaptation and/or design solutions that can minimise damage and support rapid recoverability. It’s a more sustainable approach and lends itself to greater capacity building as flood risk increases with climate change impacts.

In practical terms, however, typical flood mitigation will use a mix of resistance and resilience measures, at a community and asset level. This ‘layering’ of protection often yields the best results and is increasingly seen as the most comprehensive approach to managing flood risk. This will often require collaboration and communication across organisations (public and private sectors) and should align with a ‘flood emergency response plan’ which defines roles and responsibilities, as well as advance warning alerts.

Sticking with the theme of practicality, there are a number of activities that educational establishments could undertake to improve their awareness and preparedness for flood. These activities have been described within a timeline that could act as a prompt for action.

AT RISK?

For any establishment that has a known flood risk, or has been affected by flooding in the past, there are a number

of tasks that should already have been undertaken. A review of historical flood events is always a useful exercise as it highlights the extent to which the establishment is currently at risk and the effect of flood events that have happened in the past. This information could be supplemented by personal experiences from staff, claims information, and documentation related to previous damages that may have occurred. It is also important to understand the extent to which a site is exposed to flooding. This information is readily available via the devolved environmental agencies (Defra, Scottish Environment Protection Agency, Natural Resources Wales, etc), where flood maps can show the areas likely to be affected by flooding and the extent to which that risk is likely to impact a location.

In areas where flood risk is known, there will be a regional (or catchment) flood management plan, often referred to as a strategic flood risk assessment. The elements of relevant watercourses, coastal areas and existing flood defences will be reflected in this documentation, and it should be used as a valuable source of information in gathering details on existing flood risk and existing infrastructure.

Educational establishments should also be undertaking current activities to determine their preparedness for the flood risk that has been identified. Identifying areas of weakness across

David Kelly explains how to mitigate the increasing threat of floods to your school campus

David Kelly

risk management

the site in relation to flood resistance and flood resilience is a critical activity to manage risk. This should include an investigation on how flood water is likely to present to the site (for example, from which direction) and how quickly this can develop (based on previous experiences). This analysis should then inform the development of resistance and resilience measures to protect the site and minimise damage and disruption. Typical resistance measures would include identifying and protecting access and egress routes that could provide a pathway for water to enter the site. At the building level, service penetrations, ventilation gaps and entrance doorways are obvious elements that should be protected.

Current activity should also include a review of the likely damage that could occur during and after a flood event. This analysis should include a view on the level of disruption that could be caused, and the likely time required for the site, asset or portfolio to recover. This will give an indication on the current level of resilience and will identify opportunities for improvement in relation to resilience and recoverability.

EMERGENCY RESPONSE

A Flood Emergency Response Plan (FERP) is a good way of establishing procedures that can protect a site from flooding. The FERP can include physical activities, such as deploying flood protection measures when a flood warning is received or moving sensitive equipment/materials to upper levels of the building beyond the predicted flood depth. Liaison with the local emergency services is also recommended to ensure that response measures are coordinated and measured in relation to the predicted risk.

BE RESILIENT

In the medium to long term, educational establishments should seek opportunities to improve their flood resilience by integrating this approach into routine maintenance and refurbishment activity. Climate risk will increase in future years and flood events are likely to become more frequent and severe. Consequently, positioning climate risk high on a risk register will provide opportunity to mitigate the potential effects in a more consistent and structured way.

Resilience measures, such as using

“Climate risk will increase in future years and flood events are likely to become more frequent and severe.”

recoverable floor coverings, raising electrical connections, etc should be integrated into routine maintenance schedule and refurbishment programmes. Taking this approach will reduce the impact of specific capital spend solely on resilience measures and is a more ‘sustainable’ approach that should be considered.

In summary, climate change impacts will increase flood risk in many areas of the UK. Protecting assets and providing opportunity for resilience and recoverability are key to mitigating these risks. Assessing current levels of protection and resilience to flooding are important, as is coordination with emergency services as part of emergency planning activity.

David Kelly is vice-president of risk specialist Marsh Advisory UK.

Deal with bad news

Carolyn Reed and Katie Cardona reveal how to combat the potential fallout from an unforeseen crisis

We live in a world that is fastpaced, ever-changing and interconnected, where an unexpected communications challenge can affect any school at any moment. We have seen this in recent months with the tragic accident at The Study Prep School in Wimbledon and the parental outrage expressed at the plans to close Falcons Pre-Preparatory School in Chiswick. When events like these happen, schools are vulnerable to public scrutiny and reputational damage which is why successful crisis communication has become yet another essential skill for heads, the senior leadership team and governors.

What constitutes a crisis? Any situation can become a crisis if it isn’t handled properly, but typically real crises share two common characteristics:

• Negativity – adverse consequences are usually the potential outcome of a school crisis, whether reputational damage or financial loss.

• High levels of interest – inevitably a crisis will capture the attention of the sector and sometimes the attention of the wider public. In a world of immediate news via chattering parents, staff, pupils and alumni, and digital platforms, this means a swift response will be needed.

So, what are the essentials for successful crisis communication?

PREPARATION

Preparation is the foundation of effective crisis communication. In some instances

“We live in a world that is fast-paced, ever-changing and interconnected, where an unexpected communications challenge can affect any school at any moment.”

schools will have time to prepare, such as during a merger, but there will be occasions when an incident happens without warning. This could be the death of a member of the school community or an accident on site. Therefore, schools should develop a comprehensive crisis communication plan to identify potential crisis scenarios and create a response strategy for each one that outlines responsibilities, protocols and actions.

TRANSPARENCY

It’s crucial to be open and honest at all times. Avoiding or minimising the nature of the crisis can escalate the problem. Always take responsibility for mistakes made and provide clear information, being careful to avoid rumours and speculation.

EMPATHY

In the world of crisis communications, delivering disappointing or bad news is also an opportunity to demonstrate empathy, understanding and kindness. It is essential to approach the task with genuine compassion and respect.

CONSISTENT MESSAGING

Discrepancies in messaging can erode trust, so make sure your crisis communications are consistent across all channels.

POST-CRISIS

In the relief that you feel once the crisis has passed, don’t forget to carry out a thorough review of your school’s response to identify what went well and what could have been done better.

There’s no ‘one size fits all’ solution to crisis communication as the circumstance and situations in schools will vary. Here are some examples of best and worst practice in crisis communications in schools from highly experienced colleagues and we hope they will be useful should your school find itself in a similar situation:

• “Don’t let the press catch a member of staff off-guard. A story of national

interest broke and the head’s wellmeaning PA took the call. Instead of passing it to me, she dealt with it herself and was encouraged into saying something she later regretted. Make sure your receptionists know exactly who the designated spokesperson for the school is and don’t let anyone be tempted to answer a journalist’s question themselves, no matter how helpful they want to be. It’s just not worth it.”

• “When communicating bad news to parents, pupils and staff, it’s really not OK to simply send out an email. Hiding behind an email inflames the situation and allows unfounded rumours to gain credence. Hold a meeting, explain any decisions and answer questions. After all, what’s the worst that can happen? Yes, things might get a bit heated, but if there are sound reasons behind any bad news, it’s best to be honest and open. The school community will thank you for it in the long run.”

• “My personal plea to governors and heads wishing to make a major announcement is to involve your comms professionals at an early stage. Why? Because it’s so important to ensure that the news is communicated to the whole school community at the same time. Imagine how distressing it is when one section hears the news first and the rest have to find out secondhand. Do ensure you have a statement prepared that your comms professional can release on your school’s website and social media channels at exactly the same moment as you are making the announcement. This way you can control the narrative, you can control the facts, and you can control any reputational damage.”

These examples demonstrate that although you cannot change the news that’s being communicated, you can influence the way in which it is being delivered, which makes a big difference.

Carolyn Reed and Katie Cardona are schools communication specialists from Reed Brand Communication.

Have a plan

Now that the first term of the academic year is over, this is the time to reflect on your school roll and applications to join the school. For some, that will be positive with an increase in the pupil roll and, for others, the picture won’t be as rosy with a drop in overall numbers.

Irrespective of whether you are celebrating or commiserating, there needs to be a plan in place for what to do next: whether that is working out how to maintain numbers, increase numbers, or market share, it is imperative that there is a well-researched strategic plan in place to ensure that you understand how you have arrived at your current position and then detail how to make the necessary improvements.

MEASURE YOUR METRICS

This strategy will need to include recording your key performance indicators and metrics to allow for quick and easy investigation into what is working and, more importantly, what isn’t. It is time to ditch the ‘finger in the air’ approach to marketing and admissions strategy altogether and adopt a data-driven approach to ensure that the department is run cost-effectively and efficiently.

Now, more than ever, schools need to define the value they offer to prospective and current families. It’s no secret that VAT will be added to fees if Labour wins the next general election and that VAT could be added as soon as spring 2025.

“Now that the first term of the academic year is over, this is the time to reflect on your school roll and applications to join the school.”

Some families will continue to pay fees without question, but they will be paying more attention to the value provided for those fees. Each demographic group will perceive value differently, whether that is your facilities, extracurricular activities, or the experience their children have through the school.

Here are some questions for you to consider:

• How do you go about defining value?

• How do you demonstrate that you understand what the parents want?

• How do you build this into a strategy to ensure that you are attracting and recruiting a broad spectrum of families whose children would be suited to what you offer?

It is all about understanding what each parent wants. There are a variety of ways to know this:

• Socioeconomic demographic analysis.

• Stakeholder engagement, including o current parents, o staff,

o non-joiners

Having defined ways to collect data regularly from each of these sources, this allows you to ensure you know what your families want and, just as importantly, what prospective families want, allowing you to define your value proposition accordingly, ensuring that you are able to set realistic goals, have the agility to change and improve upon them, and ensure that your strategy is as efficient as possible.

It also allows you to make sure that the customer experience is as good as it possibly can be, with each parent able to access the information most suited to their needs and requirements. This provides better customer service and improves conversion rates.

This of course all needs to marry up with the messaging and values that the school projects and must run through the organisation seamlessly, with all members of staff understanding what it is and buying into it. In such a competitive environment, there isn’t room in a school for anyone who isn’t singing from the same hymn sheet.

“Ditch the ‘finger in the air’ approach to marketing and admissions strategy altogether and adopt a data-driven approach.”

BUYING-IN

As part of ongoing research into parental buying habits into independent schools, we recently carried out a survey to 1,000 parents to understand the barriers to entry, what they expect for their money, and their overall perception of independent education. The majority of the respondents could be defined as ‘aspirational’, two working parents who would need to, or who are already, making sacrifices to send their child to a fee-paying school. Unsurprisingly, the vast majority said that small classes, high-quality education academically, and strong pastoral care were prerequisites, which is what they expect from your school as a bare minimum requirement for sending their children there. No longer can these qualities be considered a USP, so you have to define your value proposition clearly and demonstrate what they get for their money.

Daniel Cohen is director of business development at schools marketing firm MTM Consulting

Daniel Cohen outlines ways to maintain and/or improve your school admissions practices

Daniel Cohen

Maximise fundraising

Independent schools, having weathered the effect of the pandemic, can celebrate that their fundraising and engagement is thriving.

The Institute of Development Professionals in Education (IDPE) and Gifted Philanthropy Fundraising Consultants’ ‘Schools’ fundraising and engagement benchmarking update 2023’ builds on the full 2022 benchmarking report to provide an up-to-date overview of development in schools. In total, 152 schools contributed to the update, including both independent (92%) and state schools (8%), and the data is undeniably positive.

PHILANTHROPY IN SCHOOLS IS GROWING YEAR-ON-YEAR

Despite the challenging economic climate, schools that have invested in development have been able to realise significant philanthropic support to advance their strategic objectives and provide exceptional opportunities for young people in education.

In the two-year period under review

“The ambition and abilities of development professionals in the sector are a powerful force that leverage greater results yearon-year.”

(2021-22 and 2022-23 academic years), £269,712,214 was received in gifts and pledges (including legacies and known legacy commitments) by 119 schools. The average income per annum, per school, increased beyond pre-pandemic levels to £1,133,245, up from £757,718 in 2018-2021.

If we look at different types of school, co-educational independent schools continue to generate the greatest amount of income and girls-only schools’ income remains consistent at 10% of the total income generated, with a reported increase in legacy income. Boys-only schools –where development has on average been established the longest – continue to raise the most on average per school: 7% of the respondents were boys’ schools, raising 39% of the total income generated (up from 25% in the 2022 report).

Development offices have accelerated their fundraising performance. The ambition and abilities of development professionals in the sector are a powerful force that leverage greater results yearon-year. Of the development offices that reported income for both individual financial years under review (2021-22 and 2022-23), 56% raised more in 2022-23 than they did in 2020-21. While the number of development offices reporting annual average philanthropic income over £1 million per annum is up from 11% to 15%.

WHAT IS UNDERPINNING THIS SUCCESS?

• Investment across the sector is increasing

The 2022 benchmarking report demonstrated that the more you invest in development, the greater the return.

It’s perhaps no surprise therefore that the new heights of income generation being achieved across the sector are mirrored by an increase in investment in teams and budgets.

During the past two years, 34% of offices have grown in size, more than double the number which have reduced in size (17%), with 49% remaining the same. Similarly, the majority (65%) had increased development expenditure. The data also shows that 71% of the development offices that reported an increase in expenditure raised more money than they had previously.

Annabel Green reveals why independent schools can celebrate record levels of income generation

Annabel Green

Fundraising totals for independent schools - average income per annum

Independent schools investment in fundraising

• More heads are engaged in fundraising

The 2022 report evidenced that successful fundraising needs active leadership. Heads and senior leaders have significant roles to play – as ambassadors, cultivators, introducers and askers – and can be instrumental to the success of a development office. The 2023 update shows that the proportion of heads either very involved or involved in development has increased to 80% (2022: 71%). Among schools that are raising more than £500,000 a year, this percentage is 87%, further evidencing that when development sits at the heart of the school strategy and remains a priority for senior leaders, the greater the fundraising success.

• Schools remain focused on major gifts

In every school community, there is the potential to unlock transformative donations. Benchmarking data consistently demonstrates the value of focusing on major gifts, and this continues to be the largest source of income across the sector, followed by

“Benchmarking enables schools to compare and contrast their performance against similar types of schools, highlighting strengths, as

well as

identifying opportunities to enhance fundraising and engagement performance.”

lower-level regular donations. Between them, they represent 76% of all income generated by the 119 development offices which reported figures.

• The most successful schools are proactively engaging their communities

Effective fundraising at any level relies on strong community engagement, bringing alumni, parents and other key stakeholders together around a school’s vision. The data demonstrates that schools that are being more proactive in engaging their communities are achieving greater fundraising success. Schools that engage alumni through reunions, events and careers programmes, and which consistently keep in touch with parents with written fundraising communications, generate the most income.

• Purpose and social impact remain a powerful force for philanthropy

At a time when the attainment gap in education is increasing between children from different financial backgrounds, the need to level the playing field is compelling. Fundraising for bursaries remains a key focus for the majority (82%) of independent schools’ fundraising, while every independent school that reported an average annual income of more than £500,000 is raising money for bursaries, either for annual distribution or to build an endowment for future bursary provision (or in some cases both).

WHY BENCHMARKING IS IMPORTANT

Benchmarking enables schools to compare and contrast their performance against similar types of

schools, highlighting strengths, as well as identifying opportunities to enhance fundraising and engagement performance. While IDPE advocates that every school is different, and every school’s development journey unique, the benchmarking report shares emerging best practice across the sector, highlighting the factors which can influence success, and provides a basis from which to encourage schools to start, and accelerate, their development programmes.

The 2023 benchmarking update shows that the sector is performing at an alltime high and that the opportunities for advancement are there to be realised. At a time of rapidly increasing costs – for both schools and parents – schools need to be reading this update and asking themselves, can they afford not to invest in development?

To download the IDPE and Gifted Philanthropy Fundraising Consultants' ‘Schools’ fundraising and engagement benchmarking update 2023’, visit: idpe.org.uk/#benchmarking or contact via: info@idpe.org.uk

Annabel Green is head of content for IDPE.

Relationships for life

Short-termism never works in development. It needs to be structured carefully with a focus on building relationships for the long term. Ian McLean reports on the essential steps to success

In my previous articles, I have urged schools to acknowledge the importance of building relationships as an essential aspect of our development work, but emphasised that this should not halt or slow down actually asking for financial support. In this article, I want to outline the need to maintain and commit to developing relationships and how this approach will minimise the reliance on luck when fundraising is involved. Schools should adopt the following five principles to form the basis of successful and sustained fundraising:

• Cut out the short-term view, think long-term.

• Think ‘development’.

• Focus on building relationships.

• Minimise the fundraising ‘luck factor’.

• Nurture your potential and existing donors.

THINK LONG-TERM

It is understandable with school development pressures, that there is often some urgency and, depending on school finances, this can lead to a demand for funding and fundraising. The short-term view and the sometimes unrealistic expectations placed on likely philanthropic support can bring disappointment, especially if development has not been integrated into the culture of the school ethos. We need to think long-term, and establish development and philanthropy as part of the school’s culture. At the same time,

“Schools

should engage

with a variety of people to gain support in different ways, including offering a range of fundraising opportunities.”

be aware of the potential support that is already willing and available.

Development is a long-term process and will not survive with a short-term approach which creates expectations that may not be possible. However, the common nature of transiency within international schools often means that relationships can be quickly formed, but lost equally as soon. Judgement is required.

THINK DEVELOPMENT

There’s a misconception that development is another name for fundraising – not so. An effective development office with sustained fundraising will integrate these three aspects:

• Constituency relations.

• Communications.

• A broad mix of philanthropic fundraising including regular giving (building a culture), bequests, major gifts and events.

Fundraising will only be sustained and successful if these elements are working together. I recall a highly respected head naively suggesting that my development office should not worry about alumni relations and should just raise money. For someone so experienced in his field, it was a concern that that this approach may have impacted on other less experienced heads.

BUILD RELATIONSHIPS

Whether it is the head, the board, the development council or the development staff, there should be a consistent focus on identifying and engaging with individuals within the school community who may have an interest and ability to be leaders, significant donors or supporters of development in any other way. We know that people respond to people and often that a relationship is formed because of peer connections, so it may not necessarily be that the development office is best placed to nurture a specific relationship. These individuals will usually have an immediate link with the school, perhaps as a parent or an alumnus but it is possible that there is a corporate

link or a historical association with the school that can be reactivated and that could have a transformational effect on a specific project.

Schools should engage with a variety of people to gain support in different ways, including offering a range of fundraising opportunities.

As well as a direct relationship with the head, governors, and development council, the development office would be wise to develop a close association internally with the senior leadership team, finance office, the head’s PA, the IT department, the staff room, main reception and everyone else.

Externally, schools must be directly involved in managing the alumni relations activity. The days of past pupil associations’ being effective in a tangible way are gone, while the relationship former pupils maintain is with the school and with each other, especially through social media. The school, properly resourced through a development office, is best placed to manage and monitor this.

I have been bemused by the expectations of some heads and board members who believe that being a former pupil is sufficient a connection, to simply see them as a cash cow. They won’t like it and so won’t respond, unless a long-term approach of establishing and developing relationships is in place.

Needless to say, the ongoing attention

Ian McLean

fundraising

and stewardship of corporate and industry connections, past and current donors, potential donors, the alumni association, key parents and even past faculty is an essential aspect of successful development.

MINIMISE THE NEED FOR LUCK

I have experienced the lucky fundraising break on numerous occasions, but they have been unexpected and unplanned. This is not the basis of a sustained development programme and we must treat these as being good luck when they come along. Schools do not have individuals queueing at the door ready to donate. The consistent relationshipbuilding activity that underpins all development work must be the basis of the strategy. Our schools have quite defined and often small constituencies, especially when we consider that a significant percentage will never be inclined to support our fundraising

efforts. Without close associations, relationships or a sense of involvement and commitment, success will be based on luck.

I often ask: “Why would you donate to any organisation?” The answer tells you what you need to know.

NURTURE DONORS AND FRIENDS

So, what can we do to nurture relationships? What should we be doing to develop these relationships that will pay dividends one day? It will naturally vary depending on many factors, but some suggestions that continually provide the feelgood factor include:

• Regular thank-yous.

• Visits to the school.

• Annual gathering of donors.

• Invitations to special school events.

• Asking for advice.

• Sharing plans.

• Reports and updates.

“The ongoing attention and stewardship of corporate and industry connections, past and current donors, potential donors, the alumni association, key parents and even past faculty is an essential aspect of successful development.”

• Involving friends and donors in school life through lectures, career advice, work experience, committees etc.

Ian McLean works independently with a variety of schools in the UK and Europe.

Bishop’s Stortford College

Bishop’s Stortford College in Hertfordshire has appointed John Maguire as its head effective from September, replacing Kathy Crewe-Read who is taking a position in Italy at the end of the academic year. Maguire has taught at a number of schools in the UK. Since 2019 he has been executive headmaster at the British School of Bahrain, a coeducational school for children aged three to 18. Maguire is also a trained inspector for the Independent Schools Inspectorate and is currently a lead inspector for the British Schools Overseas Inspectorate.

Brabyns Preparatory School

Brabyns Preparatory School has appointed Cath Carrasco as its new headteacher. The school in Marple, Cheshire is a coeducational independent day school for children aged two to 11, with nursery, infant and junior departments. The school is part of Bellevue Education. Carrasco has spent more than 24 years working in education and was formerly deputy headteacher at Forest Park Preparatory School in Sale.

Epsom College

Epsom College, a co-educational independent school for pupils aged 11 to 18, has appointed Mark Lascelles as head, effective from September, suceeding Sir Anthony Seldon, who was appointed as head following the shocking murder of former headteacher Emma Pattison last

February. Lascelles has spent 12 years as head of Dauntsey’s School in West Lavington, Wiltshire. Prior to that, he spent three years at The King’s School, Canterbury, two as lower master and one as the acting head, and 17 years at Shrewsbury School as a teacher of geography, coach for the 1st football, cricket and fives teams, and a boarding housemaster.

Francis Holland School, Sloane Square

Alexandra Haydon succeeded Lucy Elphinstone as head of Francis Holland School, Sloane Square in London, an independent school for girls aged from four to 18 with a senior school and junior school. Haydon was formerly deputy head, academic at independent co-educational Millfield in Somerset since 2019. Before that, Haydon spent five years at St Mary’s Calne in Wiltshire where she was head of science and latterly senior teacher. Prior to that she worked in a variety of other schools having begun her career at Graveney School in South London.

Gordonstoun School

Gordonstoun School has appointed Peter Green, the current executive headmaster of Rugby School Group, as principal at Gordonstoun from the autumn, succeeding Lisa Kerr, who is moving to become principal of George Watson’s College in Edinburgh. Green is an experienced school leader, who was previously at the helm of Ardingly and Rugby School. The appointment will be Green’s third headship.

Haileybury and Imperial Service College

Haileybury and Imperial Service College near Hertford has appointed Eugene

du Toit as its next master, to succeed Martin Collier who retires at the end of the academic year. Haileybury is a coeducational independent boarding and day school for 11 to 18 year olds. Du Toit is currently head of Wellington School in Somerset and was previously senior deputy headmaster at Trinity School, Croydon and undermaster at St Paul’s School, London.

Ipswich School

Ipswich School, a public school for pupils aged three to 18, has appointed former pupil Nick Gregory as its head, effective from September, replacing Nicholas Weaver. Since 2015 Gregory has been head of Wycliffe College in Gloucestershire, a day and boarding school for pupils aged three to 18. Before that, he worked at schools including Barnard Castle, Merchant Taylors’ Northwood, Old Swinford Hospital and Mill Hill, where he was deputy head (pastoral). After starting his career in finance with Barclays, Gregory made the switch into teaching, specialising in modern foreign languages, principally Spanish.

Loughborough Amherst School

Loughborough Amherst School, an independent Catholic day and boarding school for boys and girls aged four to 18, has appointed James Neville as its new headmaster. Neville has worked as a senior leader at several independent day, boarding and maintained secondary schools

Loughborough Grammar School

Loughborough Grammar School has appointed Helen Foster as its head, the first woman to lead the boys school, FE News has reported. After joining Loughborough Grammar in 2018 as deputy head of pastoral and discipline, Foster also led the school’s boarding and safeguarding. She began her career as a boarding housemistress of Oakham School in 2009, where she spent nine years. Oakham is a co-educational boarding and day school for pupils aged 10 to 18 in Rutland.

Portsmouth High School

Portsmouth High School, GDST has appointed Sarah Parker as the new headmistress of the private day school for girls in Southsea, effective from September, replacing Jane Prescott who retires at the end of this academic year after 13 years in the role. Parker joined Portsmouth High as deputy headmistress in September 2020 from Harrogate Ladies’ College where she spent eight years as head of English, then deputy head. She has also worked as a head of sixth form.

Royal Hospital School

Royal Hospital School in Holbrook, Suffolk has appointed Irfan Latif as head of the co-educational boarding and day school with naval traditions, effective 1 September.

Latif has been principal at DLD College in Westminster, London since 2018. He has 25 years’ experience in teaching, and more than 15 years as a deputy head and head and has been headmaster at Sexey’s School in Bruton, Somerset, and deputy head at Bedford School.

St George’s School

Windsor Castle

St George’s School Windsor Castle has appointed Emma Károlyi as the school’s new head, effective from September. St George’s is a co-educational independent preparatory school in Windsor, educating more than 300 boys and girls aged three to 13. Károlyi has more than 30 years’ education experience and is currently head of Junior King’s School in Canterbury. Before that, she spent eight years as deputy head and director of studies (academic) at Loretto Junior School in East Lothian, following a varied career in which she became a published author of educational resources, as well as gaining extensive classroom experience in the UK and abroad. Outgoing head William Goldsmith is moving to a headship position at Packwood Haugh School in Shropshire. He has led St George’s since 2019.

St Mary’s Calne and St Margaret’s Prep

St Mary’s Calne and St Margaret’s Prep in Calne, Wiltshire, has appointed Anne Wakefield as its new headmistress effective from September. St Margaret’s Prep is an independent day school catering to children aged two to 11, while St Mary’s Calne is a boarding and day school for girls aged 11 to 18. Wakefield has been

deputy head of Benenden School in Kent since 2019 with specific responsibility for boarding and pastoral care. She is also involved in the school’s marketing, finance and safeguarding. Wakefield was previously deputy head pastoral at Queenswood School near Hatfield, Hertfordshire.

St Mary’s School Cambridge

St Mary’s School, Cambridge, an independent Catholic school for girls aged three to 18, has appointed Hannah Helliar to succeed Charlotte Avery as headmistress from September. Helliar is a history teacher who has held a variety of senior leadership posts at St Mary’s, including heading up the admissions and marketing teams. Helliar worked in a number of roles including housemistress, head of history and head of sixth form, prior to joining St Mary’s in 2012.

The Forest at Merchiston

The Forest at Merchiston in Edinburgh announced that Davina Bowers will be its head teacher, Schoolsearch has reported. Opening in September, The Forest Nursery will be open to boys and girls from ages three to five, while the Forest Junior School will accept years P1to P3. Bowers has 18 years’ experience in early years education and moves on from Edinburgh Academy where she has worked since 2018. She was previously head of nursery and pre-prep at Cargilfield School in Edinburgh. A qualified forest school practitioner and founder of Can Do Beach School, she was also responsible for establishing the outdoor learning provision for Edinburgh Academy.

The last word

Dai Preston was born in Moriston, Swansea and grew up in the village of Burry Port in South Wales. Educated at Glan-Y-Mor School (a comprehensive secondary school) and Coleg Sir Gar (a further education college in Llanelli), he was the first in his family to study at university, at Aberystwyth. Dai is married with a young son. He is head of Arnold Lodge School (ALS), a co-educational independent school in Leamington Spa, Warwickshire.

What have been your previous roles, including in other sectors?

Prior to teaching and during my university years, I worked in a wonderful Italian restaurant, as well as in a variety of roles for a large high street bank. After learning my craft as a teacher in Wales, I had the good fortune of being appointed to teach history and English at ALS in 2010. My school leadership experience is very much ‘home grown’ and I have fulfilled a number of roles at ALS from being head of department through to assistant head, deputy head, and head of the senior school, before becoming the headteacher in September 2016.

Alongside my role at ALS, I am an executive director with the Independent Schools’ Association and act as the area coordinator for the ISA Midlands region.

How many staff are there in your school?

ALS has around 110 staff with more than 455 pupils across ages four to 18.

What has been the biggest challenge in your job so far?

Since 2016, ALS has transitioned from having 164 pupils to 455 pupils currently and we will hit our maximum capacity of 485 over the next academic year. While our school mission, ethos and values and culture remained at the heart of our school success, the year-on-year growth meant that the school spent a few years with an evolving staffing structure requiring a constant cycle of recruitment and development. We are now very fortunate to have an exceptional staff team with subject experts covering a broad and diverse curriculum offering.

What will be the likely next big challenge?

ALS is the eminent all-through coeducational day school in Royal Leamington Spa. We have had a wonderfully successful few years –shortlisted for awards such as TES Senior School of the Year 2020 and CoEducational Independent School of the Year 2023, and we now have waiting lists throughout the school. We have a truly happy, vibrant school where children excel academically and in their personal development.

The next challenge will be ensuring we don’t stand still or take success for granted. As soon as a school does this, it will begin to decline. Instead, we must seek to continue to develop and innovate so that we deliver exceptional standards for the school community we serve in all areas. As we look forward, our strategic focus and development will rest on the same three words that underpinned our success to date: quality, consistency and culture.

What is the most useful advice you have been given in life?

My grandpa once told me that “you get the job you’re doing”. While working

in a factory, he had offered to help with some of the manager’s workload when the manager needed time away for his family. My grandpa did it without expectation of reward as, to him, it was a simple act of kindness to support his colleague. When the manager’s position eventually became available, grandpa was given the job because he was, in effect, already doing it. This was a huge promotion and came about because grandpa had acted with kindness in supporting his colleague and hard work.

Similarly, my stepfather, Garry, was a fantastic man in so many ways, but his single most defining trait was that he worked hard. He was dedicated and

“Prior to teaching and during my university years, I worked in a wonderful Italian restaurant, as well as in a variety of roles for a large high street bank.”

Dai Preston

he stuck to his word. Though he was a skilled man – a fabricator welder – work was sometimes hard to come by, but he gave 100% to whatever job was placed in front of him to provide for his family. He taught me about hard work, commitment and integrity.

Collectively, these values of hard work, honesty and kindness that I learned growing up and had modelled for me have a wonderful synergy with the values of the community that I lead at ALS.

Who has been the biggest influence on you in your career? How?

The deputy head when I first joined Arnold Lodge, Mr Pollard, was a stalwart of the school. He completed well over 100 terms at ALS and he regularly taught the children of children who he had taught. From joining the school, I looked up to the example Mr Pollard set in school for pupils and staff, but as I began to work in a school leadership role, I learned a great deal from Mr Pollard, particularly due to his hard work, integrity and kindness.

What has been your lasting memory so far?

I’ve had the privilege of being both a teacher and school leader at ALS and so I have so many wonderful memories of the school, both in the classroom and outside it. Having led the school community through so much positive change and the challenges of Covid-19, having the quality of what we do reflected in our ISI Report from May 2023 was wonderful and that moment of elation/relief is perhaps my standout memory.

What are your hobbies/outside interests?

My wife and I have a young son and so most of my interests outside school involve family adventures. We enjoy the odd National Trust visit, a Sunday morning trampoline park or the occasional toddler swim class. I did try and get him to watch some rugby with me during the World Cup but he said “no rugby, thank you, daddy – let’s play trains”. I think it’s pretty clear who’s in charge at home.

“Collectively, these values of hard work, honesty and kindness that I learned growing up and had modelled for me have a wonderful synergy with the values of the community that I lead at ALS.”

What are your personal future plans?

I think that I have the best job in the world and I am privileged to have the chance to be part of such a wonderful school. I’m looking forward to my son starting Arnold Lodge and getting to continue to be part of the outstanding school community. ALS has recently taken ownership of Stratford Preparatory School and having oversight of the two sister schools is an exciting thing to be part of.

We hope you found this edition of Independent School Management useful

We hope you found this edition of Independent School Management useful.

In the next edition we will analyse areas of independent school business relevant to all school leaders.

Topics include:

The head and bursar: what makes this special relationship tick? Interviews with powerful duos.

International schools: the new hot spots for launching an overseas school.

Leadership: lead your school to becoming more commercial.

Strategic change: getting stakeholders to buy into your vision.

Prep schools: punching above your weight through innovation.

Governance: consolidating gains made during the pandemic; alternative models reviewed.

Legal: Information Commissioners Office data protection changes to data subject access requests.

Staff audit: how to save money against overstaffing.

Finance for heads: what you need to know.

Finance: trading subsidiaries and gift aid/difficulty of repatriating profits to the charity.

Risk management: decarbonisation of the school campus.

Ethical investment: the final part in the series.

Effective procurement procedures: is it fit for purpose?

Effective governance

Marketing and admissions: engaging with parents more effectively.

Fundraising: approaching major donors.

News, people moves and more.

We welcome your views and any editorial suggestions.

Please contact: andrew.maiden@nexusgroup.co.uk

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