Chinese investors could help UK private schools struggling financially
Chinese investors could help UK schools struggling financially because Value Added Tax (VAT) on their fees is causing pupil numbers to drop, say leading audit, tax and business advisory firm, Blick Rothenberg.
Winnie Cao, a Partner at the firm, said: “More Chinese investors are taking the opportunity to invest in private schools in the UK. This could be a financial lifeline for schools who have lost pupils because the introduction of VAT on their fees priced out some British parents.”
She added: “Chinese investors are attracted to the longstanding good reputation of UK education. Furthermore, some Chinese parents prefer to send their children to foreign owned schools, but opening them in China is being discouraged. Now that these schools cannot expand in China, sending their children to the UK is often becoming parents’ first choice.”
Winnie said: “An education in the UK is attractive when compared to America and other countries due to US-China friction and the perception of gun crime in the US. UK private schools also benefit as Chinese students fill the places they have lost due to British students leaving.”
She added: “But integrating Chinese owners and a British management team and resolving any cultural conflicts that arise could take time. Certain UK private schools may wish to still focus on providing places for their local community rather than open up to more international students. Or not wish to be owned by someone from outside the UK.”