UK private schools rush to expand overseas as profits soar

theguardian.com:

English private schools are rushing to open lucrative satellite academies abroad, including in some of the world’s poorest countries, to funnel back millions of pounds in profits to pay for their charitable obligations.

Cambodia, Bangladesh and Vietnam are among the latest targets for English private schools aiming to expand overseas, in many cases in partnership with property developers looking to build luxury developments or even entire cities.

Some private schools say they are motivated to increase their revenues by fears that an incoming Labour government will add VAT to school fees and strip them of charitable status, creating financial difficulties for them.

Research by the Private Education Policy Forum (PEPF)has found that private schools with charitable status are making record-breaking profits from their overseas subsidiaries and satellites, with 40 British schools taking in £29m in 2020-21, compared with £1.6m in 2011-12.

A spokesperson for PEPF said: “This research shows that private schools are using their profits from operating in mainly developing countries to maintain their status in England. Given that only 1% of places in private schools are free for poorer pupils, and the average fee is now around £17,000 a year, the ethics of such a model may be seriously questioned by policymakers.”

Julie Robinson, the chief executive of the Independent Schools Council (ISC), said: “As schools look for ways to reduce their reliance on fee-based income, some have taken up opportunities to establish international campuses and partnerships. The money generated is invested back in education in the UK, usually through bursaries and scholarships.”

But Francis Green, a professor of work and education economics at University