UK private schools grappling with declining pupil numbers in the wake of VAT being applied to fees could turn to Chinese investors for financial support, according to audit and advisory firm Blick Rothenberg.
The firm’s partner, Winnie Cao, said that while the tax change has priced some British families out of independent education, strong demand from Chinese parents is opening new avenues for investment.
She noted that Chinese investors are drawn to the longstanding prestige of UK schooling, with geopolitical tensions limiting opportunities to expand foreign-owned schools in China itself. “Now that these schools cannot expand in China, sending their children to the UK is often becoming parents’ first choice,” Cao said. Britain’s reputation as a safer alternative to the US, where gun crime and strained US-China relations weigh on decision-making, is also bolstering interest.
For independent schools under pressure, Chinese-backed capital could provide a financial lifeline as international students replace those lost domestically. However, integration challenges remain: balancing foreign ownership with British management, resolving cultural differences, and ensuring schools continue to serve local communities. Some institutions, Cao cautioned, may be reluctant to cede control to overseas investors or risk diluting their local identity.
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Chinese investors eye UK private schools as VAT on fees drives out domestic pupils