Financial stewardship
One of the first things I did when I arrived at LGS was to change my title from CEO of the Trust to Principal, as I felt it better described my role as ‘lead’ educationalist. It is vital, of course, that I am business-savvy, especially in the current climate, but I have an excellent Director of Finance and Operations to advise me, and we also have Trustees with a business or financial background.
I was trained as a teacher and have learned through experience, guidance and training how to oversee and monitor our business strategy, in the context of a private school. However, we should never lose sight of the fact that the Trust is actually an educational charity, committed to the provision of education to children/young people. We are governed by volunteers (our Trustees), and we have no shareholders. We do not make a profit but rather make adequate surplus to reinvest in the education of our pupils.
This again is important for you to understand as parents, as we must be faithful stewards of your hard-earned money, ensuring that the surplus is wisely spent, so as to maintain and improve the quality of education and opportunities available to your children. We know that fees have increased very significantly for you over the last year, driven by government measures, and we continue to work hard to make savings without compromising the aforementioned quality, and whilst also doing our best to attract and appropriately reward excellent teachers and support staff who enrich our pupils’ lives.
You will also want to know that LGS Trust has a healthy and secure future, as you will have read about school closures in the media. I can assure you that the financial gearing of the Trust has improved considerably over recent years and that our business plan is robust. Sadly, we will undoubtedly see more independent schools closing as they face impossible financial challenges, but I am confident that Leicester Grammar School will continue to thrive for the sake of its pupils and families for many happy years to come!
The High Court will this morning hand down its judgement on claims regarding the imposition of VAT on school fees in relation to human rights legislation:
R (ALX and others) v Chancellor of the Exchequer and others - Claim nos. AC-2024-LON-004232, AC-2025-LON-000053 & AC-2025-LON-000133
These three claims concern the imposition of VAT on private school fees. Following hearings on 1-3 and 14 April 2025 and subsequent written submissions, the Divisional Court will hand down judgment at 10am on Friday 13 June 2025.
We will obviously let you know if this judgement is likely to change anything. As advised previously, the government may unfortunately disregard the court’s findings, but additional pressure could be applied if the court finds in favour of the claimants.
We remain very grateful to you for your support of our school and committed to doing our very best for your children.
Best wishes,
John Watson
Headmaster and Principal