King Williams College has been given loans totalling more than £2m from taxpayers.
Enterprise Minister Tim Johnston confirmed the loans, which are due to be repaid over five years, amid criticism from some members.
The repayable grant, amounting to £2.2m, was approved under the Department for Enterprise’s Financial Assistance Scheme (FAS) following departmental and Treasury Board scrutiny.
Mr Johnston defended the decision, citing the college’s economic impact as a major employer in the south of the island, with over 185 staff and an annual Exchequer benefit of £1.3m.
He also highlighted the school’s local spending of £2.8m and the estimated £1m contributed by international boarding students.
Inequality
Critics, including Joney Faragher (Manx Labour Party, Douglas East) warned of “exacerbating educational inequality”.
She said: “It feels wrong that government would be propping up private education while state schools face such financial pressures.”
This sentiment was shared by others who pointed to the DESC scrapping round to save a few thousand pounds on swimming lessons.
Mr Johnston reiterated the FAS’s focus on economic benefits but avoided committing to public outcome conditions.
The minister was also forced denied any conflict of interest despite being a former pupil, stating he has had no relationship with it since he left.
Challenges
Mr Johnston told Keys that the department has received seven applications from King Williams College between 2020 and 2024, although three were withdrawn and did not progress.
He said: “Two applications have been completed and paid. One has been completed, although not yet paid, and the most recent application has resulted in an offer being made, which was accepted last week.”
Speaking of the challenges the private school has faced, he said: “Clearly, there’s been ongoing concerns from King Williams College since before the last United Kingdom general election, when it was made clear by the Labour Party at the time that they would be considering bringing in VAT on school fees as part of their election manifesto.
“As members will be aware, that has now happened, and that is obviously a major issue, and has led to the closure of several public schools in the UK.”
However, Mr Johnston “commended” the school for the way it has faced these challenges, which included selling off its Buchan site to developers.
Eligibility
Concerns were also raised about eligibility, as the FAS criteria do not explicitly mention education providers.
Lawrie Hooper (Lib Vannin, Ramsey) pushed Mr Johnston on whether the Education Department had endorsed the application, a requirement for critical services under the scheme.
Mr Johnston said that it had Treasury approval, he did not clarify the Education Department’s involvement.
The interchangeable use of “grant” and “loan” further fuelled scrutiny with Chris Thomas calling for the minister to publish the exact terms
Mr Johnston later confirmed the loan carries a 1% above base rate interest from year three, with full repayment due within five years.
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