News | 17 April 2025
CEO interview: “The white paper on profits does not change our focus, which is to give all our students a really good education”
The first part of the government white paper about profits in schools was presented on April 7. But what do the proposals mean for parents who have children at Internationella Engelska Skolan (IES) and what happens now? We had a chat with Lars Jonsson, CEO of IES.
The investigation into profit in schools has now been presented. What do you think about it?
To begin with, it was expected. We have been working with this topic for a long time and are familiar with the directives, and what is written there is almost always what is also presented.
Is Internationella Engelska Skolan threatened?
No, it is not. We have a very strong foundation to stand on, with high-quality education, excellent school results and fantastic staff, teachers and school leaders. This has given us the trust of parents and students for 32 years. Today, some 31,000 students attend our schools and I am confident that we will be able to continue to manage that trust well in the future.
In what context should the white paper that has now been presented be seen?
Over the past several months, a number of proposals have been put on the government's table about important improvements for schools, such as an improved grading system, a new curriculum and a greater mandate for principals to maintain a safe and calm learning environment in schools. We are positive about these. They address real challenges in many schools.
However, we do not believe that the proposals in this inquiry will be helpful for Sweden's students. This inquiry has a different background than the other reforms, namely a political debate about profits in welfare. This is noticeable in what has now been presented. The investigator's task has been to investigate how profits in schools can be limited or prohibited in a number of different situations. In other words, it is assumed that profit restrictions lead to more money going to students and that this leads to better quality. This starting point is based on the idea that independent schools are primarily driven by making profits and dividends and that they are prepared to decrease quality in order to achieve profits. I believe that this is a biased image of the driving force of independent schools and in the case of IES, it’s completely incorrect. At IES, there hasn’t been any dividends since we were delisted from the stock exchange in 2020 and we have mainly used our surplus to reinvest in new or existing schools. I know that everyone at IES works every day to ensure that our students receive knowledge for life and the best possible education.
What do you say about the proposals that have been presented?
The most important thing is to emphasize that they are only proposals in a white paper at this point. The investigator has been asked to answer a number of questions - thirty in this case - and he has presented a proposal on how to solve what the directives require. Then a large number of consultation bodies will give their feedback, and we will do that too. After that, the government will formulate a bill to be adopted by the parliament. How that bill will look, or if it will pass, we do not know at all today.
Having said that, I want to be clear that as the proposals look today, I do not believe that they would lead to better quality in schools. Firstly, only independent schools are covered, which leads to more expensive administration for independent schools. In the name of fairness, I think that the reforms that are put forward should apply to all school operators. Currently, about 16 percent of students in Sweden attend an independent school, while about 84 percent attend a municipal school. Secondly, it looks like the proposals primarily risk pushing forward a more extensive control apparatus for the finances of independent schools, and that is money better spent on students and their education. IES has margins to cope with both increased administration and other challenges, but there is a risk that new rules will draw resources away from our core mission. We need to be clear about that in our feedback to decision-makers.
But isn't it reasonable not to be able to withdraw profits in the event of quality deficiencies?
Quality deficiencies should of course be addressed when they arise, but limiting profits in the event of quality problems is a very blunt tool. We would rather see the Swedish Schools Inspectorate (Skolinspektionen) tighten the thumbscrews on schools that fail their students through harsher sanctions or by closing schools. We believe that does the job better.
Don't the owners of IES earn a lot of money?
We are a large and successful school provider, thanks to all the good work that everyone does in our schools. IES has a large turnover, in numbers, but the margin is quite low, just over four per cent. That margin is used to be able to plan long-term and we also have very long-term commitments, for example rent. If you look at the development of recent years regarding demographic developments, the weak development of school vouchers and high inflation, it is important to have a surplus in order to be able to face tougher times and focus resources on our core business, which is education.
What happens now?
We are now analyzing the 700 pages of this white paper, and then we will submit a consultation statement. We still have a lot of time to influence the proposals and to respond to factual errors, about independent schools and about IES. We are also in close dialogue with our trade association Almega Utbildning and with other independent schools in order to be able to speak with a strong voice on this issue. Our focus stays the same, that all of our schools can continue to do what they do best, which is to offer a truly excellent education.