Expert interview: David Faries on non-fee income, diversification and the future of independent schools
This is a written interview based on a recorded conversation with David Faries, Commercial Business Director at King’s School, Rochester in June 2026.
As VAT, cost pressures and demographic changes force independent schools to think differently, we spoke to David Faries about his experience as a leader in the sector. David reflects on the real challenges facing schools, and the need for them to become more commercially minded without losing sight of their educational purpose. In this fascinating conversation, David shares his thoughts on why non-fee income, sustainability and a more outward-facing model will matter increasingly in the years ahead.
Q: Your role is relatively new. What was the brief when you took on the role of Commercial Director at King’s School, Rochester?
My current role is Commercial Business Director. Two years ago, it’s fair to say, the role didn’t exist. I was at King’s Rochester as Interim Bursar and, as the threat of VAT started to loom, the school governors decided to look at how we could generate more non-fee income, away from the cycle of annual fee increases as the main source of financial growth.
Our commercial strategy had two strands initially: generating non-fee income and reducing costs in certain areas.
Sustainability was the first area we focused on, particularly energy costs across a diverse estate with buildings of various ages, multiple boilers, a swimming pool and few solar panels or alternative energy sources.
From a numbers point of view, my role has developed quite significantly. In my first year in 2024, we were generating approx. £80,000 of non-fee income from lettings and hirings; this year, if all goes to plan, that figure will be just under £230,000.
Q: You spent your early career in banking before moving into education. How did you make the move into a new sector?
Before moving into education, I spent 35 years in the City in banking. I had a very traditional start: I left school, went straight into banking and began in back-office roles before moving into business development, lending, risk assessment and people management. Over time I worked across retail, commercial and private banking, including roles at NatWest, Coutts and C.Hoare & Co.
After 35 years, I began looking for a new challenge and started to explore whether my skills were transferable. I applied for a Bursar role at a local school who were looking specifically for someone from outside education, who could bring a different approach. I got the job during Covid, which made for an unusual introduction, but it also gave me some time to understand the theory and structure of how independent schools operate.
Q: Coming in from outside the sector, what struck you most about how independent schools operate?
I think independent schools are almost a unique industry! What other industry sees all its customers disappear every six or seven weeks, along with most of the staff? That rhythm struck me early on, particularly because so much estate capacity stood empty during holidays and half terms.
For me, one of the biggest opportunities lies in recognising that many independent schools are, in effect, significant real estate businesses, as well as education providers. They sit on buildings, land and facilities that can remain unused for long stretches of the year. At King’s Rochester, this mindset has led to a 50-week approach to operations, with growing focus on events, lettings, sports hire and other commercial activity, alongside the school’s core educational mission.
Q: What have you learned from working alongside colleagues in education?
Although I sit outside teaching itself, I’ve had to learn how to build a business around the educational journey and safeguarding of the children. I have huge respect for the teaching staff, their expertise, their patience, their skill and their commitment, particularly through Covid and in the face of ongoing pressures from technology and changing pupil needs.
I’ve also seen a shift in culture. Early on, there could sometimes be a sense of ‘them and us’ between teaching and non-teaching staff, but I believe that is changing. As commercial activity begins to generate visible value, there is more recognition of the role non-teaching teams play behind the scenes. At King’s Rochester there is now more of an ‘as one’ culture, with growing awareness that commercial activity can make a meaningful contribution to financial resilience.
Q: When you look at the next few years, what do you see as the biggest pressures and opportunities for the sector?
I think these are unprecedented times. VAT, the removal of business rate relief, and demographic pressures are major challenges for the sector. I fear some schools will close, some will merge, while stronger schools will need to become more focused, more strategic and tighter in how they operate.
I expect significant consolidation over the next five years, with fewer schools in operation and some long-established institutions disappearing or merging. But I also believe the schools that remain will look different. Education will still be the prime focus, but non-fee income will need to become a much more important part of the model. In the US, similar schools generate around 35% of their overall income from non-fee income sources and in the UK it’s less than 3%. That has to change.
Q: What does that diversification agenda look like in practice at King’s Rochester?
Our diversification strategy focuses strongly on making the most of our assets, essentially meaning fuller use of facilities that would otherwise stand empty. At King’s Rochester, that includes our sports facilities, but also accommodation areas, performing arts spaces, music facilities, classrooms, catering facilities and a recently refurbished STEM facility. We’re currently exploring STEM-focused holiday and evening courses and partnerships with local organisations involved in training science teachers and engineers.
In the Kent area, several theatres and performing arts centres have closed in recent years, which creates a real opportunity for our performing arts spaces to support local groups, while generating income. On the boarding side, falling pupil numbers have led us to consolidate into one boarding house during term time, while exploring ways to use the second property more flexibly. Rather than changing its use significantly, we’re looking at how it can accommodate visiting school groups, immersion programmes, touring sports teams, music and choir groups and other short-stay users, particularly given Rochester’s history, central location and transport links into London.
Alongside income generation, cost reduction is a key part of our strategy. Energy efficiency is an obvious area for improvement, from heating rooms only when needed to addressing older infrastructure and the absence of solar panels and other alternative energy sources.
Sustainability matters not only financially but increasingly to pupils and parents, and we’ve developed a sustainability strategy that connects with the curriculum as well as the operational side of the school.
Importantly, putting non-fee income to one side for a moment, King’s Rochester, like many other independent schools, has a long history of providing public benefit and supporting the local community. Public benefit is often through opening our facilities to local state school children, providing training and CPD opportunities to state school teachers and supporting local charities in various ways. Despite the recent changes to VAT and taxation, we remain fully committed to expanding our public benefit initiatives.
Q: How do you think school leadership roles are evolving in response to these pressures?
I think senior leadership in schools is becoming more specialised. The Head or Principal’s role is increasingly a more broader CEO role, while the traditional Bursar role is evolving into something closer to a CFO position. At the same time, operational responsibilities are being broken up into more specialist functions, including health and safety, risk and commercial leadership.
That’s not a criticism of previous generations of school leaders; it’s a reflection of the reality schools now face. Profit and loss, cash flow, risk registers and financial resilience are becoming central to senior leadership conversations.
Q: Will that also change the way schools think about funding and investment?
I believe it will. Many schools have historically been cautious about debt, but diversification will almost certainly require more investment in facilities if schools want to create high-quality spaces that attract external users and support their strategy. That could mean a conservative, but more intentional use of debt in the future, provided affordability remains strong.
Q: If there is one message you want the market to hear, what is it?
It’s a simple one: independent schools are open for business. I think many schools, including King’s Rochester have historically not marketed themselves particularly well, and many local people still do not realise what facilities are available or how they might be used. From sports and STEM to performing arts, music facilities, meeting rooms, dining spaces and events areas, I see growing opportunity for schools to become more visible and more outward facing.
Importantly, I don’t see commercial partnerships purely as a source of revenue. Take our partnership with Kent Cricket, for example: hiring out our pitches and indoor nets has also increased local awareness of the school and begun to support admissions. In that sense, the strategy is not just about generating income for the profit and loss account; it is also about raising visibility, building relationships and creating secondary benefits that strengthen the school’s position over time.
David Faries is the Commercial Business Director at King’s School Rochester.
Following a 35-year career in banking, David moved into the independent school sector in 2021, initially as a Bursar and more recently in senior operational and commercial roles. In his current role David uses his experience and expertise to formulate and implement strategic initiatives designed to generate non-fee income and achieve greater operational efficiencies.
King’s School Rochester is a thriving, independent co-educational, all through day and boarding school in Rochester, Kent. Founded in 604 AD, the school is a cathedral school and is part of the foundation of Rochester Cathedral.