It negates the option of the sqn funding such flying / gliding. After 2FTS was persuaded to include gliding in ACTO35, I think we were the first sqn to get cadets gliding under the ACT35 provisions - but we paid for it. We want to do it again (BGA site is quite close to us), but of course, completely stymied by the current situation.
There are 2 types of flight school, either approved training organisations (ATOs) and registered training facilities (RTFs). You can train at either type of flight school. From Apr this year, a Registered Training Facility (RTF) had to be registered as either a Declared Training Organisation (DTO) or Approved Training Organisation (ATO) to be able to train for EASA licences and ratings. Of course, with Brexit, the future EASA options are very much cloudy in the crystal ball!
A flying “club” could be more of a shared aircraft facility where you can rent / operate an aircraft as part of club rules; they may, or may not have a pilot qualified as a flight instructor to revalidate skills testing, conduct PPL trg, etc.
However, a flight instructor rating would be the same at any such flying facility.