State and private schools will face ‘significant damage’ from Labour‘s tax raid on fees, teachers warned last night.
In a bid to raise £1.6billion to recruit 6,500 state school teachers, the Government is imposing 20per cent VAT on private school fees from today [WED].
But the Independent Schools Council (ISC) said the policy will hurt children and families – including those in state schools.
And the Tories accused Labour of ‘vindictively’ disrupting ‘thousands of children’s education’ in the middle of the school year – adding pressure to the education system.
Labour pledged to clobber private schools with VAT at 20 per cent, and scrap the 80 per cent relief private schools receive on business rates from April, in their election manifesto.
But the Government’s surprise decision to introduce the VAT change from January 1 infuriated critics, who fear it could force children to move schools mid-year.
On the eve of the policy’s introduction last night, Independent Schools Council CEO Julie Robinson told the Mail that it would ‘undermine’ private education.
‘The Government’s rushed tax policy targeting independent schools will do significant damage to the educational opportunities available to children in independent and state schools,’ she said.
Bridget Phillipson, the Education Secretary, provoked fury over the weekend after claiming middle-class parents support Labour’s tax raid
Shadow education secretary Laura Trott has accused Labour of ‘disrupting thousands of children’s educations’
‘The extent of pupil movement and school closures will become apparent over the next few years, hurting children, families, local businesses and driving up competition for the best state school places.
‘This was avoidable and we continue to seek to work with the government, supporting educational opportunities together. A joint approach would be preferable to undermining a section of education that has much to offer.’
Shadow education secretary Laura Trott added: ‘This rise in VAT will do nothing to help state schools.
‘The Labour Government is disrupting thousands of children’s education vindictively in the middle of the school year, and all it will do will add pressure to the education system.
‘It will be pupils, parents and teachers from the state sector that will end up paying the price.’
Research by the Independent Schools’ Bursars Association (ISBA) earlier this year found that 11per cent may contemplate closing as a result of the VAT change.
Assuming the survey was broadly representative of ISBA membership, it estimated around 141 schools might close – piling pressure on the state sector.
Bridget Phillipson, the Education Secretary, provoked fury over the weekend after claiming middle-class parents support the tax raid.
Schools such as Eton College (pictured) will be impacted by the introduction of Labour’s tax hike
She claimed to be ‘the voice of pushy middle-class parents’, who she insisted have mostly been priced out of sending their children to private schools.
Ms Phillipson said the average private school fee had reached the ‘considerable sum’ of about £18,000 a year.
She added: ‘Middle-class parents in good professional jobs with housing costs just can’t afford that level of fee and they want brilliant state schools.
‘This policy allows us to raise more money to invest in what really matters for families.’
An HM Treasury spokesman defended the policy last night, saying: ‘Ending tax breaks for private schools will raise £1.8 billion a year by 2029, which will help the 94per cent of children in state schools to achieve and thrive.
‘Schools and parents have had nearly five months to prepare for the changes and it is right that we introduce them as soon as possible to help deliver our education priorities.’
