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Restaurant Takings vs School VAT

139 replies

PollyG23 · 01/04/2025 23:18

Restaurant takings are down YTD and most commentators are saying that it is due to NICS and min wage but surely a big factor is due to the VAT on school fees which is eating into middle class discretionary spending- why is no one mentioning this? (Or maybe I just haven’t seen anything?) What else is getting eaten into? (No pun intended)

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FairMindedMaiden · 07/04/2025 16:45

Amongst other damaging things, last week Labour were forced to reveal in court:
The treasury predicted 54k students forced into state from independent schools. 10% of independent children is the widely accepted number at which the policy tips over & becomes a net cost to tax payers.

That 100 schools would close as a direct result of the policy.

That the January implementation date would be incredibly disruptive and damaging for children, especially those studying GCSEs and A levels.

That in certain locations the state system would be overwhelmed.

Basically they implemented a policy that would close schools, overwhelm state schools, be harmful to children and the tax payer foots the bill. Anybody still arguing for this policy is quite clearly the sort of person you wouldn’t want anywhere near children and has never been a net tax payer.

cardibach · 07/04/2025 15:58

Nobody is discarding them. They are entitled to a free at the point of use education just like everyone else. What’s happening is that policy isn’t being driven for that 7%. As is the case for any minority .

NoBots · 07/04/2025 12:14

There is no logic under the 'only 7%'. That 7% translate into about 800,000 children. Why it is ok for policy makers to be so dismissive about these children? Let's not forget, the impact is on the whole family, then the whole number increases.

However, using the discussion about the number of people being impacted to justify a spiteful policy is totally absurd.

Is 7% a cut off point? What if we are talking about ethnicity percentage? Or LGBTQ+ community percentage? Any subgroup of society that's under 7% deserve to be discarded, like garbage? Should we start talking about double tax all subgroups less than 7%, because all the subgroups don't matter?

Copied from ONS:

"The three largest increases since 2011 were seen in the number of people identifying through:

  • "White: Other White" (6.2%, 3.7 million in 2021, up from 4.4%, 2.5 million in 2011)
  • "Other ethnic group: Any other ethnic group" (1.6%, 924,000 in 2021, up from 0.6%, 333,000 in 2011)
  • "Black, Black British, Black Welsh, Caribbean or African: African" (2.5%, 1.5 million in 2021, up from 1.8%, 990,000 in 2011)."

"The English region with the highest proportion of people who identified with a LGB+ orientation (“gay or lesbian”, “bisexual”, or “other sexual orientation”) was London (4.3%). In London, 2.2% described their sexual orientation as gay or lesbian, 1.5% described their sexual orientation as bisexual, and 0.5% wrote in a different orientation."

PollyG23 · 05/04/2025 08:30

Thanks for the engagement everyone- always enjoy the MN debate. Looks as if most people think that specific YTD restaurant downturn, although directly in line with the timing of VAT increases, is coincidental and it’s just general COL reasons and due to poor quality food&service and people not being willing to pay the high prices. Noted too that eating out was universally listed as a first-to-go expense and, despite people’s perceptions of private school parents being bottomless pits of money, many are now actively economising & reducing day-to-day spend which would have previously gone directly into the local economy.

OP posts:
AyeRight78 · 03/04/2025 23:36

We pay private school fees but we don’t eat out because a 2 course meal with drinks for a family of 4 is usually between £100 and £150. Simple maths tells me that I’m better off using that to buy a week worth of food shopping. It’s not good value.

cardibach · 03/04/2025 23:08

Mielikki · 03/04/2025 22:36

It also claims that over a third of 18-25 year olds have attended private schools.

Quite. Despite @FairMindedMaiden ’s ‘magic of maths’ it’s obviously nonsense.

cardibach · 03/04/2025 23:04

FairMindedMaiden · 03/04/2025 22:41

I didn’t write the article, try and calm down a little bit. Yes it is credible that 20% go to independent schools at some point. You are focused on the 5.6% in a given time period when a child’s education in the U.K. lasts 14 years on average. It’s like saying 11% of the population are smokers but 51% have smoked. How can that be you ask? The magic of maths. You’ll be telling me education tax is good idea next 😀. You may find this useful, but if not please take it up with the BBC and not me https://www.bbc.co.uk/bitesize/topics/ztwx4j6

How condescending. I’m perfectly calm, I’m just pointing out you’ve shared something which patently obviously is daft.
There is absolutely no way 1 in 5 adults in the U.K. went to private schools for even a week or two.

CranfordScones · 03/04/2025 22:59

It does seem that private school VAT is the new Brexit - it explains everything.

I don't believe the Ozempic explanation for lower restaurant takings - it suggest that Ozempic is causing people to buy fewer restaurant meals and takeouts. I suspect that people are cutting back on those things in order to fund their weight loss drugs - and doing so obviously helps their weight loss goals.

FairMindedMaiden · 03/04/2025 22:41

cardibach · 03/04/2025 22:22

Maybe employ some critical thinking - do you really believe it’s credible that 1 in 5 people and 1 in 4 men in the country went to private schools? The numbers make no sense.

I didn’t write the article, try and calm down a little bit. Yes it is credible that 20% go to independent schools at some point. You are focused on the 5.6% in a given time period when a child’s education in the U.K. lasts 14 years on average. It’s like saying 11% of the population are smokers but 51% have smoked. How can that be you ask? The magic of maths. You’ll be telling me education tax is good idea next 😀. You may find this useful, but if not please take it up with the BBC and not me https://www.bbc.co.uk/bitesize/topics/ztwx4j6

Statistics - GCSE Maths - BBC Bitesize

GCSE Maths Statistics learning resources for adults, children, parents and teachers.

https://www.bbc.co.uk/bitesize/topics/ztwx4j6

Mielikki · 03/04/2025 22:36

cardibach · 03/04/2025 21:59

Sorry, that’s just not credible. 7% of children go to independent schools. The percentage of A level candidates is higher (12.2%), but that’s largely because not everyone does A levels…how does that increase to 20%? It’s a very small survey taken by a rather biased source.
Edit: reading further down it claims 1 in 4 adult males went to independent schools. Surely you can see that’s quite obviously nonsense?

Edited

It also claims that over a third of 18-25 year olds have attended private schools.

Another76543 · 03/04/2025 22:28

cardibach · 03/04/2025 22:26

1 in 5 and 1 in 4 men?

I don’t know the overall figures, but it’ll be a fair bit more than the 7% currently using private education, for the reason given above.

cardibach · 03/04/2025 22:26

Another76543 · 03/04/2025 22:25

That’s 7% of the children currently in UK education. Many children don’t attend private school for the full 14 years, with some doing only primary/secondary/sixth form, or a combination. That’s why the figure will be higher when you look at the percentage of people who have attended private school at any stage of their education.

1 in 5 and 1 in 4 men?

Another76543 · 03/04/2025 22:25

cardibach · 03/04/2025 21:59

Sorry, that’s just not credible. 7% of children go to independent schools. The percentage of A level candidates is higher (12.2%), but that’s largely because not everyone does A levels…how does that increase to 20%? It’s a very small survey taken by a rather biased source.
Edit: reading further down it claims 1 in 4 adult males went to independent schools. Surely you can see that’s quite obviously nonsense?

Edited

That’s 7% of the children currently in UK education. Many children don’t attend private school for the full 14 years, with some doing only primary/secondary/sixth form, or a combination. That’s why the figure will be higher when you look at the percentage of people who have attended private school at any stage of their education.

cardibach · 03/04/2025 22:22

FairMindedMaiden · 03/04/2025 22:16

I just looked at the first source AI gave me. Happy for you to take it up with them,

Maybe employ some critical thinking - do you really believe it’s credible that 1 in 5 people and 1 in 4 men in the country went to private schools? The numbers make no sense.

Badbadbunny · 03/04/2025 22:19

Restaurants are struggling because they’re too expensive and service & food quality is crap. They’ve massively gone downhill the last few years.

FairMindedMaiden · 03/04/2025 22:16

cardibach · 03/04/2025 21:59

Sorry, that’s just not credible. 7% of children go to independent schools. The percentage of A level candidates is higher (12.2%), but that’s largely because not everyone does A levels…how does that increase to 20%? It’s a very small survey taken by a rather biased source.
Edit: reading further down it claims 1 in 4 adult males went to independent schools. Surely you can see that’s quite obviously nonsense?

Edited

I just looked at the first source AI gave me. Happy for you to take it up with them,

cardibach · 03/04/2025 21:59

FairMindedMaiden · 03/04/2025 21:39

https://tutorful.co.uk/blog/private-school-statistics-uk-independent-schools

  • 1 in 5 adults in the UK has attended a private school as a child
  • This figure rises to 33% for those in London

Sorry, that’s just not credible. 7% of children go to independent schools. The percentage of A level candidates is higher (12.2%), but that’s largely because not everyone does A levels…how does that increase to 20%? It’s a very small survey taken by a rather biased source.
Edit: reading further down it claims 1 in 4 adult males went to independent schools. Surely you can see that’s quite obviously nonsense?

FairMindedMaiden · 03/04/2025 21:39

cardibach · 03/04/2025 21:04

Can you evidence this? I think it’s very unlikely that one in every 5 children goes to private school at some point.

https://tutorful.co.uk/blog/private-school-statistics-uk-independent-schools

  • 1 in 5 adults in the UK has attended a private school as a child
  • This figure rises to 33% for those in London

Private School Statistics UK 2023 - Independent Schools

Discover how UK private school attendance shapes adult careers in our 2023 statistics roundup. Explore insights with Tutorful from the heart of education.

https://tutorful.co.uk/blog/private-school-statistics-uk-independent-schools

cardibach · 03/04/2025 21:04

FairMindedMaiden · 02/04/2025 22:27

Correct, but 20% of children go at some point (I.e A levels) so people could be saving now they need an extra 20%. Independent schools also support round 350 000 jobs which are now on shakey ground and the 14 billion the schools add to the economy each year is going to go down as more and more schools close. So it’s not actually such a daft question, I just think the brain drain and looming rise in employment resulting from Labour’s myriad of other taxes and ill thought out policies is more to blame.

Can you evidence this? I think it’s very unlikely that one in every 5 children goes to private school at some point.

partyoffivvve · 03/04/2025 20:53

whosaidtha · 03/04/2025 08:09

But what about all the kids pulled out of their private school and going to state school instead. Their parents have an extra 20k a year to spend in restaurants now they aren’t paying school fees.

No they don’t. When my kids were younger I literally would not have been able to do my job if reliant on the state system starting at 9am and finishing at 3pm every day. That is not even half a day in my industry. Many parents use private schools for the on site always available quality wrap around care to enable them to work in their role. It becomes self fulfilling though - I would work a lot less if I didn’t have school fees to pay - or go on more foreign holidays VAT on school fees is just another example of this governments mismanagement though. I don’t know anyone that thinks they are doing an okay job let alone a good one.

partyoffivvve · 03/04/2025 20:35

Of course the schools are also increasing their fees by inflation. Their biggest cost is staff so they are hugely affected by the ni rise.

the council also increased my council tax (a larger than inflationary rise) - maybe they could have just tightened their belt too.

VickyEadieofThigh · 03/04/2025 13:36

Will NOBODY think of Gordon Ramsay?!

Fairyliz · 03/04/2025 12:10

Well I’m retired and could afford to eat out but rarely due, mainly because the food is poor quality and the service whilst not rude is unfriendly.
I actually ate out at the weekend and the waitress pulled a face when I asked for a serviette, despite the fact the restaurant was half empty and she had just been standing around.

HowardTJMoon · 03/04/2025 12:04

milveycrohn · 03/04/2025 11:42

I meant to say that there was a sales tax before the intruduction of VAT
But the VAT made it uniform

Prior to the introduction of the 10% VAT rate in 1973, its predecessor the Purchase Tax was set at 25%.

Also in 1973 the top rate of income tax was 75% plus a 15% surcharge for income from investments over a certain amount.