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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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If VAT is added on Private School Fees, then it will be added onto University fees as well

539 replies

AgathaCrispee · 31/01/2024 08:06

Does it worry you that this new policy of adding VAT on educational fees will also be applied to university fees as well?

AIBU to think this will put university out of the reach of the majority of families who will support their kids through Uni?

Also, for those who do go the level of debt they will come out with will be really big.

If they can apply VAT to private school educational fees then they've setup a case for Independent schools argue that it must be applied to Uni as well.

Is this going to create a situation where only the wealthy can send their kids to Uni?

I'm wondering why no one is asking this question!!

OP posts:
Thread gallery
18
LongTimeListener1 · 31/01/2024 11:31

EasternStandard · 31/01/2024 11:08

Labour could even..

Clarify in a statement

I know it’s not their forte but maybe time to practise

I mean sure, but that wouldn’t be very smart because right now it’s only a few deranged people on Mumsnet who believe this is even remotely likely.

LongTimeListener1 · 31/01/2024 11:32

AgathaCrispee · 31/01/2024 11:06

I don't think they will slip any increase through.

I think it will be used as a legal challenge to adding VAT onto private school fees, which will open up scrutiny on University fees and by the law of unintended consequences could make University fees liable for VAT.

That makes no sense at all.

Araminta1003 · 31/01/2024 11:32

I agree that these VAT on private school threads are going like the Brexit and Covid threads…

But what did we learn from those?

PrincessW11 · 31/01/2024 11:32

LongTimeListener1 · 31/01/2024 10:40

Your worry shouldn’t be about whether they add VAT to university fees (they won’t), your worry should be that universities are chronically underfunded and they’re going to have to find the money from somewhere. Most likely by increasing the fee cap.

And you've hit the nail on the head, the fact that £9250 annual tuition per domestic student isn't covering the course cost and fees cap will have to rise one way or another;all well & good to be outraged at foreign students taking larger % of places but they pay domestics fees x3

EasternStandard · 31/01/2024 11:33

LongTimeListener1 · 31/01/2024 11:31

I mean sure, but that wouldn’t be very smart because right now it’s only a few deranged people on Mumsnet who believe this is even remotely likely.

Feel free to let the delete it now pp know they’re worrying about nothing

Araminta1003 · 31/01/2024 11:35

People should air their opinions on Mumsnet because it represents a slice of history. I enjoy reading some of the old threads and there is a distinct “I told you so” vibe I get from some of them. This is a democracy. There are plenty of people on these threads that are not partisan. Those who want to shut them up are clearly worried about this policy themselves because typing its flaws out is what scares them the most.

LongTimeListener1 · 31/01/2024 11:36

Another76543 · 31/01/2024 11:27

Admittedly we haven’t seen any manifesto yet, but I do think it’s a genuine question to ask where all the funding is coming from to finance all the spending plans. At the moment, we are being told that taxing private schools and non doms is the answer to all the country’s woes. It really isn’t. To increase spending on state services to any meaningful level will involve decreased spending elsewhere, borrowing more, or raising taxes (be that income tax, national insurance, VAT etc).

If the Labour Party are planning to abandon the longstanding VAT education exemption, and thus going against EU law, it’s a valid question to ask what else they might do.

The fee cap is going to increase. This nonsense thread about whether or not they’re going to accidentally put VAT on university fees because they didn’t read the small print is just a distraction.

LongTimeListener1 · 31/01/2024 11:38

Araminta1003 · 31/01/2024 11:35

People should air their opinions on Mumsnet because it represents a slice of history. I enjoy reading some of the old threads and there is a distinct “I told you so” vibe I get from some of them. This is a democracy. There are plenty of people on these threads that are not partisan. Those who want to shut them up are clearly worried about this policy themselves because typing its flaws out is what scares them the most.

Happy to clarify that I am not worried about VAT on university fees. Absolutely bananas that telling people there’s nothing to support their hare brained ideas is actually in fact more evidence that it’s going to happen.

Araminta1003 · 31/01/2024 11:38

“And you've hit the nail on the head, the fact that £9250 annual tuition per domestic student isn't covering the course cost and fees cap will have to rise one way or another;all well & good to be outraged at foreign students taking larger % of places but they pay domestics fees x3”

Well most EU countries decide to fund tertiary education properly on behalf of their own students because they take a long term view on productivity. However, clearly we are loving going more and more US style in all respects.

LongTimeListener1 · 31/01/2024 11:38

EasternStandard · 31/01/2024 11:33

Feel free to let the delete it now pp know they’re worrying about nothing

What?

Another76543 · 31/01/2024 11:39

Dibblydoodahdah · 31/01/2024 11:30

As a fellow lawyer, I was surprised that it took Starmer so long to work out that ending charitable status would be problematic. It certainly didn’t instil any confidence in me voting for him.

I couldn’t agree more. The Labour Party started off a few years ago voting to abolish private schools altogether, and acquiring the infrastructure for the state. They abandoned that plan as they clearly hadn’t thought it through (despite getting as far as voting for it at conference).

Then they told everyone that they would abolish charitable status to solve the tax issue. Despite lots of people telling them that not all schools were charities and that the VAT issue was separate, they continued with this plan. It’s only relatively recently that they seem to have realised that plan wasn’t workable, and wouldn’t achieve the desired consequences anyway, and now they’ve abandoned it.

They are now saying they’re going to change the VAT legislation. Given the previous plans weren’t thought through and that even the most basics of VAT law weren’t understood, are we really supposed to have confidence in this latest plan working? Do people honestly think that they’ve thought all the different scenarios through and that there won’t be unintended consequences?

The Labour Party are tying themselves in knots over a policy which will raise a relatively tiny amount of revenue, even using the most optimistic estimates. It’s ridiculous and not properly thought out. A total shambles.

EasternStandard · 31/01/2024 11:39

LongTimeListener1 · 31/01/2024 11:38

What?

There’s a poster scared this thread will make people think it’ll happen scroll back about five minutes

LongTimeListener1 · 31/01/2024 11:40

EasternStandard · 31/01/2024 11:39

There’s a poster scared this thread will make people think it’ll happen scroll back about five minutes

This place is completely mad sometimes. Good grief.

Cvoight · 31/01/2024 11:41

Look, even the lowest of right wing hacks would struggle to get a piece published suggesting VAT on school fees will lead to VAT on university fees.

On the other hand, they would stand a decent chance with a piece about how concerned people are about VAT school fees leading to VAT on university fees, as evidenced by this thread.

Just saying.

AgathaCrispee · 31/01/2024 11:41

However, clearly we are loving going more and more US style in all respects

This is what concerns me too.

OP posts:
EasternStandard · 31/01/2024 11:42

Dibblydoodahdah · 31/01/2024 11:30

As a fellow lawyer, I was surprised that it took Starmer so long to work out that ending charitable status would be problematic. It certainly didn’t instil any confidence in me voting for him.

Yes all those spiralling on the existence of this thread and getting put out at op asking a question

Even Starmer took some time

Another76543 · 31/01/2024 11:43

LongTimeListener1 · 31/01/2024 11:36

The fee cap is going to increase. This nonsense thread about whether or not they’re going to accidentally put VAT on university fees because they didn’t read the small print is just a distraction.

It might not be accidental. It might be intentional. Given that only 35% of the population go on to higher education, it’s quite privileged to go to university. Is it fair that those 35% get an advantage over the other 65% and yet don’t have to pay VAT? It’s the same argument many use for taxing private schools, after all.

TheLostOnes · 31/01/2024 11:44

EasternStandard · 31/01/2024 11:33

Feel free to let the delete it now pp know they’re worrying about nothing

I may be wrong but I'm pretty sure the pp was saying that they thought their own post would be deleted (presumably for questioning the intention of the op) rather than demanding that the whole thread be deleted.

LongTimeListener1 · 31/01/2024 11:44

Another76543 · 31/01/2024 11:43

It might not be accidental. It might be intentional. Given that only 35% of the population go on to higher education, it’s quite privileged to go to university. Is it fair that those 35% get an advantage over the other 65% and yet don’t have to pay VAT? It’s the same argument many use for taxing private schools, after all.

Oh for the love of god. If they want to increase the cost to the user of university education then they’ll do it through the fee cap. And they’re going to increase the fee cap.

Dibblydoodahdah · 31/01/2024 11:45

Cvoight · 31/01/2024 11:41

Look, even the lowest of right wing hacks would struggle to get a piece published suggesting VAT on school fees will lead to VAT on university fees.

On the other hand, they would stand a decent chance with a piece about how concerned people are about VAT school fees leading to VAT on university fees, as evidenced by this thread.

Just saying.

Given that the UK would be the only country in Europe (and I believe the World) charging sales tax on education it is perfectly reasonable for people to wonder what they will propose adding VAT to next.

MasterBeth · 31/01/2024 11:45

About 6% of pupils go to private schools.

Up to 40% of 18 year olds go to university.

Putting VAT on private schools to spend more money on state schools is therefore a popular policy. Putting VAT on student loans and fees wouldn't be.

So, no, Labour is not going to create a situation where only the wealthy can send their kids to Uni.

AgathaCrispee · 31/01/2024 11:46

Another76543 · 31/01/2024 11:39

I couldn’t agree more. The Labour Party started off a few years ago voting to abolish private schools altogether, and acquiring the infrastructure for the state. They abandoned that plan as they clearly hadn’t thought it through (despite getting as far as voting for it at conference).

Then they told everyone that they would abolish charitable status to solve the tax issue. Despite lots of people telling them that not all schools were charities and that the VAT issue was separate, they continued with this plan. It’s only relatively recently that they seem to have realised that plan wasn’t workable, and wouldn’t achieve the desired consequences anyway, and now they’ve abandoned it.

They are now saying they’re going to change the VAT legislation. Given the previous plans weren’t thought through and that even the most basics of VAT law weren’t understood, are we really supposed to have confidence in this latest plan working? Do people honestly think that they’ve thought all the different scenarios through and that there won’t be unintended consequences?

The Labour Party are tying themselves in knots over a policy which will raise a relatively tiny amount of revenue, even using the most optimistic estimates. It’s ridiculous and not properly thought out. A total shambles.

Couldn't agree more.

We need clarity on this proposal and I hope they provide detail in their manifesto.

Assuming something won't happen because it doesn't make sense didn't work during covid or Brexit. We need to hold our politicians up to scrutiny more on what they're proposing.

OP posts:
Cvoight · 31/01/2024 11:47

TheLostOnes · 31/01/2024 11:44

I may be wrong but I'm pretty sure the pp was saying that they thought their own post would be deleted (presumably for questioning the intention of the op) rather than demanding that the whole thread be deleted.

Well yes, but Im not sure some posters want to pay that much attention when they would rather get in a tizz suggesting I want to shut down their free speech 😁

EasternStandard · 31/01/2024 11:47

Dibblydoodahdah · 31/01/2024 11:45

Given that the UK would be the only country in Europe (and I believe the World) charging sales tax on education it is perfectly reasonable for people to wonder what they will propose adding VAT to next.

Yep. People accepted and welcomed that outlier pdq

Tax the rich vibe gets people going

Cvoight · 31/01/2024 11:47

TheLostOnes · 31/01/2024 11:44

I may be wrong but I'm pretty sure the pp was saying that they thought their own post would be deleted (presumably for questioning the intention of the op) rather than demanding that the whole thread be deleted.

Well yes, but Im not sure some posters want to pay that much attention when they would rather resort to oft-repeated suggestion that I want to shut down their free speech 😁