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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

To think taxing private schools...

749 replies

maddening · 24/05/2024 19:12

I have no skin in the game, my dc is at a secondary state school. I have no strong views on private schools - although I think state should offer the same level for all dc.

However, looking at the maths I am not convinced the cost and benefits of this proposal works out - apparently vat will bring in 1.3 billion - however if the 554,000 children in private schools had to be schooled in state schools that would cost 4 billion - aibu to think this is not the win that many are led to believe? It is more divisive imo and driven by ideology.

If the private school parents are saving the state 4 billion a year then I don't have an issue with the vat personally.

I think that there could be more requirements placed on private schools in order to retain the vat free status, such as sharing facilities with local state schools and more subsidised places perhaps, or means tested vat relief for parents?

OP posts:
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Didimum · 24/05/2024 21:23

maddening · 24/05/2024 21:21

No one made you thread police- feel free to write on or read whichever threads you like, there is no need to be unpleasant

And there is no need to start the umpteenth thread on this subject. Again and again and again and again.

Didimum · 24/05/2024 21:25

maddening · 24/05/2024 21:20

Just don't stick around if you don't want to discuss it.

Well it makes the thread a bit different, doesn’t it? It may as well have something going for it.

maddening · 24/05/2024 21:25

Didimum · 24/05/2024 21:23

And there is no need to start the umpteenth thread on this subject. Again and again and again and again.

Again not your call to make, this is a public forum and I am posting within the rules.

OP posts:
maddening · 24/05/2024 21:26

Didimum · 24/05/2024 21:25

Well it makes the thread a bit different, doesn’t it? It may as well have something going for it.

Not really, there are tons of posts like yours on many threads.

OP posts:
Didimum · 24/05/2024 21:27

maddening · 24/05/2024 21:26

Not really, there are tons of posts like yours on many threads.

For a fantastically good reason, you might think.

Cottagepiefortea · 24/05/2024 21:28

I’m not convinced on the maths either, I’m not sure it’s mathsing but that’s not what this is about. Unfortunately Labour are using this policy (which in principle I don’t disagree with) to stoke up a culture war. I hoped they were better than this.

One thing I rarely hear mentioned is how this is going to impact LEAs who send many children to private special schools and are unable to currently fund this (and are is massive debt as a consequence).

Newuser75 · 24/05/2024 21:34

Mnetcurious · 24/05/2024 20:17

Well not all of the 554k private pupils will suddenly move to state just because the fees have increased by 20% will they? Most parents will still be prepared to pay for their children to have an advantage.

Not all of them will move no, but some will. And they will then put pressure on an already struggling state system.
And for people who are saying that there is a falling birth rate, yes that's true but there are still the same number of year 3,4,6, etc kids who will need places.
SEN kids like my son being put into large classes with less support and unable to cope. What will happen then.
And certainly for my child we did not even consider putting him in private school to give him an advantage. He has many SEN conditions and I believe wouldn't cope at all in a large class with less support. We didn't put in in private for an advantage, we put him in private for as level a playing field as possible.

Snugglemonkey · 24/05/2024 21:37

todayortomorrow · 24/05/2024 20:29

No, I support it because the country is absolutely broke and it's going to raise much needed money for our public services. I'd rather the money came from taxing luxury spend by wealthy people than spending less on the people and services that need it.

Do you understand that it is not? I realise you want it to. But it won't. It is the brexit bus. There are many people pointing out that at best, there will be no substantial gain, at worst it will be a monumental fuck up. This will not raise money.

Londonscallingme · 24/05/2024 21:37

1dayatatime · 24/05/2024 19:39

Because a large number of voters will support it even if it actually costs more to the taxpayers than it raises.

It's the politics of envy.

What I don't understand is why stop at private education- surely it would be more "fair" to tax private health care that allows people to jump NHS queues whilst others have to suffer in pain?

just to clarify as I’m not sure of your position; you’d be ok with adding vat to school fees if they also added vat to private health care? Its the inequity that’s problematic?

maddening · 24/05/2024 21:38

Cottagepiefortea · 24/05/2024 21:28

I’m not convinced on the maths either, I’m not sure it’s mathsing but that’s not what this is about. Unfortunately Labour are using this policy (which in principle I don’t disagree with) to stoke up a culture war. I hoped they were better than this.

One thing I rarely hear mentioned is how this is going to impact LEAs who send many children to private special schools and are unable to currently fund this (and are is massive debt as a consequence).

Edited

I agree cottage, imo this is v ideological which is why it ends up in a culture war.

OP posts:
EasternStandard · 24/05/2024 21:38

Snugglemonkey · 24/05/2024 21:37

Do you understand that it is not? I realise you want it to. But it won't. It is the brexit bus. There are many people pointing out that at best, there will be no substantial gain, at worst it will be a monumental fuck up. This will not raise money.

Yep

Londonscallingme · 24/05/2024 21:40

lemonmeringueno3 · 24/05/2024 20:38

It's a bit like how preventing higher earners from accessing child benefit costs more to administer than just making it a universal benefit. People just enjoy rich folk squirming especially when they're struggling themselves.

But I don't believe it would cost £4 billion. Most would find the VAT and the treasury would benefit. Those who couldn't would be offered a place in a school with capacity.

Hmmm - I’m not sure that’s true re. Child benefit but I’d be interested to find out… do you have a source?

JacketPotatoFoodOfTheGods · 24/05/2024 22:00

Imagine all schools were good?

Chocolatelover13 · 24/05/2024 22:05

It’s a headline grabbing policy by Labour. It won’t pay for 6500 teachers for the state sector and won’t miraculously improve state schools.

CranfordScones · 24/05/2024 22:19

Here's a radical idea for you. Why don't we subsidise private schools? Say, a few grand for every British pupil they take?

Actually, not that radical - it's what they do in Denmark. They also have subsidies in Ireland, Switzerland, Spain, Belgium and Sweden.

It would be an opportunity to widen access to private schools. But Labour just believe in the politics of envy. The only outcome of their policy would be our private schools taking even more pupils from China.

izimbra · 24/05/2024 22:30

Private schools on average have half the number of pupils per teacher than state schools.

Which means that they have plenty of scope for reducing the number of staff in order to cut costs, which would allow them to reduce fees by enough to make the 20% VAT imposition affordable for parents.

SabrinaThwaite · 24/05/2024 22:34

DayDreamer7979 · 24/05/2024 20:23

Not that I believe the level of attrition will be this high, but If 30% of privately educated children switch to state schools, there will be zero fiscal gain and the state schools which, already struggling, will face additional strain to accommodate them.

Additionally, every private school will be able to reclaim VAT on capital expenditure costs in some cases going back many years, and then on all future VAT qualifying costs. That VAT rebate will be hundreds of millions minimum and paid by the taxpayer.

Also the majority of boarders outside of London, are children from military families. They are funded (up to 90%) by the CEA (Continuity of Education Allowance).

This value is circa £300million per annum currently, so an additional £60 million will be paid to meet the VAT on their fees.

Point is, this policy is ill thought out. The analogy earlier of private healthcare is comparable.

If VAT is added to Uni fees in the future, many supporters of this policy would be quite upset. If VAT is added to private school fees I hope this extends to Uni fees in the future. Policies should be consistent.

It would be better for a digital sales tax across UK territory to be implemented, which would bring in a fortune from tax dodging companies and pump this income into the state education budget.

My neighbour is a police officer and his wife a nurse. Their only child was bullied terribly in state and they sacrificed everything to pay for private school. He told me in the pub the VAT addition would finish it for them. Perhaps those who are gleeful at the thought of this policy should consider families like this.

@DayDreamer7979

Can you share the source of your figures for MoD CEA funding please?

I’d also be interested to know why you think that the majority of the 51,700 or so full boarders outwith London are from military families? (Based on 66,000 boarding pupils in ISC schools, 2% of these are in London, and 80% are full boarders).

peanutbuttertoasty · 24/05/2024 22:34

YANBU an 8 year old could fugure the natural consequences of this out (if they had a decent education, which many more won’t as a result of this idiotic policy)

Stopsnowing · 24/05/2024 22:35

Whatever the rights or wrongs of the plan, imposing it immediately without a phasing in period is unfair on families and pupils. They are not handbags that you can just not buy. Moving kids is rarely an option - often local schools are oversubscribed. I would rather see plans to make private schools do (even more) for state schools eg share resources.

izimbra · 24/05/2024 22:37

CranfordScones · 24/05/2024 22:19

Here's a radical idea for you. Why don't we subsidise private schools? Say, a few grand for every British pupil they take?

Actually, not that radical - it's what they do in Denmark. They also have subsidies in Ireland, Switzerland, Spain, Belgium and Sweden.

It would be an opportunity to widen access to private schools. But Labour just believe in the politics of envy. The only outcome of their policy would be our private schools taking even more pupils from China.

Your ideal is a completely two tier school system?

You want more selection in British schools? More polarisation? Poorer, disruptive and lower ability children in state schools, with public money going to private schools who are able to select?

Or are you arguing for a system like Finland, where privately run schools (there are a few) can get state funding for pupils but aren't allowed to select?

izimbra · 24/05/2024 22:42

Stopsnowing · 24/05/2024 22:35

Whatever the rights or wrongs of the plan, imposing it immediately without a phasing in period is unfair on families and pupils. They are not handbags that you can just not buy. Moving kids is rarely an option - often local schools are oversubscribed. I would rather see plans to make private schools do (even more) for state schools eg share resources.

You're assuming that it's impossible for private schools to reduce school fees by cutting costs in order to make themselves affordable to parents who might struggle to pay current fees + 20% VAT.

It's not impossible.

They have twice as many teachers per child as state schools.

They just need to do what state schools have always done to reduce costs: increase class sizes and ditch extra curricula activities/sell off playing fields/get rid of support staff/allow their buildings to fall into disrepair.

OvalLemon · 24/05/2024 22:42

LyndaLaHughes · 24/05/2024 20:03

Is this for real? In what planet does this mean that every single privately educated child will leave and go to state school? What a ridiculous suggestion. Plus for all the people moaning about this- the actual number who will actually have to pull their children out will be a minute proportion. When people are using food banks and struggling to heat their homes, someone who has a spare £10k a year to spend on school fees is certainly not a priority. Yes they all peddle the "we are not rich" argument and we scrimp and save. Many are scrimping and saving and can't feed their families. A proportion that has risen exponentially thanks to the incompetence of this government and their devotion to keeping the rich rich. I say that as someone who could afford private school for my children so it's not the politics of envy, but I am not so bloody selfish as to only look at my own situation and not care about the plight of so many in hardship. I'll happily pay more tax if it means the NHS stops collapsing or schools are properly funded. Change can't come soon enough.

Clearly out of touch if you think private school only costs £10K a year…

OvalLemon · 24/05/2024 22:43

izimbra · 24/05/2024 22:42

You're assuming that it's impossible for private schools to reduce school fees by cutting costs in order to make themselves affordable to parents who might struggle to pay current fees + 20% VAT.

It's not impossible.

They have twice as many teachers per child as state schools.

They just need to do what state schools have always done to reduce costs: increase class sizes and ditch extra curricula activities/sell off playing fields/get rid of support staff/allow their buildings to fall into disrepair.

Then what would be the point/appeal of private school? No one would pay to send their kid there then.

lb191302 · 24/05/2024 22:44

1dayatatime · 24/05/2024 19:39

Because a large number of voters will support it even if it actually costs more to the taxpayers than it raises.

It's the politics of envy.

What I don't understand is why stop at private education- surely it would be more "fair" to tax private health care that allows people to jump NHS queues whilst others have to suffer in pain?

They literally do tax private health care. You don't really think bupa have charitable status do you?

Hdkatznahtw125sgh · 24/05/2024 22:45

Personally I’d abolish private schools and grammar schools.

My parents could’ve easily afforded for me to go to private school. I went to state schools rated satisfactory by ofsted. I got A’s.

My very average state school had a year of 160, sets based on ability. Plenty of people got As and have gone to university.

My very average state school also managed to support students who didn’t have family support etc to get C’s, those kids C’s was more of an achievement than my A’s. They also supported many people to go onto vocational training.

My very average state school has produced doctors, dentists, social workers, nurses, midwives, soldiers, hairdressers, personal trainers, teachers, entrepreneurs, electricians and many many more. I also went to school with people from all over the world. This is richer than any private school mixing with people who also had wealthy / aspirational parents could provide.

Tax them to the hilt I say