IT’S NOT A TAX BREAK! Education settings are exempt!

[LaceyLou82]

Fed up of Labour calling the VAT on fees a tax break! Ideologically this is so very unsound, we are talking about providing an education here.

Education is not taxed for a reason, in this country it should be a fundamental right.

As a nation vs the global competition we have this is totally a backwards step.

He could put 10p on income tax and raise billions!!! Foolish policy.

Such a misconception about Private School parents. This is an unfair policy.

Nailed it. ✅

Double tick. ✅ ✅

@ChocolateFinger222 thank you for answering my question. I don't know much about the topic but did wonder how much it would cost the military when they're already pretty tight on finances.

Honestly I'm not a great fan of boarding school. Everyone I've known who went seems to have not really enjoyed it that much for the most part. I certainly woudn't be able to send my DCs although I think it would be different for 6th form.

How many schools did you go to if you don't mind me asking? It must have felt very strange to keep moving like that.

Give it a rest.

We don't care.

you are assuming the private school teachers want to move to state schools....

I really don't get this - private school parents will literally save 10s of thousands of pounds moving their kids to state schools.... ..you on the other hand will be paying much more in tax if they do because the government provides something like £7k a year to teach each government school student.

its generally the same teacher moving back and forth in different times of their careers.

I am confident that a significant proportion of those teachers would not return to the state sector...

Its about half of the amount that you have made up.

are you? why?

terms and conditions are often better in state.

Lots teachers move between the two, and lots prefer state, overall.

Do you have any figures to support your opinion?

In the years that I have been teaching the teacher movement has always been towards private and rarely towards state.

But they do...otherwise it wouldn't be a vote winner. Labour would not be talking about this if people didn't care. People do care a lot, and the majority want vat adding to fees, so people who don't want that will speak up.

How many private school parents do you expect to move their children to state schools if/when VAT is applied?

No one knows. The IFS estimates 3-7%. Numbers have already fallen 3% before the policy is even in force, so that estimate is looking on the low side already. It only takes 10-15% to move to state to mean that the policy costs more than it raises.

It will cost more than it will gain.

Labour has lost a lot of voters. From working class people like me, who yes we’ve done well now but our hearts and minds have been Labour since day dot. My parents worked in manual labour jobs. But now we’ll never vote Labour. There is no party for people like us who have worked hard. there is almost no point working hard in this country.

First post captured my response. Yawn!!

Just stop going on about it - nothing anyone can do so no point creating thread after thread of the same old tripe.

"Numbers have already fallen 3% before the policy is even in force, so that estimate is looking on the low side already"

This is likely to be nothing to do with the policy but the impact of falling enrolment in primary schools overall, changes in circumstances due to COL crisis and others.

I suspect the IFS estimate may be accurate, especially toward the lower end.

The reason for leaving is irrelevant. It impacts their calculations of the amount the policy will raise, which is the point. They are figures the Labour Party are relying on for their sending plans.

7% of kids go to private school so you can assume that whilst not all, a large majority of the 93% of state school kid parents will show absolutely no sympathy on this forum. Most of them can't afford it and/or disagree with the concept of private education so have automatically assumed that VAT on fees is morally justified but at it's core, they are just happy that the wealthy are paying more tax somewhere which is of course the ideology behind the policy.

"The reason for leaving is irrelevant."

Of course they are relevant. If initial admissions in primary schools are lower, due to lower numbers over all in this age group, and greater access for parents to first choice schools, that makes a difference.

If people have chosen to opt out at the next exit point due to changing circumstances, which there have been a lot of over the last 3 years that is a different reason from VAT being put on.

Look at the increases to fees across the last decade and look at the overall numbers in private education, did they rise or fall?

What will happen is private school parents will go to their employer and say “I need a pay rise to cover the cost of my kids schooling” and most of them will get something, the rest will go to grandparents cap in hand or remortgage and they’ll keep them there.

@SoupChicken

"What will happen is private school parents will go to their employer and say “I need a pay rise to cover the cost of my kids schooling” and most of them will get something, the rest will go to grandparents cap in hand or remortgage and they’ll keep them there."

What will actually happen is , because the vast majority of privately educating households are in the top percentiles of household income, is that they will rearrange discretionary spending a little, and pay for it that way.

Why a new thread when there are already 200 billion on the same subject?

Yes absolutely this. On fees of £20k, (which is actually higher than most private school fees), the VAT would be £4k and in reality, it's going to be less than this as the school will be able to recover VAT. Even if it were £4k, that is an extra £333 a month which most families can comfortably absorb or cover through budgeting in other areas.

Yawn can we give this a rest now?