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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

I genuinely want pro-VAT people to answer these two questions

1000 replies

Seenandheard · 23/07/2024 17:46

(1) Do you realise that a private school child saves the tax payer/government thousands of pounds per year by not taking up a space in state school? Not to mention the space in the classroom/competition for places? (Do you care about this point or gloss over it in your minds?!)

(2) Do ypu realise that taxing education is illegal in the EU?

Yes or no to both points, please.

I do not want reams of uninformed angry opinions. I don't want this to turn into a multi page thread/bun fight. I just want to understand whether people realise these two points, really, truly understand them. Because it seems to me that there is a mentality of "they're getting a tax break" (WRONG) or "they're taking something away from my child" (WRONG) or "they can afford it so they can spread their wealth a bit" (I'm not going into the fact that my family spend more on taxes than Nordic countries, who have a far, far higher standard of living. We give so much, get almost nothing in return- but apparently we need to give more. More. More.)

I think my deep rooted anger here is to do with people's attitudes and uninformed opinions more than the policy itself. I need to know if people are aware of the facts.

OP posts:
Thread gallery
8
RilkeanHeart · 25/07/2024 00:39

No, you’re not ‘saving the state money’. You’re entrenching privilege.
No, it’s not a tax on education. It’s a tax on private business. You could have that education for free thanks to a thing called society. If it costs us more to educate more children in the state system, that’s a price worth paying for a more equitable society. Investment in the NHS and more spending to tackle poverty ditto.
This is one of the most progressive things our new government has proposed. Bring it on. Next step abolishing private schools altogether.

PollyG23 · 25/07/2024 00:41

Newrumpus · 23/07/2024 18:36

tax the only people who are 100% guaranteed not to benefit from the tax (ie those with kids at private school).

@Tgjjl - surely everyone benefits from state education. That’s why it is provided by the state. It isn’t just the parents of pupils who benefit from a literate, well educated, inventive, creative population. Education benefits the whole of society.

I agree with this but draw the different conclusion that improvements in state education should be paid for by an increase of 1% across the board on income tax not just asking the people who won’t be using it to pay 20% extra on their children’s fees. Everyone benefits from a well educated society so this cost should be shared by all. It would also raise a lot more money.

Also disagree with people saying that private schools are businesses. No entity (be it business, charity etc) can continue to exist if making a loss but it doesn’t follow that because private schools don’t operate at a loss they are businesses. They do educate children and are therefore educational institutions- that is their primary mission.

Jumpingthruhoops · 25/07/2024 00:42

Sunshineandpool · 25/07/2024 00:26

If you don't agree with private schools not having to pay VAT it means your life is shit?? I suppose it depends what you mean by a 'shit life' but presumably one that doesn't revolve around money?

So, if that's not the case, why the hostility towards fee-paying parents?
People literally taking delight in the fact that some of those parents will no longer be able to afford private education?
If it's not about money, then those people really should stop projecting whatever it IS that's making them feel inadequate onto others...

Another76543 · 25/07/2024 00:46

@SugarandSpiceandAllThingsNaice

It's really not that straightforward. There is food which is standard rated (cereal bars, crisps). A chocolate covered biscuit is standard rated, but a chocolate chip cookie is zero rated.

Jumpingthruhoops · 25/07/2024 00:55

Sunshineandpool · 25/07/2024 00:12

But don't forget they've not been able to afford private school fees and a holiday. So really, they're pretty much on the breadline!

Well, no, not on the breadline. That's frankly ridiculous.
Sorry, I always forget about the amount of pedants on this forum.
Financial hardship = a change in one's financial circumstances (in this case due to added VAT!) that suddenly makes certain outgoings (private school) unaffordable.
If that's not a financial hardship, what else would you call it?

Don't worry, though, I've got the message loud and clear from this thread: 'Dare to do well for yourself and you'll be sneered at!'
Yup, makes total sense...

SugarandSpiceandAllThingsNaice · 25/07/2024 00:55

Jumpingthruhoops · 25/07/2024 00:42

So, if that's not the case, why the hostility towards fee-paying parents?
People literally taking delight in the fact that some of those parents will no longer be able to afford private education?
If it's not about money, then those people really should stop projecting whatever it IS that's making them feel inadequate onto others...

No one is “literally taking delight” by the fact that some parents can only afford private schools if the tax free gravy train stops.

I am delighted that this means education services will be taxed more fairly than they currently are.

I, and others, think the whinging of those who will be priced out comes from a sense of overblown entitlement. No one is entitled to not pay tax, and especially not someone that right now has disposible income of several thousand £ per month. No one is entitled to private school for their DC.

The poor me, you must be jealous of me to agree with fairer taxes is irritating to say the least.

It’s not like the Tories ever did any tax changes that were fair. The NIC cut plus frozen tax thresholds has actually been a net tax increase for low earners with the middle class benefitting from a net tax cut. And what was said then? Get a better job, make better life choices…and now the middle earners want sympathy now they are being asked to pay their fair share? Hmpf.

SugarandSpiceandAllThingsNaice · 25/07/2024 00:57

Jumpingthruhoops · 25/07/2024 00:55

Well, no, not on the breadline. That's frankly ridiculous.
Sorry, I always forget about the amount of pedants on this forum.
Financial hardship = a change in one's financial circumstances (in this case due to added VAT!) that suddenly makes certain outgoings (private school) unaffordable.
If that's not a financial hardship, what else would you call it?

Don't worry, though, I've got the message loud and clear from this thread: 'Dare to do well for yourself and you'll be sneered at!'
Yup, makes total sense...

I’d call it a financial set back. Hardship implies deprivation.

Sunshineandpool · 25/07/2024 01:01

Jumpingthruhoops · 25/07/2024 00:31

Well, no not really.

Those parents made the 'choice' to send their kids to private school, presumably already having worked out how they could fund that choice.
They didn't 'choose' to be slapped with a bill for 20% more.

What would you call the hostility towards fee paying parents if it isn't jealousy? I'll wait...

It's not liking wealthy people winging about money which has already been said. You had no need to 'wait' in the first place!!

Jumpingthruhoops · 25/07/2024 01:02

Saschka · 25/07/2024 00:35

Irritation at yet another thread about it?

I have no issue with private school parents in general, my son plays tennis and rugby with children from various south London preps and I get on fine with the parents. But they don’t spend all morning banging on about how tight their diamond slippers are, due to their own financial decisions.

As I’m sure you’re aware, private school fees have gone up by far more than 20% over the past 5 years. If that sort of rise is unaffordable for you, you weren’t going to manage to put your kids through to 6th form anyway.

I'm referring to the VAT, which is the point of this thread.

Again, I don't have kids in private school but I have friends (who are by no means rich) who do, and I sympathise with their situation.

Sunshineandpool · 25/07/2024 01:06

Jumpingthruhoops · 25/07/2024 00:55

Well, no, not on the breadline. That's frankly ridiculous.
Sorry, I always forget about the amount of pedants on this forum.
Financial hardship = a change in one's financial circumstances (in this case due to added VAT!) that suddenly makes certain outgoings (private school) unaffordable.
If that's not a financial hardship, what else would you call it?

Don't worry, though, I've got the message loud and clear from this thread: 'Dare to do well for yourself and you'll be sneered at!'
Yup, makes total sense...

It's called sarcasm!!

No, not being able to afford private school is really not financial hardship.

And nope, that's not the message. It is: winge about money when you are wealthy to less wealthy people and you'll get short shrift! Especially claiming 'financial hardship' because you can't afford private school when many people can't afford to put the heating on!

Jumpingthruhoops · 25/07/2024 01:06

Sunshineandpool · 25/07/2024 01:01

It's not liking wealthy people winging about money which has already been said. You had no need to 'wait' in the first place!!

But it's not 'wealthy people winging(??) about money'. And if you think it is, you really haven't been paying attention.

The fee-paying parents I know aren't wealthy; they're on modest incomes. These are the ones who will be hit, not 'rich' people. I think they're entitled to a little moan, don't you?

1dayatatime · 25/07/2024 01:07

@RilkeanHeart

"If it costs us more to educate more children in the state system, that’s a price worth paying for a more equitable society. "

Socialism used to be about trying to create a more equitable society by helping up the less well off. We can see from this comment that socialism now tries to create a more equitable society by about bringing the better off down in a race to the bottom.

And that is exactly why society and the economy in the UK is on a steady decline.

Saschka · 25/07/2024 01:10

Don't worry, though, I've got the message loud and clear from this thread: 'Dare to do well for yourself and you'll be sneered at!'

If you were doing that well for yourself, you’d be able to absorb the fee rise. And most parents I know will. It’s not our fault you were so keen to keep up with the Joneses that you signed up for something out of your price range and are now having to cut back spending elsewhere to afford it.

If you’d been honest with yourself about affordability at the time, you wouldn’t be in this mess. Wasn’t the average fee rise 10% last year? And 6% the year before that? This is unaffordable for you because you don’t earn enough, not because Keir Starmer is bringing in VAT.

Sunshineandpool · 25/07/2024 01:12

Jumpingthruhoops · 25/07/2024 01:06

But it's not 'wealthy people winging(??) about money'. And if you think it is, you really haven't been paying attention.

The fee-paying parents I know aren't wealthy; they're on modest incomes. These are the ones who will be hit, not 'rich' people. I think they're entitled to a little moan, don't you?

Personally, I've not come across these people on modest incomes that can afford private schools.

And yes, if they want a moan, fine - they can moan to their friends and fellow modest income but can afford private school peers.

But to whine to others who can't even switch their heating on, or are skipping meals so they can feed their DC? I'm sorry, that's completely tone deaf and obnoxious behaviour.

RilkeanHeart · 25/07/2024 01:16

1dayatatime
I agree that, as you point out, ‘society and the economy in the UK are on a steady decline’. But that’s certainly not down to socialism. Unless
you think the spirit of Clement Attlee was guiding the Tories in their selfish hollowing out of our public services and public realm over the last 14 years.
And yes, I do believe the better-off need to
pay more to help us achieve a more equitable society. Not sure how you think the most vulnerable can possibly be helped otherwise. In a decent society, those with the broadest shoulders should pay more.

lemarr · 25/07/2024 01:19

Pogpog21 · 23/07/2024 18:57

I’m not answering your questions but want to provide solidarity. I’m also angry. But I just keep trying to tell myself that 1. It’s out of our control now so just accept it and get on with it and 2. Ignore all these smug people who are so happy about this turn of events. They are so gloating because of their own issues with the world, it’s best to just smile and move on. They can take away our private schools, they can take away our grammar schools but they can’t take away our innate abilities or desire to ensure our children are pushed and thrive. And ultimately most of us can probably move to other countries if we really need to.

Oh that’s a good point, I never realised parents who can’t afford private education didn’t have “innate abilities” and the desire for their children to be “pushed and thrive.” What a wise musing from you, I see this must be the high calibre of human that so passionately supports private education.

lemarr · 25/07/2024 01:21

I was privately educated due to poor state school choices where I grew up. That in itself is an issue. There should be no poor schools. Abolish private education and focus on excellent education for all. Away with this hideous self-righteous, classist attitude — it is utterly revolting.

Sunshineandpool · 25/07/2024 01:52

lemarr · 25/07/2024 01:19

Oh that’s a good point, I never realised parents who can’t afford private education didn’t have “innate abilities” and the desire for their children to be “pushed and thrive.” What a wise musing from you, I see this must be the high calibre of human that so passionately supports private education.

Absolutely.

Decompressing2 · 25/07/2024 02:09

Saschka · 25/07/2024 00:03

But if they pull their children out, they’ll have an extra £3k per child per month to play with. The fact they have spaffed money they apparently can’t afford up a wall doesn’t mean they are poor.

Would you say that somebody who just bought a Porsche was in financial hardship because it gets through a lot of petrol and costs a fortune to insure?

I love all these comments where people compare possessions with a child’s education - just highlights how daft their argument really is and how this just boils down to jealousy.

Marchitectmummy · 25/07/2024 02:48

1dayatatime · 25/07/2024 00:13

@SugarandSpiceandAllThingsNaice

"A regressive tax structure is what we have now, where only the consumers from lower income brackets pay tax on economy private education, but the consumers from the upper income brackets pay no tax on first class private education. "

Actually the majority of one to one private tutoring is cash in hand so no VAT and no income tax. Even the larger tutoring schools are usually below the £85k threshold.

Which large tutoring schools are below VAT level? That's around 300 / 350 income per day nothing large would be below that, its a small number intentionally to maximise the number of people / businesses that fall into it.

anothervoice · 25/07/2024 03:32

I think the impact of this policy is way overblown.

School fees go up every year anyway. The impact of this tax, in most cases, will be comparable to the difference between taking a subject that has lots of trips as opposed to one that doesn’t - eg. my DC has opted for Geography A-level and the trip (which is more-or-less compulsory for that subject) is about £1,000, paid in instalments. If she was doing say, RS, there would be no such trip.

All 4 of ours went through independent schools in London - now only one left going into 6th firm, This school has said it will do all it can to find ways to not pass the VAT on to parents.

The ‘big name’ day schools such as Westminster, St Paul’s, CLGS, Godolphin and Latymer will sail on, unaffected by this change in VAT status.

Boarding schools I have no experience of, but I imagine they will be the same.

People will just pay the fees through a business or from offshore and avoid tax that way. Or they’ve paid fees ahead, or they don’t really care.

Many (most) are international families or families with the means to offset this kind of thing elsewhere.

I think the tax will impact the smaller, non-selective private schools in ‘middle England’ (if I can call it that). But even then, schools are not going to sit back and lose all their customers. They will find ways to offset the additional costs if families are pulling out in droves.

In some cases, sadly, it will be bursary programmes that will be hit hardest.

For instance, at the school DD went to, the basic fees rose from about £7k per term to £9.5k per term in the time she was there. As I said, fees rise year-on-year anyway and parents are well used to this. However, a distinct ethos at this school was its bursary programme, with around 25% of pupils receiving bursaries (around half of those being full bursaries). And these bursaries did not just cover fees. They cover everything in the school - trips, music / other tuition, uniform, you name it. A section of the school fees people were paying funded the bursary scheme and it worked well. 1500 children sat 11 plus for 120 places going into Year 7. The school wanted the must able pupils, regardless of background or income. GCSE results were / are around 95% 9-7. The school was far more diverse than your average suburban comp / ethnically, culturally and socio-economically. The school won national awards for improving social mobility It remains to be seen what will happen as a result if the VAT changes - will plans to expand the bursary programme be stalled? Will fees rise a lot or will the increase be negligible? Will the school make savings elsewhere - eg. not run the Saturday programmes they run for underprivileged children in the local London borough? Probably the school will just carry in as it is.

CurlewKate · 25/07/2024 05:10

It would be so good to be able to have a discussion about this subject with no mention of jealousy or the politics of envy. They really are just ways of shutting down conversation and inhibiting any introspection. The issue of privilege, both bought and unbought, and rigidly entrenched class structures are such a barrier to any real change or even movement in society. And we do need to find a way to make things fairer and better. Because nothing's worked so far!

EasternStandard · 25/07/2024 06:17

Saschka · 25/07/2024 01:10

Don't worry, though, I've got the message loud and clear from this thread: 'Dare to do well for yourself and you'll be sneered at!'

If you were doing that well for yourself, you’d be able to absorb the fee rise. And most parents I know will. It’s not our fault you were so keen to keep up with the Joneses that you signed up for something out of your price range and are now having to cut back spending elsewhere to afford it.

If you’d been honest with yourself about affordability at the time, you wouldn’t be in this mess. Wasn’t the average fee rise 10% last year? And 6% the year before that? This is unaffordable for you because you don’t earn enough, not because Keir Starmer is bringing in VAT.

A hike of 20% in one year is obviously more than usual. If you had a hit of the same with a tax you’d probably feel it.

Someone else paying is of course desirable. Not that it will do much, maybe damage overall and just get paying going like this.

Standupcitizen · 25/07/2024 06:30

Jumpingthruhoops · 24/07/2024 23:51

Try again? 😏 Get over yourself!

I genuinely want to know why i should care, I'm still not seeing a reason and you haven't been able to provide one - you're the one who volunteered a nonsense answer of "because I'm nice". So i wanted you to have another go, because so far all this thread has done is made me even more sure that Labour are doing a good thing. I can only surmise you can't actually come up with a reason why working class people should care that rich people might have to pay a bit more tax on a luxury.

Also, it's 2024, aren't we past the whole idea that women have to be nice to everyone all the time?

thefireplace · 25/07/2024 06:36

EasternStandard · 25/07/2024 06:17

A hike of 20% in one year is obviously more than usual. If you had a hit of the same with a tax you’d probably feel it.

Someone else paying is of course desirable. Not that it will do much, maybe damage overall and just get paying going like this.

P/Schools will be able to claim back about 5% of the 20%, they can then cut their budgets/increase class sizes slightly.

R4 did a piece on this, 10% seemed more realistic and thats without any funding rising.

All of the above has happened in the state sector for many years now.

Assuming the amount raised is correct, this would be around 8 billion over the course of a 5 year parliament.

For context, £4bn is the amount needed to fix the dentist/nhs contract and provide us all with reasonably priced dentistry.

There are just too many things wrong with the country not to have VAT on what is essentially a luxury item, if you don't agree, where should this 8bn come from?

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