Doubts grow over Labour’s VAT plan for private schools

[Blanketyre]

Article in the Observer here:
https://www.theguardian.com/education/2024/oct/05/doubts-grow-over-labours-vat-plan-for-private-schools

I must say they've gone very quiet on it.

You obviously don’t see everything happening and why would you? I know parents leaving the country, most leaving PS to go to state. It might not dawn on you until the new school year but there you go.

the parents I know who do send their kids to private school are continuing to send their kids to private school. I don't know anyone who has left the country.

Though perhaps I only move in plebby circles.

not a complete exodus though?

I agree actually that income tax should be raised to improve education and SEN provision for all (and mental health services too). But I don't think many private school parents would agree with that either somehow.

I absolutely do agree with that and I would think a lot of other PS parents would too.

Noone said that there would be a complete exodus ie 100%. However current % is BEFORE it is applied and the fact that many parents haven't been able to secure a state place. The true % won't be known until Sept 25 however what also needs reflecting is the % who decided not to move into private at key years ie 7, 9 + 12.
If >10% leave then there will be £0 net income from VAT. We are already at 5% just from the threat of VAT

@Remaker better educated children benefit society regardless of how that education is paid for. The state will always end up prioritising efficiency, as in a good enough education for the largest proportion of children possible, over ensuring each child achieves their potential. Incentivising parents to make additional marginal investment in their children’s education is an efficient mechanism for increasing the proportion of children that achieve their potential and spend a lifetime contributing to society.

most marginal send children are underserved in the current system and will never get adequate support from the state. Our private school is full of them, and each dyslexic kid that gets targeted and timely support, manages to achieve despite their difficulties and is supported to find talents not typically fostered in state will ultimately be one additional worker in our future economy.

I agree and would be happy to pay eg 1p education tax. The issue is many state parents wouldn't. Would 93% of parents be prepared to pay more tax in order to improve the schools they use?

Well actually then I think you do get it - but its sad your daughter missed a full term in school before her school got it and supported her for an ECHP. Your daughter is OK because she had you looking after her and fighting her corner- not everyone is capable of that and not every child is capable of going back to school after a missed term. Our private school has taken on lots of kids who have missed school in the government system and need to repeat years.

Its very common for the parents of children with SEN to have SEN themselves and find life overwhelming - not everyone has it in them to fight for an EHCP.

@Whatafustercluck why on earth would PS parents object to a universal tax like income tax going toward SEN in State schools? I and others have said repeatedly that IF there was a cats chance in hell that this VAT policy would actually achieve any concrete, net improvements, even though it is pretty much beyond the edge of affordability for me, I would support it. I am one of those who would LOVE to have the fee money in my account every month but it was a choice between that or stopping work to home-school my two ND, EBSA suffering kids who had been failed by the state provision near me. If me struggling on for another 3-4 years meant kids a few years behind mine could go to a 1000+ free comp and get the support mine get at their small private, then I'd support it. But it won't. But I suspect that had Starmer said, we need 15billion to actually sort out the state sector and everyone's income tax is going up by X you can wonder what the election result would have been.

There's no real justification for it not to be funded this way. We can all go round in circles but I've not heard a convincing argument yet as to why it shouldn't be an income tax.

Which is what brings us back to the only logical explanation being that it is ideological.

The Treasury has confirmed it will go ahead with a controversial VAT tax raid on private schools in what is being seen as a victory for education secretary Bridget Phillipson

If you feel you move in plebby circles well that’s pleb life. I wouldn’t say you moved in those circles as you learn a lot about people here on this site like you are doing now, you are moving with everyone here.

i know the state sector and private. I have long time friends who are ex inmates, single mums and dads, well off, up to govt etc. Everyone is different. In terms of leaving the country a few years back it was first Oz then Switzerland and now the country of choice is Dubai / UAE due to tax and more opportunities in my experience

@Bellaboo568 yes, that and the way it has been done with no thought for either a gradual role out at point of entry or a gradual increase. Most PS actually don't have the margins not to pass this cost on in full. Prior fee increases are done in advance with the parents given plenty of notice. Our school requires a full term notice so the timing of the announcement and the implemenation in January would mean that if any of our parents do want to leave ASAP they will still have to pay for the January term, as they wouldn't have given notice by the start of July when we break up for summer. A more reasonable, measured approach and a very specific, transparent plan for the money would make the whole thing far less "suspicious" as a genuine economic strategy than they way it has been done.

There may be a delay but the policy is rightly going ahead next year as confirmed by the FT and telegraph

Now if they increase mortgage rates that affects everyone.

I would happily pay 1p on income tax, most people would be happy to do so!

So people have always moved countries for various reasons, and are not just suddenly all upping sticks and leaving right now because of VAT on private sch fees? OK, well I agree with that. It's not what you were implying.

People have always moved that is very true.
I just know 2 different parents who have moved to Dubai due to tax and international schooling. Both PS parents- one a state school teacher and the other a scientist

Let the games begin!!!!!!

they might move back after they have spent a bit of time living, working and educating their children in Dubai

Tbf I'd rather a shit state school than Dubai!

me too from what I've heard.

Brilliant

I would rather an international school based in Dubai with British teachers than deal with some state schools. A lot of state school are better than some private schools however a lot in London are simply not. The teachers there are exhausted and under resourced

Of course you can. Of course. No reason to doubt the sincerity of your valuable assertion.

In London? Yes. There is a very high staff turnover rate.