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Labour confused and arguing among themselves over VAT on school fees

1000 replies

Another76543 · 10/06/2024 09:48

This policy is getting more ridiculous by the day.

We have the shadow Attorney General who doesn’t understand the basic concept that the VAT position and charitable status are entirely separate issues. She also doesn’t understand that it’s parents and not schools who will pay the charge.

“the question is, is it appropriate in these circumstances for schools, such as in Eton or Winchester or whatever, to be seen as a charity and that, therefore, they should not be paying VAT on the huge fees”

This statement is factually incorrect on two things.

She also seems to think that any money raised will be spent on breakfast for children. The potential money has already been allocated to new teachers. They seem to think they can spend the same money twice.

https://www.independent.co.uk/news/uk/emily-thornberry-labour-institute-for-fiscal-studies-education-secretary-winchester-b2559439.html

The Party are also now fighting among themselves over this proposal.

https://www.independent.co.uk/news/uk/emily-thornberry-bridget-phillipson-labour-david-lynch-london-b2559684.html#

“sign of divisions within Sir Keir Starmer’s party over the policy”

VAT on private schools may lead to ‘larger classes’ in state sector – Thornberry

Education Secretary Gillian Keegan said pupils would be impacted by ‘Labour’s politics of envy’.

https://www.independent.co.uk/news/uk/emily-thornberry-labour-institute-for-fiscal-studies-education-secretary-winchester-b2559439.html

OP posts:
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Aladdinzane · 10/06/2024 15:04

@Palomabalom

They really aren't.

Go ask the Tories about their national service plans?

Another76543 · 10/06/2024 15:06

Assistanceneeded · 10/06/2024 15:03

It’s now on the bbc that the vat is going to fund this childcare?

Their manifesto must have made a change. It’ll be interesting how the extra teachers and mental health support are going to be funded, as the VAT was funding them originally. The projected tax take is only around 1% of the state education budget to start with. They seem to be making it stretch very far.

OP posts:
Another76543 · 10/06/2024 15:07

Aladdinzane · 10/06/2024 15:04

@Palomabalom

They really aren't.

Go ask the Tories about their national service plans?

As many people have pointed out, there are more than two parties standing for election.

OP posts:
Aladdinzane · 10/06/2024 15:11

"The projected tax take is only around 1% of the state education budget to start with. "

State education budget is different to schools spending. I believe the projected tax take is around 2.5% of the total budget but can obviously be focused into some areas.

Cantgetyou · 10/06/2024 15:17

Defenestre · 10/06/2024 13:44

An emotional thread on an emotive subject. But unless I've missed something, noone seems to have addressed the actual point -

Private schools shouldn't have charitable status because they're not charities. With the exception of a few minor fringe activities here and there, they don't actually function as charities.

Stepping back from whether the policy happens to work for your personal circumstances or ideology, how is this controversial?

Education is a charitable purpose in its own right; a well-educated population benefits society as a whole. Surely this is obvious?

But FYI, Labour is not planning to remove the charitable status from private schools.

Wetellyourstory · 10/06/2024 15:20

Whenever private schools are discussed, it is implied that everyone is rich if you send your child to one. The examples politicians use always seems to include Eton.

Nowhere have I read any comment about private schools that are specialised and you earn a place solely on non-academic ability. Music schools/dance schools/bursaries for high achievement in sports. These are normally paid for via scholarships, parents doing fund-raising, local businesses sponsoring a gifted child, sport associations providing help towards funding. The additional 20% could make these sort of educational establishments even more elite and limit opportunities for those talented children from less well-off backgrounds. Do we want talented musicians, dancers, sportsmen/women winning Olympic medals? If yes, then don’t penalise those parents supporting their children to pursue those dreams. Also, what about private universities that again, produce talented individuals in the arts. As that’s education, are they included too?

I’m not a Tory voter and never sent my children to private school. I’m against the policy on principle as, to me, it’s an ill-thought out policy based on envy. The hatred and nastiness this policy is generating is creating more of a class divide to gain votes, and I therefore don’t trust them as a party.

Currently researching what independent candidates we have.

VanillaSox · 10/06/2024 15:23

I own a rental property close to an outstanding state school in an area where a lot of children go private.
I have decided to sell up before the next government decide to punish landlords -because of course all landlords are evil bastards. What I wasn’t expecting isthat we are getting a lot more interest in the property than expected and the agent thinks because the school is now more of a draw even than .
So there will be one fewer rental property available, a well-off family will save school fees and get their DC into the best primary in the area and probably sell it on to another similar family as soon as their eldest has a place.
Well done, Labour.

crumblingschools · 10/06/2024 15:27

@Aladdinzane you have obviously never lived rurally. Many towns only have one secondary school

Gondoliere · 10/06/2024 15:28

Aladdinzane · 10/06/2024 14:27

"Ah the problem is your view is London centric and you haven't got any experience outside of London. That makes sense."

:) nice try, but another fail, I started my career in the North of England and moved to London later. Most of my family are still outside of London.

However, the person's comment about London was also rubbish.

The Private school parents are doing an exceptionally bad job in these debates.

I do not care if you think is horseshit. I really hope my kids are never educated by someone like you. However, I doubt you are even a teacher. As for the in and outs of a parent navigating the schools in London you are clueless. You may be a northerner with a chip on your shoulder. That is more like it.

Aladdinzane · 10/06/2024 15:33

@Gondoliere

It is horseshit, and the kind of thing parents say to themselves because they are looking to justify spending all that money on private schooling, even making excuses to themselves for buying their kids privilege.

The results from London schools show that London kids out perform students from almost any other area, even the PP kids ( of which there are more than average in every London borough) out perform those outside of the capital.

London schools really are very good.

No chip on my shoulder at all.

Aladdinzane · 10/06/2024 15:34

@crumblingschools "you have sobviously never lived rurally. Many towns only have one secondary school"

I don't know of MANY towns with only one secondary school at all, I'd also question how many schools could support one secondary state and one secondary private.

Gondoliere · 10/06/2024 15:38

@Aladdinzane The results are one reason. Parents send kids to private for several reasons. No one is taking away your great performing state school from you or whoever wants to use them. I want a choice and this is the beginning towards the erosion of private schools. This is to pander and appease people like you. A divisive hateful policy with not clear benefit than to win voters like you. If you really care about kids you should be ashamed to support this policy. More likely is another agenda.

EdithAndBertie · 10/06/2024 15:40

Teentaxidriver · 10/06/2024 10:12

Sorry that should have read: “the economist” Rachael Reeves. A few years working in the treasury as a CS does not make you an economist.

Genuinely intrigued what does make you an economist if it's not reading Economics at Oxford, an MSc in Economics from the London School of Economics, working for the Bank of England and then the Treasury.

is there more to it than that - because so far it's reading a bit like the Blackadder 'more cunning than a fox... sketch...'

Palomabalom · 10/06/2024 15:46

Another76543 · 10/06/2024 15:07

As many people have pointed out, there are more than two parties standing for election.

Absolutely- I didn’t say Tory did I? I think you’re developing tunnel vision if you think it’s a choice of exchanging one bunch of crap for another bunch of shite. There’s more than two horses in the race.

Oakandashsplash · 10/06/2024 15:48

Palomabalom · 10/06/2024 14:55

Couldn’t agree more. Labour are losing tons of votes now in this area because of their inability to understand and project a unified front. I’m voting Lib Dem now as are many others in my peer group.

So you are happy with charitable status ending as per Lib Dem policy? So schools pay business tax.

twistyizzy · 10/06/2024 15:50

Aladdinzane · 10/06/2024 14:44

"what about if there is only one state school in your town and it is inadequate, but there is a private school in the same town. How does your argument work there?"

and how many people live in a town where there is one state school?

We can't make policy based on a tiny level of exceptions.

But even then, your private school is going to be cheaper than those in cities :) good for you eh?

It is cheaper than moving house!

Another76543 · 10/06/2024 15:53

Palomabalom · 10/06/2024 15:46

Absolutely- I didn’t say Tory did I? I think you’re developing tunnel vision if you think it’s a choice of exchanging one bunch of crap for another bunch of shite. There’s more than two horses in the race.

No, I know you didn’t. My comment was in response to another poster who quoted you. That poster said “Go ask the Tories about their national service plans?”, suggesting that the only other voting option was Tory.

OP posts:
Aladdinzane · 10/06/2024 15:56

@twistyizzy

Really? If you add up 90k for one child just for year 8-13 for high school?

I really think some private school parents will say anything to justify it to themselves.

Clavinova · 10/06/2024 15:57

EdithAndBertie · 10/06/2024 15:40

Genuinely intrigued what does make you an economist if it's not reading Economics at Oxford, an MSc in Economics from the London School of Economics, working for the Bank of England and then the Treasury.

is there more to it than that - because so far it's reading a bit like the Blackadder 'more cunning than a fox... sketch...'

I don't think she worked for the Treasury. She worked for the Bank of England in her early/mid 20s, then for HBOS - where her team messed up according to the Guardian's timeline up thread. She became an MP at the age of 31.

Palomabalom · 10/06/2024 15:58

Another76543 · 10/06/2024 15:53

No, I know you didn’t. My comment was in response to another poster who quoted you. That poster said “Go ask the Tories about their national service plans?”, suggesting that the only other voting option was Tory.

Sorry OP that was who I was referring to but forgot to tag! Apologies

twistyizzy · 10/06/2024 15:58

Aladdinzane · 10/06/2024 15:56

@twistyizzy

Really? If you add up 90k for one child just for year 8-13 for high school?

I really think some private school parents will say anything to justify it to themselves.

Years 7-11 as we were only going for secondary years.
£150K to move to a house in good catchment. 75K fees (without VAT).

You really can't see past your own preconceptions can you?

Oakandashsplash · 10/06/2024 16:00

twistyizzy · 10/06/2024 15:58

Years 7-11 as we were only going for secondary years.
£150K to move to a house in good catchment. 75K fees (without VAT).

You really can't see past your own preconceptions can you?

But you keep the house and pass on the wealth to your children when they need a house deposit one day.

twistyizzy · 10/06/2024 16:02

Oakandashsplash · 10/06/2024 16:00

But you keep the house and pass on the wealth to your children when they need a house deposit one day.

Not if you factor in potential care home fees!
I don't think anyone should bank on having a home to pass on any more.
Plus we are hopefully giving her the skills to afford her own home.

LeakyRad · 10/06/2024 16:03

I am slightly curious, given the apparent loathing towards children who have attended private school, how they'd be received by some PPs (as teachers/parents) if these children moved into their state school. With opened-arm welcome and not a hint of righteous prejudice, I'm sure.

Mepop · 10/06/2024 16:03

TakeAnOldBagShopping · 10/06/2024 14:28

I heard that too. Going to find 3,000 new nurseries for 100,000 kids.

I think they are banking on this money. So, I’d pay £3,600 extra in VAT if I stayed, but they’ll be paying £7,200 a year if I leave to go state. So they need 2 private kids to stay before they break even if my DC moves. That’s before they make any money.

Surely someone is doing the maths here 🤷‍♀️

But what would you do with your £15000 a year fees you save if you send your child to a state school? Would you spend it? Then you would be paying VAT on those purchases and they would get more money?

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