Labour’s private school tax raid ‘likely illegal’

[Zizzagaaaaaww]

Thought some may like to read this article

archive.ph/i1XD3

Sir Keir Starmer’s planned VAT raid on private schools is likely to breach human rights law, The Telegraph can reveal.
The Labour leader risks falling foul of European Court of Human Rights (ECHR) law <a class="break-all" href="https://archive.ph/o/i1XD3/www.telegraph.co.uk/money/tax/labour-private-school-tax-moronic-policy/" rel="nofollow" target="_blank">over his party’s flagship policy, one of Britain’s top constitutional and human rights lawyers has warned.
Lord Pannick, who has taken on some of the UK’s most high-profile court cases, backed legal advice warning that making private schools subject to VAT was likely to breach ECHR law.
He told The Telegraph: “It would be strongly arguable that for a new government to impose VAT on independent schools would breach the right to education.

“That is because all other educational services will remain exempt from VAT and the charging of VAT on independent schools alone is designed to impede private education, and will have that effect.”

The KC and crossbench peer said that the Labour policy risked breaching two articles in the ECHR which protect the right to education.
He referred to legal advice written in response to Labour policies as far back as the early 1980s, when the country’s most senior lawyers warned that plans to end tax exemptions for private schools or abolish the institutions altogether would likely breach international human rights law to which Britain is signed up.
Previous leaders of the party have floated the idea of taxing private schools as part of plans to integrate them into the state sector. Under former party leader Michael Foot, the Labour manifesto of 1983 pledged to “charge VAT on the fees paid to [private] schools”.
The policy to abolish the schools was eventually shot down by senior lawyers, who argued it could be at odds with the ECHR and spoke specifically about the risk of imposing VAT.
While Sir Keir has ruled out abolishing private schools, he plans to force the institutions to pay business rates and 20pc VAT on tuition fees.
In an unearthed legal opinion from 1987, seen by The Telegraph, the late Lord Lester and Lord Pannick, prominent human rights lawyers, concluded a government “could not lawfully prohibit fee-paying, independent education or remove the benefits of charitable status or impose VAT in respect of such education” while a member of the court.
A foreword to the opinion written in 1991 by Lord Scarman, who served as a Law Lord in the precursor to the Supreme Court, said it would “encourage a challenge which could be mounted by taking the argument to the [ECHR]… if ever a government should seek to abolish or discriminate against [private schools]”.
The opinion was jointly written by Lord Lester and Lord Pannick as advice for the Independent Schools Council (ISC) and later published in its journal. Lord Pannick confirmed his belief that the argument still stands today.

Goodness, do you really believe this nonsense? I couldn’t imagine anything less fortunate than being the person who penned this post. Hopefully your children learn better ways.

Like @BasketsandBunnies I know many public/private school families who are fine with the policy and certainly don’t characterise those who don’t send their children to fee paying schools like this.

I didn’t characterise ‘those who don’t send their children to fee paying schools’ like anything, but nice try. One of my children goes to a state school. I do however characterise those on boards like this who gleefully relish the anxiety the parents are going through as bitter, jealous and low achieving.
I very much doubt you know any ‘private school families’ who are fine with the policy at all, you and simply someone without skin in the game spending their Friday night enjoying reading parents worry whilst hoping to be able to throw in a bit of semi anonymous virtual signaling.

I am very against this policy, I have privately educated children, I worry about where the money that is so desperately needed for state schools is going to come from… because it’s not going to touch the sides from VAT. But I am also very against the way you speak on this issue. Your position is pretty disgraceful.

My child's school isn't closing. These posts are seriously unhinged.

Fair enough, I just find people who support a policy (any policy) designed to disrupt children’s lives like this beneath my contempt.
Its not just the school’s funding, they’ve just spent 10 billion pa on public sector raises and discovered a 20 billion ‘black hole’. Privately educated 6 year old scapegoats aside, it’s only income tax raises that will cover this which is not such an easy sell.

I’m really not sure what virtue anyone would be signalling by being for or against VAT on fee paying education. I’m not sure what is to be gained by lying about who you are who feels similarly to you.

Exactly, truely odd behaviour. But it’s how some lonely people get their validation these days.

They are not too bothered because they won't really notice the VAT. Their DC's schools won't be closing because they are all high ranking schools and if anyone did leave there will be plenty of others delighted to get a place and pay the fees with VAT. I am not lying and I am not lonely. Maybe you just don't know people like that.

That is a shame. My son is the same, but we had the option of a small independent without fancy facilities, etc, but with small class sizes that have made school doable. Sadly, if legal challenges fail and vat is added, we will no longer be able to afford it, but it was the perfect setup when we (both working class state educated people) found it.

@Clearly67 what an unpleasant poster you are

I agree with you Dothepropeller. The idea that all private school parents are seeking to get an advantage by getting the children into influential networks laughable. Many are just trying to get their children an education that they couldnot access in a state school because of their additional needs. State school SEN departments try their best but are overwhelmed. I can't see why we should punish families who pay out of their own pockets and reduce that burden on state schools.

A greater range of schools would make more sense. Not a policy designed to throw more SEN children back into a system that they couldn't cope with.

She might not be making it up. If she sends her DC to one of the large schools for the super rich, then it's quite likely that they won't really notice the VAT and the school isn't worried because these famous schools are oversubscribed. It would be nice if they could spare a thought for the smaller schools, those attended by the 'one income for fees, one income for mortgage and bills' model. But why would they? If by paying a small (to them) amount of tax they can keep their child in an exclusive school, get rid of some of the competition, and get the rest of the country off their back, it might seem like a good scheme to them?

@MyNameIsFine Agree, this tax is great for the super rich as it prices out an even larger percentage of the population and widens the gap between rich and poor

Yes I’ve seen a few posts along those lines. They were ok with the gap between sectors widening and some on the edges of affordability leaving. I recall for one it was to a parent of dc with SEN

All a bit much and unpleasant but there you go

Well, from their point of view, it's probably a relief that income tax isn't going up. If they only have one or two children, the school tax won't be that bad, as a proportion of their income.

Maybe and other taxes not income too

But I do find it odd how people react to the smaller schools or parents on the edge of affordability being affected

It’s as if fixing things rests on this small group of children and parents taking the hit.

I hope if it it does work out badly there’s scrutiny of the policy makers

You are correct that I am not making it up. My DC have finished school and are at university. I think you may be reading into this particular situation a bit too much. My friends are indeed affluent professionals (although not super rich by London standards) and can easily afford to pay VAT. If their school fees doubled they would still be keeping their children in their schools. Their children are all very bright so I don't think they would be too worried about competition for the places that they already have in any case. They are all Labour or Liberal voters and they are happy to pay a bit more in VAT. They would consider it bad form to complain about paying VAT when they consider themselves privileged to be able to afford it without sacrifice. They would also be fine with higher income taxes. It's not an 'I'm alright Jack attitude'. It's more 'We can afford to pay it and we don't have a problem with doing so.' No ulterior motive whatsoever. They are decent people and that's why they are my friends.

😂 well exactly

“My friends are indeed affluent professionals (although not super rich by London standards) and can easily afford to pay VAT. If their school fees doubled they would still be keeping their children in their schools. Their children are all very bright so I don't think they would be too worried about competition for the places that they already have in any case. They are all Labour or Liberal voters and they are happy to pay a bit more in VAT. They would consider it bad form to complain about paying VAT when they consider themselves privileged to be able to afford it without sacrifice. They would also be fine with higher income taxes. It's not an 'I'm alright Jack attitude'. It's more 'We can afford to pay it and we don't have a problem with doing so.' No ulterior motive whatsoever. They are decent people and that's why they are my friends.“

Interesting, because I also have a lot of friends in this demographic. However, our definitions of super rich/affluent must differ. Because my friends are typically earning 100-150k each and already paying 22k per child in school fees plus mortgage and most now regret not sending their DCs to outstanding state schools like we did. They regularly tell me this and ask me about it. And my friends certainly would not pay 44k per child in school fees! It’s not worth it with bright children as they would do fine in state. So they are upset about the VAT and regret choosing private schools but I don’t think anyone wants to unsettle any DC already at secondary school. However, some are making different choices for younger siblings now and will make different choices at Sixth Form now.

How much are they earning to want higher taxes, and ok with double school fees etc?

Yes I think perhaps our definitions are a bit different @Araminta1003. My friends would have incomes substantially more than that although we haven't discussed it. Several have three or four DC in London day schools. I meant not Oligarch wealthy but senior partner level professional salaries.

This is so sad.