VAT on school fees - High Court Challenge.

[EverythingAllatOnceAllTheTime]

Labour’s plan to impose VAT on private school fees in January faces a High Court legal challenge over claims it breaches human rights law.

Lawyers have written to HM Treasury arguing the policy discriminates against special needs children and has threatened court action if it is not dropped.

Showtime…

I believe that the richest 1% arent taxed enough despite being one of the richest 1%. Labours budget holds no fears for me. If I have to pay more tax so be it, for the greater good. I don’t pay tax which isn’t levied, however. But I do give charitably, particularly to my old uni (and NOT to any private schools before you make up that fictional charge).

Labour are not proposing adding VAT to those optional educational services. Only to the educational services paid for by people Labour have encouraged the population to dislike and blame all social ills on. Populism at its finest.

Populism works for governments, short term. And it's very satisfying to many people to have someone to blame. But populism generally works out pretty badly for everyone long term.

Another insult?
Are you like this in real life?

I hope so but unfortunately, as the case can’t be started until November, the government aren’t going to put the VAT on hold in time for January

It's a luxury item purchase - VAT is due on luxury items.

I can't see any reasonable grounds for this case being brought and I'm pretty sure it wont be successfull.

It seems the aim is to put the issue in the news and gain some kind of concession from the government - I think that even the people bringing the case don't expect it to succeed.

Comments like this only make Labours VAT on luxury education even more reasonable.

These threads clearly keep @EverythingAllatOnceAllTheTime entertained ..lots of angry responses .. a bit of a bun fight. Sadly also a bit of an echo chamber..
7% of parents privately educate their children - a small proportion are stretched to meet the fees. I think it makes uncomfortable reading to see parents suddenly supporting parents of SN children and grabbing onto their coat-tails in the hope they benefit from quashing the policy.

Plenty of people (including me) have outlined the many ways in which the direct harm to a small percentage of people cascades to harm the wider population.

If you use 'it hardly affects anyone' to excuse not even thinking about particular consequences, you won't have a clear picture of the overall impact.

@Delphigirl reminds me of a Dad I spoke to, who had gone to the prep school himself, who said "the class of people here really seems to have gone downhill in recent years [no doubt he was talking about me] - hopefully the VAT will help with that".

The solution is to have a specialist pathway for SEN children. Not a free for all for the majority.

@Janedoe82

"Had VAT been chargeable when my children were at private schools I would have found the money to keep them there- as will happen now.
If they had not yet started it would have boiled down to if I could afford it"

Exactly whilst there will be a number of parents with children currently at PS who simply can't afford an additional 20% - these are relatively few - say 5%.

But there are a lot more parents for whom the additional 20% will change their minds about starting private school in the first place.

As I said there are few switching to state for Year 11 and 13. But a significant reduction of 20 to 25% starting in Year7.

This reduction will then feed through across subsequent years, so by 2029 there will be 20to 25% less private school pupils than in 2024.

Out of interest would you still support VAT on private school fees even if it cost more to implement than it raised?

Why?

It’s good to see that you have softened your view on the litigation risk.

I don't think the aim from the SEN contingent is to quash the policy - think most don't have a view on that angle specifically, either way. It's to extend the exemption already extended to cover those with EHCPs, so it also covers kids with provable levels of SEN, but no EHCP.

You do that, and a lot of the SEN advocates would leave the field; it's not an issue, in general, that attracts their focus. SEN kids and their vulnerabilities is, and worrying about VAT on private school fees and whether that is or isn't fiscally prudent or fundamentally fair is not a hill most of us are interested in dying on.

I'm not too sure it's just Tory problem - my DC with SEN received zero support under Labour too. Our local grammar schools have been underfunded for ages, both under Tory and Labour, the buildings are now falling apart - leaking roofs not repaired, labs a disgrace to all governments etc. These are the best grammars in the country, I'm horrified to think what happens at other schools.

Yes- as I believe having parents who would have been otherwise in private schools back in the state system as a positive move.
Plus on principle private school fees shouldn’t be VAT exempt.

There are many negative consequences to the whole population from this policy, which Labour haven't bothered to think through. Not only the consequences related to children with SEN.

I agree with that. Again, DLA exemption (medium rate or higher). Pretty simple to implement as the records are already with government.

Lovely for Labour's social engineering ideology. Terrible for the economy.

Lovely for Labour's social engineering ideology. Terrible for the economy.

What are the negative consequences? More wealthy kids in the state system is a good thing.

26.8% of current PS kids possibly won't switch this year, but very likely to do this at next natural transition point. Added to this are those kids who would join PS without VAT but won't anymore. Added to this parents (like me) who without need to pay PS fees retire or reduce their numbers dramatically thus reducing overall tax take.

This policy may raise some amount, but not £1.3-1.5bn claimed by far. The amount raised won't even scratch the surface vs level of stress caused.

It's nothing but pure ideology. The same as pensioners now protecting pound from run by having WFA removed. It's embarrassing for Labour

I think they meant public schools as in Eton, Harrow etc

Closing the attainment gap and wealth divide will benefit the economy in the longer term.

Oh my sweet summer child