@allergictoironing
I STILL can't get why this is being called an "Education Tax"
It's quite simple. See the government information below which OP kindly linked Since 1 January 2025, all education services and vocational training provided by private schools in the UK for a charge have been subject to VAT at the standard rate of 20%.
https://www.gov.uk/guidance/vat-on-education-and-vocational-training-notice-70130
'Education' is a bit snappier than 'education services and vocational training'.
You're right that the government haven't restricted it to academic education though. They're also hitting those pesky private school kids with tax on anything they can think of eg music lessons. Only in private schools - the same external teacher charging the same amount to state parents is still tax--free.
You'd probably object even more to us calling it the 'hurt-the-posho-kids' tax though. And that wouldn't be quite accurate either, since not all private school kids being hit by this tax are poshos.
a policy which is likely to turn out very expensive to the taxpayer
A little confused by the logic here - how? Maybe the very low numbers of children added to the state schooling system, considering that approximately 6% of children are at private school and the loss of the VAT loophole is very unlikely to mean more than about 1 in 10 of these children transfer to state schools - the seriously rich will always be able to pay anyway. So still a decent additional income to the Public purse from the tax.
I don't think you realise quite how much private schools directly save the government. About £3.5billion per year in direct savings - even without including either direct employment or supporting businesses by buying other services. Education is really expensive - even when funded by the state out of our taxes. Very much not free.
The analysis says that if just 10% of private school kids switch to state, then the policy will raise £0. Any more than that, and the policy will cost the the state money. Every year.
2.6% have moved already since January within the school year, despite in-year moves being something parents usually try to avoid. Wonder how much it will have dropped by in 7 years time, when people aren't tied in?
Then there's the question of what do the parents do with the extra money they now have which they aren't spending on luxury education costs - well they tend to spend it on other things which is good for the economy and adds to tax take from other items.
The government made the rather cavalier assumption that parents would spend all the money they saved choosing state on other VAT-able goods anyway. So none of that extra cash would be spent on holidays abroad, no 2nd hand cars (better than they would have bought otherwise, but not new), no mums staying part-time, no paid extra-curricular activities for the kids (VAT-free if in state!), no pension payments, no mortgage over-payments. Hmm. I don't think the government thought about it very hard.