Private School VAT Backtrack?

[SofaThrow]

There seem to be rumours swirling that Starmer has decided not to bring in the VAT on private schools until possibly 2025/6. After being very clear last year that there would be no phase in and that they would bring it in immediately.
Nothing is as yet confirmed I don't think.

A third of a child per class, that's it. Wow, some make it sound like classes will be more overrun than they already are

The impact would be very different depending on the area. The percentage of kids in private schooling in some London boroughs is around 25 percent. A recent survey puts the percentage that would consider taking their kids out of private schooling at 40 pc. In that case, we are talking about a a shift of 10 pc from private to state in those areas. So state going from 75 pc to 85 pc.

There's a business opportunity for someone starting up reasonably priced private schools in those areas, methinks.

No one is going to do that! The prices aren’t magically set at a high price, that’s how much it costs to run. Most run at break even profit margins.

Interestingly the unions have now spoken out against the job losses associated with private school closures caused by the VAT! That’s an interesting angle……

Isn't it just?! I still cannot see it actually happening but time will tell...

The unions or the VAT?

I don’t see how a policy that will cost the nation more will gain. It’s ridiculous

The VAT - although it would be a big climb down I suppose. I think it will get long grassed and they will hope that people forget it was ever an idea.

Like the last time (and the time before)

It is absolutely beyond me how absolutely NO ONE is talking about means testing parents of state school children and having those who are able, give a small financial contribution to the school on a yearly or termly basis! Just like is done in other properly functioning countries where people don’t assume they deserve education for free! Why is it that those who are already paying for their children’s education have to pay up?! I have friends who earn the same as we do, send their children to state schools and blow an insane amount of money on holidays and booze… all well and good, but these people are more than able to contribute to improving their children’s schooling don’t you think?

Those expensive foreign holidays they are spending money on are free from UK VAT as well……

The vast majority of labour voters at private faith schools will be impacted.

Hopefully they're already paying more in tax.

Yes, but no different to the taxes that those sending their children to private schools most likely are!

An example. 2 families earn exactly the same, and pay the same amount of income tax, and the same amount of VAT on standard spending.

Family 1
Uses the private system at no cost to the taxpayer. They spend £20k per year on school fees. Net cost to taxpayer is currently zero.

Family 2
Uses the state system at a cost to the taxpayer of £8k per child. They spend their spare £20k not spent on school fees on luxuries. Let’s assume that every penny of that is subject to 20% VAT. In reality it won’t be as things like foreign holidays don’t attract UK VAT. Total VAT paid is £4K. Net cost to taxpayer is £4K (£4K VAT less £8k state school cost)

Where is the logic in making family 1 pay even more tax, when family 2 are already costing the taxpayer thousands of pounds a year?

Of course! And money going out of the country too if we really want to get specific about it 😅

and no, I am not saying that no one should spend money on whatever it is they would like to spend it on but clearly there are many, many families in the state sector who are happily keeping quiet while private school families are being forced to pay the bill to improve the education of other children…. While not once offering to pay in more (over and above the taxes that we ALL pay!) themselves to improve their own children’s education!!

I just can’t understand the logic of penalising someone choosing to pay to educate their child, thus saving the state money, but not expecting those splashing the cash on 5 star luxury holidays to pay a penny a more, when they are the ones using state education and funding. I absolutely agree that people should be free to spend their money as they wish, but this policy is illogical.

Correct! There is no logic, it is purely vindictive and a politics of envy!

They could just as easily means test state school families eg. Those earning over £100k etc are requested to make a donation of say £500 per year or however they work it out and avoid all the confusion and chaos that this anti private school “policy” will cause.

Means testing state education would raise a lot more money as well.

Absolutely!!

That was easy though. Just one relatively small scale scheme - put a stop to it. Very few affected. Have to say though, my DH went through a very posh school on an assisted place. MIL paid out about £100 each year for random stuff. She was a cleaner. His dad did a bunch of unskilled jobs. They were poor throughout and drove to the posh school in a battered old car. It was lifechanging - DH is a good example of social mobility. So I'm not really sure why Blair crapped on it. Anyway. His family were labour voters until that moment. Never again. Would prefer to vote for a goat than labour after that decision.

But VAT - more than half a million affected, will be serious battling about what attracts VAT (they surely won't be able to put VAT on school dinners, which in many schools are part of the fees, just as an example). I don't think 93% of the electorate will welcome it anyway. My DB has 2 kids in state schools, who will always be in state schools. He doesn't welcome the VAT at all, thinks it's really wrong and will vote against it. People don't just welcome changes because it doesn't affect them - they do have their own ideas of right and wrong.

To avoid the local, failing, enormous state school, parents of DS’ friends send them to out of catchment religious schools (with no discernible familial religious inclination) or to a Welsh medium school, where they openly pay lip service to the Welsh language. As it’s so far away, they are also taxi-ed there and back at the public purse.

Both are their choice and free and cause absolutely no raised eyebrows here.

im not not prepared to do either. so all dc are out of the state school system but my choices are no different from the other parents other than I pay and don’t cost the state for three children’s education.

You assume there are a lot of family 2 types. Many families don't have a 'spare £20,000' a year.

All these families you assume have £20,000 going spare to compare with the private school families who spend their £20,000 on private school fees. 🙄 lots of families can barely cover their bills ket alone have these sums of money going 'spare'.

One thing I've noticed about people who are annoyed they may have a rise in private school fees is that its a primary issue. They don't appear to care about other issues as much