Labour’s plans for VAT on Private Schools

[Busydadof2]

The Labour Party has proposed introduction of VAT on private schools.

In the scheme of things the money they will bring in from this is tiny compared with total expenditure on state schools, while it will drive more burden on the state system as some parents leave private schools. I think this is a populist ploy to get traditional Labour voters to vote for what is in any other sense a centrist party.

Have you considered signing this petition to make sure the policy gets scrutinised and the weight of public sentiment against it is known?

Change.org petition: Stop Labour from adding 20% VAT to private school fees and forcing kids to change schools

www.change.org/p/stop-labour-from-adding-20-vat-to-private-school-fees-and-forcing-kids-to-change-schools

Various perspectives from the signatories of this vote come to mind and resonate with our own situation, including this: “I work in a state school with over 30 in a class and oversubscribed. My 2 kids went or go to private schools and we have sacrificed loads to do this. We are NOT wealthy, many of the kids at the school I work at live in bigger houses and have much more disposable income than we do. We chose to send our kids to private school rather than live in a bigger house instead of our semi detached on a main road. We holiday in the UK every year and I work full time. I buy my clothes on the high street or in charity shops. Many parents at the school my kids attend are in exactly the same situation. I agree there are some very wealthy parents there too and the addition of VAT will not even make an impact on them, they will pay it without batting an eyelid. All this will do is push the kids like ours back into an already oversubscribed state system, increase class sizes even more and create a bigger divide as private education will become truly elitist.”

They are charities the status is not changing

snd @Moonpig82 sums it up.

I have put two children through private education. But I agree with Labours policy. Private schools are not charities. Not one child I met in my children’s school who were subsidised came from what anyone who actually works with disadvantaged families would see as disadvantaged.
Sending your child private is a luxury and done with the sole purpose of giving your child an advantage. There is nothing wrong with this as such- I have done it myself, but if you want it pay for it. If not use the state system! It’s as simple as that.

They are legally charities but not ethically so.

They are NOT ACTUALLY charities though and my point is that the rest of us should not be subsidising them whereas the poster I replied to was trying to argue there was no subsidy.

Can we agree that VAT should be paid on private school fees and those who cant afford it can choose state? Tick

Next, what is Labour's plan for improving state education? Because VAT on private schools will not fix state schools or even address any of the issues in any significant way. They will also not raise £1.6billion from it.

So where is the rest of the plan - we are really rooting for them but need to place our faith on a credible vision for state school improvement.

You’re not subsidising

They are decreasing burden on the state

You do what you like sweetie

Not taxing like everything else you pay for = a subsidy.

We’re opposites. I never sent any of mine private. Couldn’t afford to. But I have no problem with private schooling being VAT free, or otherwise treated preferentially.

The simple truth is that wealthier anti-private parents just buy education through the price of a house near a good state school plus tutors and other expensive add-ons.

I’d rather the advantage was visible and honest.

It’s an extra tax that only U.K. will add. It's not standard

Mostly because it’s all Labour have so you think they’re doing something. It won’t do much but damage the sector and shift some more competition and burden to the state sector

Yes, we are subsidising because your schools are getting a tax exemption they shouldn't be getting. How many times do I have to write it?

lol you can tattoo it on your forehead if you want

I still think you’re wrong. There is no exemption it’s the norm not to add the tax

Don't all businesses have to pay tax? Ah, wait, just caught up, so they call themselves charities which means they won't pay any rates either?

”my character” coming from the one who just typed a whole post blowing his own trumpet…

A different person from the same circumstances could do exactly what you did and not get anywhere, a lot of luck is involved too. A friend of mines dad came from nothing, worked his arse off and got rich, but ultimately the stars still aligned to get him where he was. Not that he didn’t work his arse off, but to pretend it’s ALL hard work is a bit naive.

A 10% tax increase could cripple many many people, stop them having the basic necessities.

You pay your employees fairly, congrats, would you like a medal for that?

If you think a high number of people who put their kids in private school are like yourself, you are very wrong. It’s mainly generational wealth. Do you think thats fair? Rich get richer poor get poorer?

I think it’s funny you are propping yourself up as some heroic rich person as if all rich people are super fair with their money. I’ve been an accountant for 10 years for high net worth individuals, trust me, they aren’t.

SouthCoastDad i think your money could be better employed helping children who actually need it. Not kids in private schools. And like I said, I have put two kids through it.

The canny private schools will start offering more busaries, plus opportunities for the local state schools to share facilities etc, etc. These will be the kind of workarounds and compromises private schools will have to come up with if they are to push back on the VAT on fees proposal.

I dont understand how that will help them?

@Workhardcryharder How droll.

My "trumpet blowing" post as you conveniently frame it, was made to respond to your assumption I was like your wealthy, privileged friend who grew up (by the sound of it) with all life's advantages.

I was not and wouldn't allow any allegation of such to remain unchallenged. Sadly to do so, you do need to provide context.

A 10% tax increase would cripple many, although in an earlier post I suggested the taxable free allowance should be substantially increased, which would benefit those people proportionately higher and despite the percentage increase leave them with more disposable income.

I wouldn't like a medal for paying colleagues at the top end of the table, but felt it necessary before you make your second assumption that I get wealthy at the expense of others. Assumptions seem to be your thing.

I know acutely that most at private schools are from inherited wealth (with the exception of boarders who mainly are CEA recipients) and didn't state they were self made. Another assumption.

I am aspirational, and therefore to answer: No, I would like to see the poor get richer. Personally I do not "respect" inherited or generational wealth. It's a different type of entitlement which is nauseating.

Finally, I haven't said "all rich people are fair with money..." again you have assumed that. I simply explained my position...in response to your first assumption I grew up in a £10million estate like your friend.

I hope your attention to detail is more focused when dealing with your clients' accounts!

A 10% tax increase! Lots of people would be homeless.

It’s funny how every wealthy mumsnet user was born poor and worked 8 days a week to get where they were now without a penny from their parents. Statistically unlikely.

Most people with money have had some help from parents. They just discount the help they have had.

Not if the taxable allowance threshold was raised from the £12.5k it has been stagnant at, to £20k.

When you consider what inflation has been the previous 12 months alone, it's almost criminal that the Government have left it unchanged for years.

That ability to take home an additional £7.5k before tax is applied will offset the 10% increase by lower earners.

Might you explain the the tax exemption they have with their charitable status that you are referring to as I think there is some confusion.

I own my own home and have some cash in the bank (not sure how much money counts for that, but some savings). I don't have a second home as I'm not sure why I would need that and couldn't afford it anyway. I still absolutely am worse off now after more than a decade of conservative governments. Brexit is a bloody disaster and has made most people in this country, whether aspirational or not, worse off than they were before. We have the conservatives to thank for that. They may talk the talk but don't kid yourself that they are interested in getting the average person richer - we have seen the record of who they help over the last few years. Spoiler, it wasn't people like me. Maybe it has been good for you though? Congratulations.

83% tax rate back in 70s was under labour. So we are supposed to think back to then and think bloody hell, don't let them back in again, but somehow forget the shit show the Tories have presided over much more recently?

Plenty of professions that require degrees though - so university is less of a luxury and more of a necessity if you wanted to be a Chartered Engineer for instance.