Any other Heads publicly worrying about VAT?

[JustanotherBerkshiremum]

DCs at an independent school. The Head is obsessed by the proposed VAT implementation. Since October he has raised this issue in all public correspondence, ie newsletters, the school magazine and the end of term letter.

Are any other Heads out there publicly worrying about the future to their parents or is it just ours? You don’t need to name the school.

I get that it’s an issue but the school can finally claim back VAT. And if they get decent tax advice then they can cushion it a bit more. And it will only happen after the next election if (because nothing set in stone) Labour get in which is two years away.

I’d rather the Head kept his thoughts to himself at the moment. Am I being too harsh?

How would you limit VAT to only more expensive schools? On what legal basis could you do so?

It would also not sell well to say it is a tax on hard working parents; private school is a luxury well beyond the reach of those on average incomes. I could see it as an easy quick win for a labour government. Other things like the economy or NHS don’t have simple solutions. Whilst people like to put all the blame on the Tories they will quickly find that it far from the case; global factors are having a far bigger impact.

Single sex private schools will also run into trouble with Labours support for self ID.

Any delays would come from private schools themselves pursuing it through courts.

Given that the peak years in terms of birth rate are now reaching university, state schools will soon have falling rolls. I think but haven't checked the data that this may already be occurring in primary schools.

I am sure I remember a while back something was proposed to try and kill off private schools. It might have been Corbyn leading labour in a General Election. The ‘big names’ like Eton were looking at locations in Europe to transfer to.

Can anyone explain why would not have to pay VAT on an expense luxury item that only a small proportion of the population can afford?

Because it is education? What about specialist schools? A lot of schools providing education to children with disabilities are private. Or dancing schools? Or specialist music schools? Or mainstream schools with a lot of children with autism who can’t cope with state schools and places paid for by councils through EHCPs? What about online schools? Secure units? Residential schools? Sixth form colleges? Specialist colleges? What about private universities? Arts colleges? Drama schools?

How about they pay VAT but the councils also provide the school with the funding they would have had to pay to educate them in a state school?

Why is it that a country like Finland that has no private schools manages to educate all its young people better than the UK?

I think he will do this in the first term. Other Labour governments have wanted to do this but Keir Starmer will find it easier than Tony Blair because he didn’t go to a private school. Neither sent their children to private schools but it’s easier for a PM who didn’t attend one.

Also why only non-state-owned schools where the majority of fees are paid by parents? Why not those where the state pays? Most academy trusts? CoE schools?

I wonder what the plan will be for SEN children when independent schools become even more unaffordable or close.

I know parents who fund their children to go to small independent schools because their children wouldn’t cope in mainstream state. This saves the tax payer money as they would likely need extra support if they were in mainstream state.

My DS goes to an independent specialist school funded by our LA. There aren’t any suitable LA schools which is why he’s at an independent. The LA fund it, their bills will increase.

There aren’t enough special school places to support all children in need in my LA. Increasing the costs of independent schools will push more into state funded education which I worry will lead to more children missing out - SEN children won’t get the support they need which impacts on everyone around them.

Is there a plan to mitigate this as at the moment SEN services are seriously stretched.

Finland does have a few private schools, they are just forbidden to make a profit from education. Also while Finland is held out as a beacon it’s educational standards have been steadily declining and have been overtaken by Estonia in Europe (Asia dominates the top of the table above it). In 2018 PISA scores for maths were not significantly different from those in the UK.
It also has one of the largest different between sexes of any oecd country for literacy.

So in a sense we’re looking at the late 2020s maybe 2027ish? I can’t imagine it speeding through Parliament, I too can’t stomach a 20% rise but think I could to get rid of the Tories.

Looks like this will happen now, on a couple of front pages tomorrow.
likely that it will be implemented for the 2025/26 academic year.

Oh no! Which papers please? I’d like to see exactly what’s being said.

Given that the average private school fees rise last year was in the order of 7%, with many over 10% and private school rolls have increased, I don't see adding VAT to a luxury item being a particular problem.

The independent, The I.

Labour have to win the election first.

As a parent with a sen child in an independent school I have to say I find your use of the phrase thick but rich to be profoundly offensive.

I’d rather the Head kept his thoughts to himself at the moment. Am I being too harsh?

Why? Do you feel talking about money is vulgar? Do you feel he is scaremongering about something very unlikely to happen? He is only making parents aware so they can perhaps plan to cut their trip to the Maldives or go down to 2 instead of 3 holidays per year.

Quite frankly, of all the people I know who go to private school, precisely none would be 'unable to afford' VAT. It may involve other 'sacrifices' though.

Our school fees went up 10% on this years bill. The previous year it was 4%.

10% was a massive thing, we had so much correspondence explaining why it needed to increase. 20% would definitely see numbers drop. Is that’s what Keir wants ? The amount of vat will be very small in the scheme of things. What about billionaires paying tax here for starters?

I can honestly tell you that the parents at the indie my DC goes to are not millionaires. You only need to look at the car park at the end of the day to see that.

Is there a plan to mitigate this as at the moment SEN services are seriously stretched.

There definitely won't be under the Tories. The LA will need to take the burden as they do with many other things, it's probably very small drop in the ocean. Meanwhile, proper funding from the top is essential and it won't be coming from this government.

I have written to the Labour candidate for my area. It is one of the hardest seats that Labour have to win so they can't afford to lose any voters. If anyone is seriously worried (as we are) then contact your Labour candidates now. If sufficient feedback and pushback is received then that is the way to mitigate the policy. It is the 1 policy preventing us from voting Labour and Labour are desperate to win so any pushback needs to happen now.

I will still vote Labour but it will be through gritted teeth. Im not sure if we will be able to afford a 20% fee increase. My son is bright but has ASD and I fear would really struggle in our local comp. My daughter attends a specialist performing arts school, though grandparents pay for her fees. We will probably try to keep them in their private schools until a natural exit point and then move to state. My youngest will remain in state.

Heads are worried.

Given what schools can reclaim, the additional cost is more like 15%, of which schools are already preparing to absorb some, by raising fees more than teachers’ salaries, to build a surplus.

I have read that it is estimated that, given the above, fees would go up by around 10%, leading to a 7% attrition in pupils. If that is true, the measure would still raise significant revenue.

It is hard to say this isn’t fair and would be generally popular. Given that private school fees in London are now about 5x the pupil premium in state schools, it is hard to see that private schools couldn’t find savings if they needed to.

This would effect less well off families the most. Currently fee paying parents accept that a proportion of their fees help more disadvantaged families through bursaries/scholarships & use of school facilities to justify charitable status for the school.
As many parents would not be able to afford an additional 20%, the school will inevitably cease its charitable offerings (including free education for some) to maintain affordability for fee payers, although a proportion of the 'just about managing' parents will also be squeezed out by a smaller (e.g. 10% overall) increase.
This is an awful policy if its as reported in the I, and whilst I would do anything to get the Tories out, I would not be voting Labour (& will not renew my membership). Other tax raising possibilities e.g income tax, CGT, wealth taxes, city transaction tax, closing offshore loopholes etc I would be much more supportive of and would raise much more money for public services.
If they had a policy that only penalised those private schools that do not give a sufficient number of bursaries to disadvantaged families or did little or nothing for the community I would also be supportive of

‘20% would definitely see numbers drop. Is that’s what Keir wants ?’

Your school is a business and not a charity. Which is why this is happening - the school is being given a tax break that they shouldn’t have.

The schools don’t have to put the fees up, the recent increases haven’t had anything to do with government policy.