Students 'paying the price' of new tax on private school fees, Conservatives warn

31 December 2024, 22:57

Students 'paying the price' of new tax on private school fees, Conservatives warn
Students 'paying the price' of new tax on private school fees, Conservatives warn. Picture: Alamy

By Katy Ronkin

Pupils, parents and teachers face "paying the price" of a new tax on private school fees, the Conservatives have warned after the Chancellor welcomed an end to the "VAT break".

Listen to this article

Loading audio...

Rachel Reeves has vowed "more teachers, higher standards and the best change in life for all our children", as the long-standing VAT exemption for private schools ends on New Year's Day.

But Tory shadow education secretary Laura Trott has said the move will "add pressure to the education system" in 2025.

Read more: Plea for Labour to make science lessons 'less western' blasted as 'ludicrous proposal from the wokerati'

Read more: Is your area the worst in Britain? Top 10 worst places to live in the UK revealed

Headteacher of private SEN school criticises VAT introduction on independent school fees

She said: "This rise in VAT will do nothing to help state schools.

"The Labour Government are disrupting thousands of children's education vindictively in the middle of the school year, and all it will do will add pressure to the education system.

"It will be pupils, parents and teachers from the state sector that will end up paying the price." Labour promised to "end the VAT exemption and business rates relief for private schools to invest in our state schools" in its 2024 general election manifesto.

Screen grab of Shadow Education secretary Laura Trott.
Shadow Education secretary Laura Trott. Picture: Alamy

The Government has claimed "thousands" of state schools will receive an uplift in their funding next year, with an extra £2.3 billion for the core schools budget.

Applying VAT at the standard rate of 20% on private school education and boarding fees will raise £1.5 billion in 2025, according to the Treasury, rising to £1.7 billion a year by 2029/30.

Ms Reeves said: "It's time things are done differently.

"Ending the VAT break for private schools means an additional £1.7 billion a year that can go towards our state schools where 94% of this country's children are educated.

"That means more teachers, higher standards, and the best chance in life for all our children as we deliver on our Plan for Change."

Watch Again: Nick Ferrari is joined by Education Secretary Bridget Phillipson | 17/12/24

Education Secretary Bridget Phillipson said: "High and rising standards cannot just be for families who can afford them, and we must build an education system where every child can achieve and thrive.

"Our ambitious Plan for Change sets out our clear mission to break the link between background and success and ending the VAT break enjoyed by private schools will provide much-needed investment in our state schools, to help recruit and retain expert teachers."

More Latest News

See more More Latest News

Washington, DC, USA. 15 Apr 2017. A balloon caricature of President Donald Trump appears at the Tax March protest near the U.S. Capitol.

Buy US chlorinated chicken in return for lower tariffs, Trump tells Britain

From jeans to jet fuel and firearms to whiskey: Britain unveils lengthy list of US items facing tariffs

From jeans to jet fuel and firearms to whiskey: Britain unveils lengthy list of US items facing tariffs

Forensic investigators at Milton Keynes train station after a man was shot dead by armed police officers.

Knifeman shot dead by police in Milton Keynes after moving 'at speed' towards officers named for first time

The bodies of Andrew Searle and his wife Dawn were discovered by a neighbour.

British couple found dead in south of France home being ‘treated as murder-suicide’

Kerri Pegg, former governor of HMP Kirkham,

Prison governor denies relationship with drug boss 'Jesse Pinkman' after flip flops carrying his DNA found in her flat

Julie Goodyear as Bet Lynch. Her husband has now deleted a recent photograph of the actress which he shared in honour of her 83rd birthday on Wednesday

Julie Goodyear's husband removes rare photo of Coronation Street star after dementia diagnosis amid blacklash

The vehicle was later extinguished after the driver, covered in flames, emerged from the vehicle.

Amsterdam Dam Square car explosion sees driver engulfed in flames - just days after mass stabbing

Kanye West confirms that him and Bianca Censori have split.

Kanye West confirms split from wife Bianca Censori as rapper claims she 'tried to have me committed'

d

Pictured: US tourist arrested for sailing to remote island and leaving a can of Coke for world's most isolated tribe

The female athlete took a knee instead of competing against a transgender athlete in a fencing tournament.

Fencing row erupts as US athlete takes knee instead of competing against transgender athlete

Luton Airport

Luton Airport expansion plans approved by transport secretary despite environmental concerns

police officer uk jacket

Boy, 15, locked up after stabbing girl, 13, with sword and leaving her to die by side of motorway

The UK's charity watchdog has launched a probe into Prince Harry’s Sentebale charity

Prince Harry breaks silence as he attacks 'blatant lies' amid investigation into Sentebale charity

M5 closed in both directions after body found on motorway sparking police investigation

M5 closed in both directions after body found on motorway sparking police investigation

Lucy

Expert panel claims 'no criminal offences committed' in Lucy Letby case after bombshell new report into baby deaths

The Sentinelese are a pre-Neolithic tribe that rejects contact with the modern world

US tourist arrested for sailing to remote island and leaving a can of Coke for the world's most isolated tribe to try