Private school parents are used to yearly fee increases, says Labour MP
Parents of private school pupils are already “used to” fees going up every year, a Labour frontbencher claimed as he defended the party’s plan to impose VAT on the charges.
Labour has said it will add the 20 per cent levy to independent school fees if it wins the next election.
This has prompted fears that schools would simply pass the tax on to parents, potentially making private education unaffordable for many and triggering an exodus of thousands of pupils into the state sector.
Darren Jones, the shadow chief secretary to the Treasury, claimed on Wednesday that parents were “used to having to pay more each year for their private school provision”.
Speaking to TalkTV, Mr Jones argued that the independent education sector should not be exempt from paying tax “just because they are schools – they are private-run businesses”.
‘Private school fees have gone up year after year’
He said: “The money we think we can generate from closing that VAT loophole will be really vital to go into our state schools, who have seen a very, very significant real-terms cut in the funding to the majority of pupils that go to state schools across the country.
“The important point here is that private school fees have gone up year after year after year for many, many years, and so parents are used to having to pay more each year for their private school provision.
“What we have said to private schools is we are giving them advance notice of this so that they can transition to having to pay VAT through parent fees. Many of our schools are in a position to be able to pass this on over a number of academic years or to think about spreading the cost as opposed to lumping a whole 20 per cent on parent fees in one go.
“We would encourage schools to work with a Labour government if we win the election later this year to make sure that this policy is implemented in the best possible way for everybody.”
Labour stands firm on tax plan
Labour claims its policy would generate as much as £1.7 billion to spend on state education, and seven of the policies unveiled by Sir Keir Starmer rely on £1.3 billion of funding from the introduction of VAT on fees.
But an analysis published last month by the Adam Smith Institute (ASI), a free market think tank, suggested the tax raid could cost the taxpayer £1.6 billion a year if it forces a quarter of pupils into the state sector.
A poll for The Telegraph of 350 independent school leaders found 95 per cent expect to increase their fees as a result of Labour’s policy, while a survey by Ashbridge Partners this week suggested four in 10 parents were likely to withdraw their children if VAT on fees was introduced.
Labour has stood firm on its plans to tax private schools and the issue is set to become a major dividing line at the general election.
