Unions, tax experts and school leaders have warned that meeting the government's deadline for its VAT on fees policy will cause administrative chaos and teacher redundancies, and put pressure on the state sector. The Observer references concerns about the effect on the special educational needs and disabilities (SEND) sector if more state schools have to carry out SEND assessments on pupils moving from independent schools. Speaking to the paper, chief executive of the Independent Schools Council (ISC) Julie Robinson said: “Even those who are in favour of imposing VAT on the independent sector are saying that January 1 is not feasible.” By Toby Helm.
Speaking to Nick Ferrari on LBC, Ms Robinson reiterated concerns over the January start date for the VAT policy, highlighting the implications for families, schools, and local authorities. She also warned of the ongoing uncertainty surrounding the implementation of the tax, saying: “We’ve got over 200 questions lodged with the Treasury – that’s the level of detail that is lacking for schools.”
The Treasury has insisted that it will go ahead with its planned 20 per cent increase on independent school fees from January 2025, despite warnings from the education sector. A government spokesperson said: "Ending tax breaks on private schools will come into force on 1 January as planned. There has been no change in deadlines for schools or parents." By Jane Merrick, iNews.
Independent schools could face a “double whammy” of tax hits if chancellor Rachel Reeves introduces a levy on their staff pension contributions in the Budget later this month, experts have warned. Sir Steve Webb, former pensions minister and partner of consultants LCP, said: “The implications would be additional financial pressure on independent schools, which has already led some schools to change the pension offering to their teachers.” By Connie Dimsdale, iNews.
Sky News talks to parent Alexis Quinn, who claims ministers have breached human rights over the VAT policy. Ms Quinn explains she has made a "huge financial commitment" to move her daughter, who has SEND, to an independent school. Daniel Hood, headteacher at St Joseph's Preparatory School, which will close later this year, describes how pupils with SEND have been able to thrive at the school because of smaller class sizes.
Conservative constituencies are more than twice as likely to face a shortage of places for pupils in state schools under Labour's VAT policy, according to an analysis of House of Commons data commissioned by the Conservative Party. The research suggests 5.5 per cent of Labour-held constituencies in England are at risk of local state secondaries being unable to cope with an influx of pupils from independent schools, as opposed to 12.1 per cent of all Conservative seats. By Camilla Turner and Ollie Corfe, The Telegraph.
Universities risk being brought into Labour's VAT policy, tax associations have warned the Treasury. In written responses to a government consultation on the plans, the Institute of Chartered Accountants in England and Wales (ICAEW) said the current wording in the draft VAT legislation is too broad and could mistakenly affect higher education. The ICAEW has also criticised the government for nearly halving the standard 12-week window for official consultations to seven weeks in its independent school tax plans, warning that this left experts little time to produce formal feedback. By Poppy Wood and Ben Riley-Smith, The Telegraph.
Labour's VAT policy has not led to an influx of pupils at grammar schools despite some critics' predictions, according to data from more than half of England's selective state schools. Figures covering 91 of the 163 grammars in England show the total number of pupils registered to sit the 11-plus entrance tests has fallen, from 80,317 in 2023 to 80,091 in 2024. By Julie Henry, The Observer.
In an article for The Telegraph, Pieter Snepvangers considers the VAT policy's potential impact on military families and those whose children have SEND. Mr Snepvangers concludes: "It’s 50 years since a Labour manifesto first proposed taxing private schools, Sir Keir Starmer’s government is beginning to realise why those before him never went through with it."
Writing in The Spectator, Ross Clark suggests that imposing VAT on independent school fees is unlikely to cause financial strain for the government, although he says "none of this means that putting VAT on private school fees is fair, or that it is a wise policy".
Conservative councillor and Daily Express reporter Mieka Smiles explains why she is defending independent schools amid Labour's VAT policy. Referencing the threat to the education of children with SEND, she writes: "I have found myself a fierce defender of private schools", adding: "It’s a wholly ideological policy, dripping with the politics of envy and nothing more."
From moving overseas to opting for home schooling, The Telegraph talks to readers who are among those who face moving their children out of independent schools. Jon, the parent of three children, views Labour’s VAT raid "a vicious attack". He says: "It takes no account of the individual needs of many of the families making huge efforts to put their children into a school." Another parent explains how he is considering moving his family abroad in light of the policy, since his child has SEND and requires the specialist teaching provided at their independent school. He explains: “I pay tax and have done so all my life. To have to pay a tax for our kid’s school on top of it… I fail to understand it.” Reader Claire says she already works two jobs to afford independent school fees and "cannot fathom a third". By Tara Thorpe, Candela Orobitg-Baena and Telegraph readers.
Reference is made to research by the ISC and several schools in membership of the ISC's constituent associations are mentioned across this weekend's coverage.