Ministers 'underestimated' impact of VAT on fees on schools and families, says ISC deputy CEO
Simon Nathan, deputy CEO of the ISC, has said schools have been left with "limited options" following the government's imposition of a "triple whammy" of tax increases.
Speaking to The Telegraph, Mr Nathan said: "Many schools took the step of reducing their fees, excluding VAT, in January to try to cushion the impact on parents.
"But schools’ options were limited: they were hit with a triple tax whammy of the loss of business rates relief, the rise in National Insurance employer contributions and the requirement to place 20 per cent VAT on fees.
"The majority of any school’s budget would be spent on staff costs, which cannot be reduced quickly nor easily. It seems clear that the government underestimated the impact their decision to tax education would have on schools, families and children."