VAT on fees continues to damage state and independent education, says ISC spokesperson

In an interview with LBC’s Matthew Wright, Ms Cunnane said: "This was an unprecedented tax on education; it was right to test its compatibility with human rights law. But it’s also right that we continue to raise the negative impact that this tax has had – and continues to have – across both state and independent education.

"We know that over four times the government estimate for children leaving independent education have left this year; they had indicated it would be about 3,000, it’s actually been around 13,000 across the UK. It doesn’t take the sums to be off by much – and as you can see, they’re off by more than a factor of four – for the policy not only not to raise anything, but potentially cost the taxpayer money."

Referencing a recent suggestion by Sir Keir Starmer that revenue raised by the tax policy would go towards affordable housing, she added: "What we're looking at now is the very real prospect of money leaving the education ecosystem and not going back, which won't help any children." 

On the effects of pupil movement, Ms Cunnane warned: "If children are moving from the independent sector to the state sector… that is going to increase pressure." She added that the tax policy will have "ripple effects" across education, impacting SEND provision and intensifying competition for state school places.

Ms Cunnane concluded by emphasising the ISC’s continued scrutiny of the VAT on fees policy, stating: "We will be considering our next steps but we feel it’s very important to hold the government to account. They have made some claims about how much this policy would raise, how many children would leave the sector, the improvements that they plan to make to the SEND system, and we think it’s important to highlight where the rhetoric is not being matched with action or cash."