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Q&A: Proposal to apply VAT on school fees

06 November 2023 / Elizabeth Small
Issue: 4912 / Categories: Comment & Analysis
Elizabeth Small discusses the Labour party’s proposal to apply VAT on school fees.

What is the new development?

The Labour party (according to the Guardian) has ‘clarified that it intended to raise about £1.5bn through tax changes such as adding VAT to school fees without stripping them of charitable status as Sir Keir Starmer and other shadow ministers had previously suggested’.

As the Guardian went on to note: ‘Bridget Phillipson the shadow education secretary defended the decision on not removing charitable status saying it was “not necessary” for the party to go ahead with its VAT plans in government. “I’ve always been focused on how we end the tax breaks and how we then use that money to deliver higher standards in our state schools. Ending charitable status was not a necessary part of doing that ” Phillipson said during a Q&A session hosted by Mumsnet. “We can press ahead with ending the tax breaks relatively quickly...

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