Labour’s private school tax plan sparks debate across country

The  removal of tax exemptions for private schools is part of Starmer’s strategy to raise funds for public services and address the country’s financial shortfall.

• EasternEye
• 30 September, 2024

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By: EasternEye

MARK Manwaring-White, 67, had been planning to retire, but a policy introduced by the Labour government could increase his daughter’s school fees by 20 per cent. As a result, he will keep working to cover the costs.

The Labour government’s removal of tax exemptions for private schools, effective from January, is part of Keir Starmer’s strategy to raise funds for public services and address the country’s financial shortfall. However, this policy comes with political risks.

Manwaring-White’s daughter attends Malvern St James, a girls-only private school in central England. As an electronics engineer, he believes Labour’s decision stems from envy towards those who can afford private education, which he considers of higher quality. For him, the sacrifice is worth it. “It’s given her a most amazing education that she couldn’t have got locally,” he said. He also expressed concerns that pushing more children into state education would “dumb down society.”

About 600,000 pupils attending private schools now face a similar decision – either pay higher fees or consider state schools for their children.

The government estimates that removing the VAT exemption will generate up to £1.5 billion annually, funding 6,500 new state school teachers and increasing the state school budget by 2 per cent.

Labour argues that this move will help address the gap between private and state education, a system criticised for fostering privilege among the wealthy.

However, critics warn of a possible exodus of students from private to state schools, putting further strain on the state system.

In a pre-election debate, Starmer said, “I want every single child, wherever they come from, whatever their background, and whichever school they go to, to have the same opportunities.”

Labour believes the impact on private school enrolment will be minimal, as stated in a government blog in September. A poll by Ipsos in August showed that more than half of Britons support the plan.

(Reuters)