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Labour's VAT proposal on private school fees faces criticism and uncertainty

  • Labour plans to impose 20% VAT on private school fees if elected, potentially raising £1.7bn for state schools.
  • The policy would end tax breaks for private schools and could increase fees by 20% starting in the 2025-26 academic year.
  • Critics argue the policy may force 40,000-90,000 students into state schools and lead to potential closures of smaller independents.
  • Private schools warn of negative impacts on diversity efforts and contributions to the economy and jobs.
  • Labour has now abandoned initial plans to also strip private schools of charitable status due to legal complications.
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