The Telegraph published a new survey of 350 school heads on Sunday that joins the growing chorus of data warning against the effect of adding VAT to independent school fees.  The survey found that, if Labour add school fees:

• 95% of independent schools will increase prices.  Of these, 76% will increase school fees by more than 10%.
• Nearly 80% of schools would have to reduce scholarships and bursaries.
• Nearly 66% of schools would have to reduce partnerships with state schools.
• Nearly 75% of schools fear they would be forced to close in the next five years.

Imagine 75% of independent schools being forced to close and consider what that means for the education landscape as a whole.  It means fewer choices for parents and more pressure on state schools, especially more popular schools.  It also means less support for children who need it.  

News broke last night in The Telegraph that Labour have not even shown interest in supporting children with special education needs; they have refused to speak with specialist schools worried about children with conditions such as autism and dyslexia being priced out by this change, let alone schools that have large numbers of children with special education needs.  

Labour previously committed not to pass on VAT with children on Education Health and Care Plans (EHCPs), but this is a small proportion of children with special education needs and their places are often funded by local authorities, rather than parents themselves.  Even Shadow Education Secretary Bridget Phillipson acknowledged that reforming special education needs provision in state schools will take time.  It looks like that doesn’t matter.  

Last week, economists from the Adam Smith Institute showed that the numbers Labour use to justify this policy don’t add up.  Labour frequently cite a paper by the Institute for Fiscal Studies (IFS), which estimates that just 3-7% of students would go and the Treasury would generate up to £1.5bn.  The Adam Smith Institute undermined the IFS assumptions and found that the Treasury would break even if between 10-15% of students leave, and could lose £1.6bn if 25% of students leave.  Even if Labour do add VAT, the thinktank EDSK identified numerous obstacles that would make this anything but straightforward.  This would further add to the Treasury’s costs.

Ashbridge Partners recently surveyed 1,000 parents with children in independent schools, and found “18 per cent of parents would definitely move their children out of private schools and a further 21 per cent would probably do so.” 

The data is clear: School fee VAT will force children out of their schools.  It won’t make money for state schools.  Who does this help?  

Share the message far and wide, and encourage as many people as you can to sign our petition.  This affects everyone in independent schools, as well as state schools (especially oversubscribed state schols).  Be a "school champion", encouraging parents and others to sign and share.  Please also consider sharing your stories, and we could also use some help (especially with comms to help us write more regular updates!).  You can get in touch with us through our “Contact Us” page.

Thank you all for your continued support!  The evidence mounts that what we’ve said all along is right: Forcing children out of their schools helps no one.  Pitting schools against each other helps no one.  It’s far better to encourage schools to work together to improve education for all.

Tony Perry

Education Not Taxation