Hi All,

Two events were held last week that questioned the maths Labour are using to justify their plans to add VAT to independent school fees.  We attended and spoke at both events.  Our voices are being heard, and these events show that more people can be encouraged to look at this policy more critically. 

On Monday, the Chartered Institute of Taxation (CIOT) held an event called “Should VAT be charged on private school fees?”  The event brought together leaders from CIOT, the Institute for Fiscal Studies (IFS), the Independent School Council (ISC) and others to explore whether, and how, VAT might affect schools, students and wider questions of social mobility. 

The IFS evidence remains what their research paper called “thin” and “limited”, but they still believe that 3-7% of children being forced out of their schools is a “best guess”.  Sam Freedman of the Institute for Government spoke “for” the education tax and said he thought that 3-7% was too pessimistic.  He agreed with Bridget Phillipson that schools would be able to make savings (without, of course, explaining how or what would be the consequences for teachers’ and support staff employment).  

Parent surveys, however, indicate far higher levels of movement.  The FT published a survey of 1,000 parents by Ashbridge Partners that found that “18 per cent of parents would definitely move their children out of private schools and a further 21 percent would probably do so.”  Another survey of 750 parents by Klinic, published in The Sunday Times, found that “23 percent have decided to move to state schools”.  This weekend, The Telegraph and The Times reported on a third survey of 2,000 parents by the Saltus Wealth Index.  They found one in four parents would take their children out of their schools.

Giving us a good flavour of the (poor) quality of the public debate…Freedman told us that “he’s not a hard socialist” but minutes later “was enraged by all The Telegraph coverage given to parents on £150k not wanting to pay more tax”.  Not one of the parents that we have highlighted as struggling with affordability of school fees earns anywhere near £150k, of course.  In fact, the UK doesn’t have enough earners at that level to fill our private schools even if they all had school-age kids.

Sam Freedman proves a hard character to pin down, in our view.  Our friend Mr Chips had a go at him here on X and we thought that Freedman struggled to hold his own under detailed questioning. (You can read Mr Chip’s blog on Substack).

On Thursday, the Private Education Policy Forum (PEPF) held a virtual event called “Labour’s Private School Tax Plan: The Numbers”.  This event brought together Luke Sibieta, author of the Institute for Fiscal Studies paper Labour rely on, and Tom Richmond, Director of the EDSK think tank, which published research questioning the benefits of adding VAT.   They also gave the audience an opportunity to ask questions, and several of our supporters were able to participate.

Both agreed that implementing this policy would be incredibly difficult.  They explored how much (if any) tax revenue this policy would generate, as well as how many children would move into state schools.  They also considered the VAT exemption for children with Education Health and Care Plans (EHCPs), and the wider issue of a broken system for children with special education needs in education.  Luke Sibieta said he himself had mixed views on adding VAT, and could make arguments for and against it.  They also talked about wealthier parents paying school fees in advance and noted that it would be incredibly difficult for Labour to add VAT to fees paid before the election.  

You can watch the PEPF event here.

In other news, Rod Clifton, Headmaster at Clifton Hall School in Scotland, made a heartfelt plea for Labour to reconsider this policy in a Facebook post.  He says: “whatever the economic arguments, whatever the political expediency in implementing such a policy, the victims are children.”  Parents know this all too well.  

Ultimately, our success comes down to getting the word out to as many people as possible.  This is an issue that will affect independent schools, as well as state schools.  Even those able to afford VAT could find themselves having to find a new school if their child’s school closes because of this policy.  It can also affect families planning to send their children to popular state schools, as other families join the competition for places.  

We all want great schools, but we can’t get there by forcing kids out of their schools, and pitting schools against each other.   Keep sharing the change.org petition far and wide, and act as a ‘school champion’ in your child’s school to help others make the case.  The Education Not Taxation website provides helpful information to those new to this issue. Finally, if you’re a parent of an independent school child, join our Facebook page to share ideas.

We’re also on the lookout for more stories, as well as people with social media and comms expertise.  If that’s you, or you’d like to help in another way, contact us here.

We’ll share further updates soon.  In the meantime, have a great week!

Tony Perry