Sir Keir Starmer laid out six “first steps” for a Labour government, if elected.  One of those includes recruiting 6,500 new teachers, which he said will be “paid for by ending tax breaks for private schools”.   This means Labour intend to make school fee VAT one of the first things they will impose.

The benefits aren’t clear…

As reported in The Guardian, Starmer warned that there is no “quick fix”, and that it will take two Parliamentary terms – ten years – to achieve their pledge goals.  This means that children will be forced out of their schools when parents can’t afford the VAT, and will be sent to schools that are not equipped to support them.  By the time Labour achieves its grand vision, most children affected will have left secondary school.  Worse yet, Schools Week report today that Labour’s new teachers “would be for secondary schools only.”  This means no focus for primary schools and specialist schools for children with particular needs.

Any money received from taxing independent school fees, after paying for additional costs from families unable to pay even more for independent schools, will take years to translate into additional teachers.  Teachers need training, and (for best effect) they have to be willing to fill the vacancies of greatest need.  Even when new teachers are in place, it does no good if schools struggle to retain their current teachers.  Schools Week report that just 59% of teachers expect to be in their job in three years time.  Clearly there are structural issues with some state schools; the rhetoric that puts all responsibility on independent schools is simply an unwelcome distraction.

Students, and their parents, may not even notice a difference.  They will, however, notice more children moving into state schools.  Especially popular state schools.  Grammar school heads have already expressed concern about poorer children being priced out of places.  Popular state primary schools will also see catchment areas shrink even further.  Even without school fee VAT, the market is tight.  The Daily Mail reported in December 2022 that the state primary school that Sir Keir Starmer’s children attended had a catchment area of just 182 yards and house prices were north of £2m.  

It’s already happening.  According to The Telegraph today, Independent Schools Council data shows that 3,000 fewer pupils started at independent schools this year compared to last year.  They say most will have gone to state schools, costing the taxpayer an estimated £22m.

…but the costs are significant, and taxing education is the wrong way to pay for them

All taxpayers and all families want education to work better;  we at ENT just want more kids at good schools.  We know that adding school fee VAT will harm schools and disrupt families, causing unintended costs for minimal benefit.  The problems facing education are bigger than the simple labels of “independent” and “state” schools and, as the Adam Smith Insitute paper argued (it’s well worth reading the conclusion if you don’t have time for the whole thing), regardless of how Labour wants to spend money, and regardless of any other ideas to improve schools, taxing education is about the worst way to go about it.

Even Paul Johnson, head of the Institute for Fiscal Studies (whose paper is used to justify Labour’s policy), warns: “Don’t be fooled into thinking [school fee VAT] is going to make any real difference to the amount of money available for public services.”  We also won’t solve these problems by demonising schools, independent or otherwise.

Thanks for supporting us - please help us spread the word

As we explain in more detail on our website, there’s a range of ways to oppose the VAT policy, depending how much time you have.  It takes seconds to ask friends and family to sign the petition.  It takes a few minutes to write to your MP or to candidates.  It takes a few hours to organise some events and engage local press.  Or if you have any expertise in e.g, PR, campaigning, we’d love your help.

Please continue sharing our petition far and wide.  Over 115,000 people have now signed, and our voice is getting stronger.  Please also spread the message in your own schools.  Encourage as many parents as possible to sign, and consider coffee meet-ups and similar events to raise awareness, and consider joining our Facebook page.

Please also keep writing to your MP and candidates of other parties to stress the importance of this issue for you.  We are being heard.  Earlier this week, Hugo Pound, the Labour candidate for Tunbridge Wells, expressed his own concerns about the VAT policy and suggested stronger ties between independent schools and their communities (e.g. shared use of facilities like swimming pools and football pitches).  We know of other MPs and candidates for Labour and other parties who also have privately raised concerns.  

Please also consider sharing your story, as this helps shape hearts and minds; if you’d be willing to share your story, please let us know through our Education Not Taxation page.   

Thank you all for your continued support!  We look forward to sharing further updates soon.

Tony Perry
Education Not Taxation