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UK Government Stands Firm On VAT For Private Schools

October 8, 2024
Lawrence Ankutseby Lawrence Ankutse
in UK
0
UK Government Stands Firm On VAT For Private Schools

James Murray, Treasury Minister

The Treasury has rejected calls to delay the introduction of a 20% VAT on private school fees, insisting the funds are needed to fulfill the government’s education goals for state schools. Despite warnings from unions, tax experts, and school leaders, the policy remains on track to take effect on 1st January 2025.

James Murray, Treasury Minister, confirmed the government’s commitment during a debate in Westminster Hall, reiterating that the introduction of VAT on private school fees would not be postponed. 

He explained that schools and parents have had sufficient time to prepare and that the revenue generated from the VAT would go toward crucial improvements in state education. “We want to raise the funding we need as soon as possible to deliver our education priorities for state schools across the country,” Murray stated.

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Reports had emerged over the weekend that the VAT addition could be delayed following strong opposition from groups like the NASUWT teachers’ union and the Association of School and College Leaders. They argued for a more reasonable timeframe, suggesting a delay until September 2025 to allow schools to manage the change better.

No Delay For VAT Policy Amid Warnings

Murray dismissed these concerns, assuring that schools would have HM Revenue and Customs support to manage the registration process. “We expect most private schools will be able to absorb a significant proportion of this new VAT charge to keep fee increases affordable for most parents,” he said.

Meanwhile, the policy received backlash from some MPs following a social media post by Education Secretary Bridget Phillipson, who mocked private schools for making cutbacks in response to the tax. 

In a post on X (formerly Twitter), Phillipson shared a report on schools reducing expenses on embossed stationery and swimming pools.

“Our state schools need teachers more than private schools need embossed stationery. Our children need mental health support more than private schools need new pools.”

Bridget Phillipson
Bridget Phillipson DfE
Bridget Phillipson

This sparked a sharp response from Conservative MP Graham Stuart, who called the tweet “malicious and spiteful.” He demanded an apology for the tone of the post, but Murray defended the government’s stance. “[Neither] I, nor any of my colleagues, will make any apology for wanting to improve state education across this country,” he said.

The government maintains that the funds raised by the VAT will be allocated toward hiring 6,500 new teachers, expanding mental health support for students, and introducing breakfast clubs for all primary schools.

However, concerns persist about the impact the VAT policy could have on vulnerable students who attend private schools due to the state sector’s inability to meet their needs. 

Shadow Education Secretary Damian Hinds voiced his fears about how students with special educational needs, children from military families, and those from small religious communities could be adversely affected.

“This is a government in chaos – a chaos exemplified by this destructive, disruptive, and divisive education tax,” Hinds said, reflecting the opposition’s ongoing resistance to the changes.

Despite the criticism, the government remains steadfast in its approach. “We want to get on with these important changes right away, and to do so, they must be paid for,” Murray said, emphasizing the necessity of ending tax breaks for private schools.

As the debate continues, the VAT on private school fees seems set to move forward, marking a significant shift in how education is funded in the UK.

READ ALSO: Hezbollah Deputy Asserts Group’s Military Capability After Israeli Strikes

Tags: education policyJames MurrayPrivate schoolsState SchoolsVAT
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