State schools to receive £1.7bn boost from scrapping private school VAT break
https://www.itv.com/news/2024-12-29/state-schools-to-receive-17bn-boost-from-scrapping-private-school-vat-break?utm_medium=Social&utm_source=Twitter#Echobox=1735464759
by HadjiChippoSafri
30 comments
Glad we can finally plug the £500-per-day-taxi-for-each-schoolchild funding gap.
Roughly £50k per school per year just from VAT money.
Not going to be world changing but welcome when schools are basically broke.
But I was told that this would have some random opposite effect reducing equity somehow.
I look forward to hearing how this is bad for average kids
Wont somebody think of poor Thomas Taylor-Thomas Or young Fergus Fitzroy-Ferguson
The rebalance is happening.
Any arguments against the rebalance are rich selfish people.
I don’t like Starmer btw but feeding the rich for 14 years has left us on our knees in the public sector.
Good! Glad to see Labour doing something right for once.
Did no one here notice that if schools are being charged VAT, they can claim VAT back on building work already carried out ?
This figure is frankly a bad guess in a single report that the government has not bothered to test.
Frankly private schools should be scrapped. Finland has it right in this area imo. Make the toffs and rich kids go to a state school, they want to donate to education they can do it nationwide.
There’s no point to these institutions other than to give the old boys a place to network before working age.
Thank goodness.
Given the state of SEND provision being in the news lately, this money could be really helpful.
Maybe there is a reason why virtually no other country taxes education.
Greece tried it, and it backfired massively, with many private schools closing and tax revenue dropping.
New Zealand taxes education but also gives subsidies to families going private, so not comparable.
Brilliant. It’s closing these small loop holes that will make the difference to our society.
I still think it should’ve been gradually phased in, 5% in year 1, 10% in year 2 etc. and most sensibly coming into force at the beginning of the school year
I work in schools, always have.
This will actually help as in most cases, many schools have been running on a tightrope of funds.
Weren’t we all told that this would save barely any money and it was pointless? Might have been a lie.
Nope. The numbers are modelled rubbish.
Eton is claiming back about £13m in backdated VAT for example (friend of mine knows the headmaster).
>The government has also pledged an extra £2.3 billion for the core schools budget, which the Treasury said will be funneled into hiring 6,500 new teachers.
6,500 teachers costing £360K each, more spin.
In reality most of the uplift will be spent on cost increases, 10-15% will be spent on new teachers.
Cool, they should be able to pay a little bit of their increase NI bill now. Absolutely should be robbing Peter to pay Paul!
The ponzi scheme continues…
It’s not a tax break, the article is spreading misinformation and so is the treasury.
It’s not a VAT break. Education in the UK doesn’t attract VAT. They’re adding VAT to private schools.
…And then many of the the private schools will go out of business and then that VAT break will be absolutely superfluous(!)
Private schools have become much more difficult to afford even for the upper middle class, high earners. Many began dropping out to state schools, even realising that the teacher/student ratio is far higher and less achievement is expected.
I am pretty certain Rachel reeves doesn’t understand how VAT works.. surely the schools will now also be claiming back VAT on purchases as well? Or were they doing that already?
Thousands of kids have just been dumped on to the state system from this stupid vat break thing. This will be the gov robbing money from somewhere else and claiming victory.
In my experience of UK schools, the logic of “taking“ from schools which are able to INNOVATE AND ENRICH is breath-takingly stupid.
What Central Government should do is encourage State Schools to internally INNOVATE and thence develop EXCELLENCE befitting their situation for the types and ranges of students that is their intake.
The one size fits all heavily bureaucratic pantomime of state education mostly fails the majority of students in restricting their school education to core + options classes and teach to test curriculum for an over credentialized certificate driven system excessively set up for processing for higher education and university as opposed to a wider range of careers and skills for the modern job market.
The main reason to pay through the nose for average private school education is to ESCAPE the above and EXPAND the exposure of options and activities…
All I see in discussion is punitive reasoning for press ganging all the rest of the children into inadequate state provision which fundamentally is too often, “you pay taxes and we give free tepid bland schooling” for your children while you are economically active while they are corralled for the day in a child factory processing sausages out the other end…
Rachel from complaints/accounts/tea fund manager has caused thousands of children’s education to be ruined and caused them untold stress…..all this after her lot also pushed for schools to closed during Covid as well.
They are using children to carry out their evil politics of envy, whilst of course they themselves benefited from the private school system.
They truly are despicable. She’s also wrecked growth with 10 year gilts now worse than when Truss was in power….silence from the BOE/Media, though.
No wonder their polling is through the floor. 2025 is going to be very interesting indeed politically.
I’ll bet a lot of money that it doesn’t come close to raising that much money.
Lies from the MSM. Private schools policy is actually panicking the Labour Party. [https://www.youtube.com/watch?v=WgkIX3A37CY](https://www.youtube.com/watch?v=WgkIX3A37CY) .
A few extra pupils due to the decreased affordability of private schools, per school, and that is a lot of the budget up the spout.
I predict they won’t take nearly as much as they hope from this measure and that the impact of more children moving from private to state schools will be higher than they expect.
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