City AM’s Post

So if this does happen across the country, where are all these children of aspirant parents going to get places in existing schools (all the popular schools will be full) and will this inevitably force independent schools to close, creating even more demand on the state sector?

Here are some questions: Is it fair to Tax the private school? Regardless of any other concerns like students going back into the public system. What is the real rationale for imposing a tax on an educational institution? To lower the British standard of education level across the board to the lowest common denominator?

As an update on previous articles we have published here at Saffery, my colleague Callum Richards has written a comprehensive article outlining key changes and considerations if VAT were introduced on school fees under a Labour government. This looks at which income streams for independent schools are likely to be affected and timing of when VAT would be chargeable. Whilst there is much uncertainty in this area at present, if you would like help planning for different scenarios please do get in touch. #vat #independentschools #schoolfinance https://lnkd.in/e__9dHiH

Navigating the Impact of Labour's VAT on Private School Fees Labour's proposal to impose VAT on private school fees is a hot topic right now, aiming to raise significant funds for state education. However, this move comes with its complexities and potential loopholes. Private schools could reclaim VAT on past large building projects and classify certain services to reduce their VAT burden. Why This Matters: - Financial Impact: The policy could raise up to £1.7 billion annually, aiding state schools. But, there's a flip side—parents might face increased fees, and state schools could see an influx of students transferring from private schools - Closing Loopholes: Labour plans to introduce anti-forestalling legislation to prevent pre-payment loopholes, ensuring fair taxation and maximizing funds for state education. Critics argue this could lead to unintended consequences, stressing the need for a thorough impact assessment. The debate highlights the delicate balance in policy-making and its far-reaching implications. What are your thoughts on the potential benefits and drawbacks of this policy? Join the conversation and share your insights below! #EducationPolicy #VAT #PrivateSchools #LabourParty #EducationReform #UKPolitics #StateSchools #TaxPolicy

This time last year I shared a post about the prospect of Labour putting VAT on independent school fees (something I am neither for nor against). My back-of-a-fag-packet calculations were that this would raise £1.75 billion a year. I have now stumbled across a report by the Institute for Fiscal Studies from July last year that reported a similar estimate (I am presuming they got their own, clever people to do the maths). The really interesting bit about the report is where it says "it is possible that the state sector could easily accommodate extra pupils given that overall pupil numbers across England are due to decline by at least 100,000 per year on average up to 2030". As a comms and marketing person I will be interested to see whether this recognition of over-capacity in the state sector starts to influence how the independent school lobby frames its argument against VAT on fees. A big element of the lobby's campaign has previously been that extra capacity would have to be created in the state sector to cope with pupils from families who could no longer afford to ‘go private’. But collapsing birth rates over the last decade mean that's simply not a valid argument any more....

Parent with child in #UK independent school? Concerned about VAT on fees? Financial Times wants to hear from you. FT Money is looking to speak to #parents concerned about paying #independent #school #fees when #VAT is added, and the impact it would have on their children’s education. Will Labour's plans make fees unaffordable for large swaths of families? Do you agree with the ethics of #taxing children’s #education. https://on.ft.com/3uAvYeI CC: Independent Schools Council

Imagine living in a country where train drivers & junior doctors are striking, farmers are financially failing, forestry planting is less than 50% of target, county councils are bankrupt, utilities are spewing effluent into the water; and burning virgin forest from around the world, waste being shipped overseas, a cost of living crisis, a shortage of affordable homes, an army and navy at breaking point, NIMBYISM curbing growth across multiple sectors, we are funding wars in far off lands, a state of uncontrolled immigration, ever increasing hidden taxes, significant debt to GDP challenges, an economy ex growth and a financial services led economy in near potential terminal decline … How does a parents right to chose to pay for their child’s education even get on the agenda let alone near to the top. It is big Government and a Nanny state gone mad!!! Get a grip. And focus on the real problems ahead. Wake the F… Up in the words of great Eddie Abbew The Labour Party The Conservative Party Rishi Sunak Keir Starmer Reform Party Gary Stevenson Mark Tinker Chris Tinker Marcus Ashworth So much of this is a political. Look at the Danes and how 5 parties have committed to a Hydrogen strategy that will survive party political BS because it is considered right by all.

May be we should think out side the box a bit. Why not give tax relief to those that send children to private schools as this reduces the demand on state schools! Why don’t we give tax relief to those with medical insurance to reduce the burden on the NHS. Instead of catching head lines why don’t we think of the bigger picture.

Totally echo the thoughts in this article. The sector is full of lovely parents really striving and it is sad that for the sake of politics the sector is caricatured as elite. I also worry for the children. Parents choose small classes for a reason.Not all children will be served well in the state sector, should their tiny Prep close following this increase... If you are ' in it' you know... There is room in the state and independent sector for all our schools. Collaboration would be so much more progressive. https://lnkd.in/e-ywu5N4

TAXING PRIVATE EDUCATION IS A NET LOSS The Labour Party are considering applying VAT to private school fees. This makes no commercial sense to me. For the moment, let’s forget notions of snobbery and elitism and just consider that the more people who send their children for private education, the more money the Government has for state schools. The private school parent still pays all their taxes, part of which go to the state school system. And now we want to tax them even more but, more concerningly, maybe dissuade some of them from the private sector, and maybe cause some private schools to collapse. Personally, I believe there's a stronger case for making school fees tax allowable, thus encouraging more and more people to take the pressure off the state, rather than disincentivising them by putting VAT on the fees. 👉 What do you think? #education #schoolfees #VATonprivateschools Credit: Dominic Penna | The Telegraph