No political party would put VAT on school fees if they put the tax payer's interests first!
Nicholas Pietrek
Headmaster at Stafford Grammar School, Council member of the Staffordshire Chambers of Commerce
If the Labour party genuinely put the nation ahead of their own party ideology, they would never impose VAT on school fees. The fact they are so determined to do so should be a massive concern to us all, not just those in Independent education. Maxwell Marlow's report for the Adam Smith Institute is a very balanced and objective piece of work and considers three scenarios:
I suspect somewhere between scenario 2 and 3 is likely though according to recent surveys that have been done they actually sugest scenario 3 is the most likely.
I was very fortunate to have the opportunity to chat with Brent and Adam on Teachers Talk Radio radio the other day about the issue of VAT on school fees. One of the areas we explored was whether the current VAT exemption was a tax break, as The Labour Party repeatedly state. Such a suggestion is categorically wrong and is simply trying to imply that 'the rich people' should be paying more tax and whipping up antagonism towards the Independent sector. It is worth remembering that those people who have sent their children to Independent schools have also paid tax that entitles them to a place for their children in the State sector that they have not taken up. Far from there being a tax break, these families are paying for their children's education twice and out of earned income that has already been taxed!! It must also be stated for the record once again, for the majority of people sending their children to an Independent school, it is a choice they have made and for the majority it has come at great personal expense and they will have made huge sacrifices to make it possible.
If Labour genuinely want to tax the privileged rich, tax the privileged rich, not the parents who are working two jobs to send their children to an Independent school. Maxwell Marlow 's report also points out that the same amount Labour seek to raise could just as easily be raised by putting an additional 3% VAT on alcohol. Perhaps not a popular move but I expect it would be a more guaranteed income for the treasury than a 20% tax on school fees since I suspect few would have to give up their drinks at that rate of increase and if they did it would be a genuine choice. Looked at another way, a tax on alcohol could improve the health of our nation and the health of our education!
领英推荐
There can be no doubt that there will be legal challenges should Labour follow through on this policy. Arguably there is already a case for families to claim a rebate on the tax they have paid for their children to be educated in the State sector which they have not taken up and surely this would be even more justified if VAT were to be put onto school fees because they would now be paying even more tax. Throughout the rest of Europe EU law states that tax should not be applied to education or health. The one country that sought to defy this was Greece in 2015 and it caused absolute mayhem and the government had to pull back on many of its measures which was no doubt incredibly embarrassing for them - a Greek reporter described the whole debacle as “a mix of incompetence and political obsession”. In New Zealand there is tax on school fees but this is offset by subsidies and the ability of those schools to apply for grants - Independent schools in England get neither and there is no indication they would under a Labour government. Labour should be looking very carefully at what other countries have done.
Rightly or wrongly, and this is where I hope those that have children in the state sector will take note, the Independent sector provides a benchmark against which our State offering can be measured. If you look to remove some of the best schools in the country from the equation, our state sector is likely to decline further because we will not be able to hold the Government accountable against what we can see being achieved. So many schools in the Independent sector are trying incredibly hard to work with the State sector so that they can work to level up but take them away and what will you be left with?
There is no doubting more money needs to go into State education but VAT on school fees is not the answer and will only lead to further decline in our schools.
The Society of Heads ISA Heads Independent Schools Council Independent School Management Independent Schools Portal Independent Schools' Bursars Association IAPS Tony Blair Institute for Global Change Independent School Parent Independent School Parent #vatonschoolfees #vat #independentschools
Co-Founder at Magnetic Communications - education sector marketing and communications specialists.
5 个月Excellent article! At Magnetic Communications we believe that the schools most likely to ride this wave successfully will be those with a robust, data-based and sufficiently resourced marketing and communications plan which clearly communicates the reasons for prospective parents to choose their school over competitors, and increases loyalty among existing parents to ensure positive word-of-mouth.? If your school needs help with this, whether to devise a marketing strategy from scratch, to review your current approach, or help you execute your marketing plans, we would be delighted to engage. Please get in touch by DM or email: [email protected].
Putting L&D where it deserves to be...on the top table.
5 个月I liked your comment about a 3% tax on alcohol would generate the same revenue as adding VAT onto private schools fees. Taxing alcohol would improve the health of the nation and the education of the nation.
Partner: Sector Head (Retail & Hospitality) and Head of Developers and Investors (Leeds/Newcastle) at Womble Bond Dickinson (UK) LLP
6 个月A tax on options and opportunities which prejudices the most vulnerable. IMO it’s ultra vires. It benefits no one (but the government). Directly impacts on the futures of ALL of our young people and, society in general. A point not covered in your superb post Nicholas Pietrek is parents concluding they’ll work less, or in lower paid/less skilled/stressful jobs, because private school isn’t accessible. Independent schools being ‘accessible’ is in everybody’s interests. Making them more expensive, inadvertently, prejudices. Private schools will still exist! I didn’t go to private school. My kids (10&6) don’t go to private school. However, I would like them to. The LinkedIn community all work hard, for our own reasons. If you are lucky enough to have kids, they are usually ‘the reason’. Taxes which target schools need to be stopped. I hope voters are sensible enough to see this. Initially you might think ‘yeah! I work really hard, can’t afford to send my kids to private school! Tax those posh rich people!’ That’s shortsighted madness. Think about your (already) struggling primary. Propped up by brilliant PTAs etc. If this is introduced there will be no winners.
Office Administrator in Admissions and Marketing at Wisbech Grammar School
7 个月Having worked in both state and independent education, my fear for families and pupils, when I work in an area where state pupils have not got their 1st, 2nd or even 3rd place at secondary and will be bussed along with many others to schools at least 30/40mins from their home (making the normal friendship bonds incredibly difficult) how will the current state system cope with the flood of independent pupils where many parents have made every sacrifice to give their children an education that suits their child, not every parent who pays for education is well off, so many will find themselves in a situation where they have no choice but to try to get their child into a school somewhere hopefully close to home, myself included. How do the pupils deserve this dramatic change in their education, some potentially at the most critical time?! I hope that this does not come to fruition because I don’t want to go to work in a job I love and watch the children’s lives go through such trauma, they didn’t choose this.? its not just about the money!?