Private school VAT could have ‘seismic impact’ on life chances

Girls’ Schools Association president says Labour’s ‘rushed’ policy is forcing ‘stark and unfair’ choices on parents
18th November 2024, 11:08am

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Private school VAT could have ‘seismic impact’ on life chances

https://www.tes.com/magazine/news/general/private-school-fees-vat-seismic-impact-life-chances
Private school leaders warn VAT on fees could have ‘seismic impact’ on life chances

The government’s decision to apply VAT to private school fees could have a “seismic impact” on girls’ life chances, a leading headteacher will say.

Alex Hutchinson, president of the Girls’ Schools Association (GSA), will warn that Labour’s “rushed” policy - which is due to come into effect in January - is forcing “stark and unfair” choices upon parents.

Mrs Hutchinson, head at James Allen’s Girls’ School in London, will call on headteachers to “stand up and fight” for private schools so young women can still access an “outstanding” girls-only education.

In a speech at the GSA’s conference in Manchester, she will argue that girls’ schools are at the “forefront of raising opportunities” for women and they play a “pivotal role” in creating a more equitable world.

Her plea comes after the Independent Schools Council announced plans last month to launch legal action against the government’s decision to apply VAT to independent school fees.

Addressing more than 150 heads of girls’ schools at the two-day annual conference, Mrs Hutchinson will describe the action as a “powerful moment” and say it is “right” to hold the government to account.

VAT policy is ‘widening the gap’

In a speech on Monday, the GSA president will highlight the “turbulent time” facing families who want a girls-only education, as well as those with children with special educational needs and disabilities in private schools.

She will warn that the Labour government’s policy risks “widening the gap between the privileged and the aspirational”, adding that GSA schools spend £146 million each year on fee assistance for families.

Mrs Hutchinson will say: “We are at a defining moment in girls’ education. Girls’ schools play a pivotal role in creating a more equitable world - the very foundations of GSA are based on civic duty.

“Our schools have always been at the forefront of raising opportunities for young women through education. The government’s rushed VAT policy has the potential to have a seismic impact on girls’ life chances. It is forcing stark and unfair choices upon hard-working families.”

Last month, chancellor Rachel Reeves confirmed in the Budget that 20 per cent VAT would be applied to private schools in the UK from January.

The government has estimated the policy will raise £460 million next year, rising to £1.7 billion by 2029-30.

‘Unintended consequences’ of VAT policy

The president of the GSA, which represents both independent and state girls’ schools across the UK, will add: “We are clear that no political decision should adversely impact the young people in our schools.

“It is a matter of priority for us to talk about the unforeseen and unintended consequences of making policy changes mid-flow in pupils’ educations.

“It is unthinkable that any girl in any of our schools feels her educational choice has been limited or removed, in any way.”

On average, the government expects private school fees to increase by around 10 per cent as a result of the introduction of VAT.

The government has predicted that 35,000 pupils will move into UK state schools over time, and a further 2,000 children will leave private schools to be educated in schools abroad or at home.

An HM Treasury spokesperson said: “The government has made difficult decisions on tax now to fix the foundations and increase investment in public services and the economy, to rebuild Britain and unlock long-term growth.

“We want to ensure all children have the best chance in life to succeed. Ending tax breaks on private schools will help to raise the revenue needed to break down the barriers of opportunity for children and young people across the country.”

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