‘British government slapped with tax raid on fees, educators cautioned last evening.’
The payment for private school fees will be due immediately starting from Wednesday.
The Independent Schools Council has expressed concerns that the new policy will negatively impact children and families, even those in state-maintained schools.
The opposition accused Labour of disrupting “thousands of children’s education” vindictively during the middle of the school year, thus increasing the burden on the education system.
Labour vowed to impose a VAT rate of 20 percent on private schools and eliminate the 80 percent relief private schools currently receive on business rates, effective from April, according to their election manifesto.
The government’s unexpected decision to implement a VAT change on January 1st has outraged critics, who are concerned that it might prompt children to switch schools in the middle of the academic year.
On the eve of the policy’s introduction last night, Julie Robinson, CEO of the Independent Schools Council, expressed the opinion that it would severely compromise private education.
“The Government’s hastily introduced tax policy on independent schools will have a substantial negative impact on the educational opportunities for children in both independent and state-run schools,” she stated.
‘The true scale of school disruptions and closures will unfold in the coming years, largely impacting children, families, and local economies, as well as heightening competition for coveted spots in highly-regarded state schools.’
We would like to continue working with the government to make educational opportunities available. A collaborative approach serves everyone better than threatening a valuable part of education.
I am concerned that this increase in Value Added Tax (VAT) will not provide any aid to state-run educational institutions.
The Labour Government is abruptly interrupting the educational progress of thousands of children mid-term, and the outcome will only intensify the demands on the education system.
‘In the end, it is pupils, parents, and educators from the public sector who will bear the brunt of this development.’
A study conducted by the Independent Schools’ Bursars Association earlier this year revealed that an estimated 11 percent of independent schools might consider closing due to the changes in Value Added Tax (VAT).
Based on a survey that is likely representative of ISBA membership, it appears that approximately 141 schools may cease operations – placing additional strain on the public education system.
UK Education Secretary Bridget Phillipson sparked widespread anger over the weekend by suggesting middle-class parents back her government’s plan to increase taxes.
She describes herself as “the voice of pushy middle-class parents, who are predominantly unable to afford private school tuitions and admissions.
According to Ms Phillipson, the average annual tuition fee at private schools has now reached a considerable sum of approximately eighteen thousand pounds.
She added, “Middle-class parents in positions of stable professions with elevating housing expenses often find it difficult to afford costs of that calibre and eagerly seek out superior state schools.”
‘This policy enables us to secure additional funding to prioritize investments that significantly benefit families.’
A spokesperson for the HM Treasury explained that discontinuing tax exemptions for private schools would generate approximately £1.8 billion in revenue by 2029, which would benefit the approximately 94% of children attending state schools in achieving their full potential.
With nearly five months having elapsed since the announcement, it is reasonable that we now implement the new changes in schools to effectively support our educational objectives.
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