Labor has hit back at Conservative attacks on its pledge to impose VAT on private school fees, with analysis showing a decline in public school partnerships.
The party has been accused of waging a “class war” against private schools, although Labor sources said the Conservatives’ 2017 manifesto also promised to review whether to charge VAT on school fees if state school partnerships do not increase.
The manifesto reads: “We will keep open the option to change the tax status of independent schools unless their partnership work is increased.”
Partnerships between private and public schools can take a number of different forms, including sharing facilities or expertise, invitations to events or even sponsoring academies – in the case of some larger schools.
The figures show that partnership working has fallen since 2017, when the annual report for the Council of Independent Schools found there were more than 10,000 partnerships. According to the same census, there were just over 6,900 in 2021, although the ISC said Covid had made partnerships difficult.
“Partnerships were at a record high pre-Covid, with 11,720 partnerships,” an ISC spokesman said. “However, in 2020 and 2021 partnership work has been affected by the uncertainty of Covid and government-imposed regulations – in some cases it would be illegal to carry out partnership activities during lockdown.
“However, many have adapted by donating to food banks, helping schools transition to online learning, or making or purchasing PPE. Now that Covid is no longer a factor, the partnership is recovering and growing again year on year.”
But a Labor source said the pandemic would mean schools needed more help, including with loans for equipment or collaborative Zoom sessions, saying it did not necessarily mean partnerships should end.
The Home Secretary, Michael Gove, has also previously backed the removal of the VAT exemption. Writing in the Times in 2017, he said: “Private school fees are exempt from VAT. This tax advantage allows the richest in this country, indeed the richest in the world, to purchase a prestigious service that gives their children a permanent advantage in society at an effective 20% discount.
“How can this be justified? I am asking the question in a genuine, honest inquiry. If the readers of the Times can tell me why we should continue to give such deafening government support to the already rich so they can buy an advantage for their own children, I’d be delighted.
A Labor source said: “[Rishi] Sunak’s political judgment is shattered. Running out of ideas to attack Labour, his attempt to create a ‘wedge’ issue only served to expose the wedge on private schools within the Conservative Party.
Archie Bland and Nimo Omer take you through the most popular stories and what they mean, free every weekday morning
Privacy Notice: Newsletters may contain information about charities, online advertisements and content funded by external parties. For more information, see our Privacy Policy. We use Google reCaptcha to secure our website and Google’s Privacy Policy and Terms of Service apply.
“He could end up on the right side of the voters for once if he actually delivers on the manifesto promise and gets rid of these unjustified tax cuts.”
The Daily Mail reported that Labour’s plan to charge VAT on school fees could mean the forced closure of around 200 schools.
Number 10 backed keeping the exemption, saying: “Independent schools play an important role in providing extra opportunities for children across the country through targeted bursaries and by working with local state schools to share experience, best practice and facilities.
“Because of the important educational service they provide, they are exempt from VAT.”
Add Comment