The lavish private schools in Britain, such as Eton College, may face a financial hurdle if the opposition Labour Party wins the upcoming general election and eliminates a 20% tax break on their fees. This move could potentially cost parents an additional £10,500 ($13,360) per year on top of existing fees. Labour argues that the tax on private schools could generate £1.5 billion ($1.9 billion) annually to improve the state school system.
The proposal has received support from almost two-thirds of respondents in a recent poll. However, private schools are concerned about the potential financial impact, which could lead to some children from modest backgrounds switching to state schools. Sue Hannam, headteacher at Lichfield Cathedral School, highlighted that not all private schools cater to the wealthy elite, with many parents already struggling to afford tuition fees.
Labour’s manifesto outlines plans to recruit 6,500 new teachers for state schools and provide students with access to mental health professionals. The Education Policy Institute anticipates that the VAT levy may be transferred to parents, ultimately affecting enrollment in private schools. The Independent Schools Council reported a 2.7% decline in new students, the largest drop in years.
Single mother Loveena Tandon expressed concerns about potentially having to move her children from private schools in London due to the increased costs. Chief executive of the ISC, Julie Robinson, fears that thousands of children may be displaced if the tax policy is implemented. However, some experts believe that the impact on private school enrollment and state schools may be minimal, as the demand for private education has remained steady despite rising fees.
It is clear that the potential tax changes could have significant implications for the private school sector and the overall education landscape in Britain.
