The advent of the new year brings with it a fresh sting: the introduction of 20 per cent VAT on private school fees. Labour repeatedly argued that the move is necessary to improve standards in the state sector. But this week the Telegraph revealed that the Treasury has made no plans to ringfence the funds – meaning they can theoretically be spent on any number of government initiatives. The paper quoted a Treasury source who said:
The money is not directly hypothecated in the same way other taxes are. The physical pounds and pence are not directly ringfenced [for state schools]… It’s not physically funnelled from ‘A’ to ‘B’ but in value terms the principal is still there.
So for old times’ sake Mr S thought he’d list some of the occasions when Labour promised that the sums raised from the VAT raid would directly help those in the state sector.
Rachel Reeves, December 2024
Just last week, the Chancellor was interviewed
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