Starmer’s private school tax is a terrible, vote-losing idea

Today Labour have confirmed that they will impose VAT on private schools in its first year of power if it wins the next general election, rather than phasing in new charges over several academic years.

In order to improve state education, Labour needs to raise money from somewhere, and private schools are an easy ideological target. The problem is that no one is exactly sure how much money the VAT will actually raise: Keir Starmer has estimated £1.7 billion, but schools will be able to offset certain costs against the VAT (for example, utility bills and building projects). 

Inevitably, some parents will also pull their children out of the private sector, although, again, no one knows exactly how many: a survey by the Independent Schools Council found that 20 per cent of parents reported they would ‘definitely’ withdraw their children from private schools. More conservative estimates hover around 3 to 7 per cent, but this would still mean an extra £100-300 million of funding needed annually to accommodate these extra pupils.