To tax or not to tax? Labour’s plan to impose VAT on private schools seemed a good idea at the time. Its programme was bereft of leftist clout. The tax would hit privilege at its roots, and bring in a windfall £1.6bn to benefit deprived state schools. What was not to like?
The trouble is that every tax carries unintended consequences. Estimates were that most parents would simply pay up. Schools would cut costs, offset VAT-able expenses and boost bursaries. Fees should not rise by more than 15%, which is what they have recently done anyway. The shadow chancellor, Rachel Reeves, has indicated that she will not target parents with children who are at a critical stage of their school careers. The new tax will be gradual.
