Labour to Impose Immediate Tax on Private School Fees, Says Starmer

Labour to Impose Immediate Tax on Private School Fees, Says Starmer

24 May    Finance News, News

Labour leader Sir Keir Starmer has declared that a Labour government would swiftly implement taxes on private school fees.

Speaking on BBC Radio 4’s Today programme, Starmer confirmed that the VAT exemption currently enjoyed by private schools would be removed “as soon as it can be done,” resulting in a 20% increase in fees.

The VAT exemption, which independent schools benefit from due to their classification under the supply of education, allows them to avoid charging VAT on their fees. Labour’s proposal aims to redirect this financial advantage to better support state education.

Starmer emphasized the urgency of this policy, stating, “Obviously, there will have to be financial statements etc. It is a question of the timetable in parliament. But these first steps are intended to be done straight away.”

The removal of the VAT exemption is part of Labour’s broader strategy to address inequalities in education funding and ensure that public resources are more equitably distributed. The immediate implementation of this tax highlights Labour’s commitment to reforming the education sector and investing in state schools.

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