Westminster, (Parliament Politics Magazine) – It is being reported that Labour is stepping up its attacks on the UK’s private schools with plans to raise business ratesalongside proposals to strip them of their charitable status.
In what has been dubbed a “double whammy”, labour leaderSir Keir Starmer, says he wants to scrap the business rate relief on independent schools, currently valued at 80 per cent.
Labour have argued that it will use the money to fund state education, with the Labour Leader highlighting the tax savings made by Winchester school, attended by the Prime Minister Rishi Sunak, compared with struggling state schools just a few miles down the road in the City of Southampton – where Mr Sunak is originally from.
Sir Keir, who attended a Grammar School, used PMQs to make a strong personal attack on Rishi Sunak over tax benefits for private schools, saying the policy of no VAT on private school fees amounted to “trickle-down education”.
Specifically using Winchester as an example, Starmer highlighted a 2017 article by Michael Gove that argued for VAT to be imposed on school fees.
“Winchester College has a rowing club, a rifle club and extensive art collection – they charge over £45,000 a year in fees,” the Labour leader said. “Why did he hand them nearly £6 million of taxpayers’ money this year in what his levelling up secretary calls ‘egregious state support’?”
He added: “If he thinks the route to better education in this country is tax breaks for private schools in the hope they might hand some of that down to state schools – that’s laughable. Trickle-down education is nonsense.”
The Prime Minister, in a rare display of emotion, responded tersely, saying the Labour Leader was, “attacking the hardworking aspiration of millions of people in this country”.
Adding: “He is attacking people like my parents. This is a country that believes in opportunity, not resentment. He doesn’t understand that, and that’s why he’s not fit to lead.”
An analysis by the Private Education Policy Forum, published earlier this year, estimated that ending the charitable status of private schools across England and Wales Would raise as much as 144 million year, in increased tax receipts from business rates. While Labour estimate that forcing private schools to pay VAT would raise around £1.7 billion.
However, critics of the plan, including most number of Conservative MPs have hit back about the proposals saying that up to 200 private schools may be forced to close if labour follow through with its’ “irresponsible” policy, affecting around 26,000 children. They also claimed that a further 64,000 children could be forced back into the state system because their parents would no longer be able to pay the increased fees.
The Prime Minister’s spokesman said: ‘Independent schools have an important role to play in providing further opportunities for children across the country through targeted bursaries and by working with local state schools to share expertise, best practice and facilities.
“It is because of the important educational service they provide that they are exempt from VAT”.
Bridget Phillipson, Labour’s education spokesman, said: ‘Tory ministers parroting the discredited claims of the private school lobby prove that this is a Government too weak to stand up to vested interests.
“Labour would end tax breaks for private schools and invest in thousands more teachers, more mental health support in every school and professional careers advice to ensure young people are ready for work and ready for life.”
However, Julie Robinson, of the Independent Schools Council, said many parents had to struggle to raise the money for fees. Speaking to LBC she said: “Labour are taxing the aspiration of these parents.
“Parents should have the right to choose the right school and the right to spend their money as they wish.”
One Conservative MP, told parliamentnews.co.uk that Labour had gone “too far” by making the issue so personal, adding, “every parent wants the best for their children, and Rishi’s are no different. It was wrong to attack their choice and this was why the PM was so angry”.
The MP added that he expected the “richman” attacks on the PM to continue, saying the Labour Leader still has to appeal to the hard left and Corbynistas in his party who are increased concerned at Starmer ditching all the policies that won him the leadership election.
ENDS
