Bridget Phillipson’s claim that VAT on independent school fees has not caused significant damage is inaccurate and indefensible. In her Guardian article today, the Education Secretary points to the absence of a dramatic surge in state school admissions as evidence that critics were wrong.
But that was never the real test of the policy. The real questions are whether families have been forced out of schools they chose, whether schools over time have then become financially unviable, whether jobs have then been lost, and whether educational choice has been reduced.
Despite her assertions to the contrary, the evidence suggests the answer is clearly yes.
Labour presented VAT on school fees as a tax on the wealthy. In reality, it has become a tax on aspiration. Thousands of families who already paid tax on this income to support the state education system have been hit with fee increases of around 20 per cent, adding thousands of pounds a year to the cost of educating their children.
These are not just affluent households, but often small business owners, NHS staff, teachers, police officers, military families and professionals making significant personal sacrifices because they believe a particular school is right for their child.
The Government’s focus on admissions data distracts from what is happening across the independent sector.
Imposing VAT on school fees was one of the most vindictive tax rises of this Government.
105 independent schools, now forced to charge VAT, have closed- all specifically citing VAT as a contributing factor- with more schools closing than opening. and 33,000 pupils have left.
These closures have real consequences. Schools are major local employers and every closure means lost teaching, support and administrative jobs, disruption for pupils and families, emotional upheaval for parents and children alike, and the loss of valuable community assets. Based on pupil losses and school restructuring, several thousand jobs are estimated to have been lost or placed at risk across the sector.
Nor is the impact confined to independent schools. Many of the pupils leaving the sector are ultimately entering state schools, creating additional pressures on local authorities and taxpayers. This raises serious questions about whether the Treasury will achieve the revenues originally promised. Every pupil who leaves the independent sector reduces VAT receipts, while every pupil entering the state system increases public expenditure.
Most importantly, the human cost is being ignored. Behind the statistics are parents who have worked longer hours, sacrificed holidays, delayed moving house and made difficult financial decisions to give their children what they believe is the best education. Many are now being forced to withdraw children from schools they love or face increased significant financial hardship to remain.
Far from proving critics wrong, the evidence increasingly suggests that Labour’s VAT policy is achieving exactly what opponents feared. Schools are closing, jobs are being lost, educational choice is shrinking and aspirational families are paying the price. Bridget Phillipson may want to declare victory, but for thousands of families across the country, this policy is already proving to be a costly mistake.
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