Chancellor Rachel Reeves announced the end of tax breaks for private schools in 2025, with VAT being added to education and boarding fees. This move aims to provide a significant funding boost to state schools, where the majority of children are educated. The government expects to raise £1.5 billion in 2025-26, rising to £1.7 billion annually by 2029/30.
Tax breaks for private schools will end in 2025 to enable better investment in state education, the Chancellor Rachel Reeves confirmed today .
The Chancellor said the core schools budget would increase by £2.3 billion next year as a result, with the VAT change raising £1.5, rising to £1.7 billion a year by 2029/30. "That means more teachers. Higher standards. And the best chance in life for all our children as we deliver on our Plan for Change."The Government said that as part of the plan, it was committed to hiring 6,500 new teachers, driving up standards and improving the Special Educational Needs and Disabilities system .
"Our ambitious Plan for Change sets out our clear mission to break the link between background and success and ending the VAT break enjoyed by private schools will provide much needed investment in our state schools, to help recruit and retain expert teachers."
EDUCATION FUNDING STATE SCHOOLS PRIVATE SCHOOLS VAT TAX BREAKS
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