Labour has confirmed it will change the way private school fees are taxed if it wins the election.
Sir Keir Starmer has said some children with special education needs will be exempt from his plans to add tax to private school fees if Labour wins the general election.
Private schools do not have to charge value added tax on their fees because of a legal exemption for organisations providing education. They have more freedom than government-funded state schools, so do not have to follow the national curriculum, for example.pledges to end private schools' VAT exemption and business rate relief. It does not say it will remove their charitable status.That could allow a 2% increase in state school spending in England.
The IFS suggests that private schools' VAT rate would be closer to 15%, because they will still be able to deduct the VAT they pay when buying goods and services.It is likely that private school attendance would fall as a result of the change, but it is difficult to know by how much. The Independent Schools Council , which represents more than 1,400 private schools, believes the policy may see the closure of smaller institutions, which "operate on tight margins".Sir Keir Starmer and shadow education secretary Bridget Phillipson have both denied the policy would increase class sizes in state schools, after the party's shadow attorney general Emily Thornberry suggested that could be necessary in the short-term.
Teaching unions have already warned of a crisis in teacher recruitment and retention, driven by concerns over pay and workload.
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