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Government to Impose VAT on Private School Fees

The Labour government will remove the VAT exemption on private school fees to fund 6,500 new teachers in England. Private schools educate about 7% of UK pupils and the new policy aims to support state school funding. Some private school closures and fee increases are expected, but the overall impact on state schools remains debated.
The Labour government confirms it will remove the VAT exemption on private school fees, funding 6,500 new teachers in England.

Private schools, with an average fee of £15,000 annually, currently educate about 7% of UK pupils, including 570,000 in England.

The plan will also end business rate reliefs for private schools.

The policy, expected to earn £1.6bn annually, aims to support state school funding.

VAT removal applies UK-wide, but spending decisions are devolved.

Children with education health care plans in private schools will be exempt from the VAT increase.

Private schools' fees may rise, potentially reducing attendance by 3-7%.

While private school closures and fewer bursaries are concerns, the impact on state schools remains debated due to projected student number declines.
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