What has Labour got planned?
If elected, as now seems likely, Labour is committed to removing the VAT exemption on private-school fees, meaning that (other things being equal) fees will rise by 20%. By charging VAT but letting schools retain charitable status, those institutions will still retain some tax benefits. These include gift aid on donations, VAT relief on products and services, and exemptions from stamp duty, capital-gains and corporation tax. Average school fees across the UK in the last academic year (2022-2023) were £15,200, net of bursaries and scholarships, so adding VAT will mean parents stumping up an extra £3,000 or so.
