Labour’s January introduction of VAT on private school fees has caused widespread concern among parents and independent schools, predicting inevitable closures due to the unexpected timing.

Parents have expressed shock and dismay over the Chancellor’s decision to impose VAT on private school tuition fees from January, mid-academic year. Monday’s announcement by Rachel Reeves regarding school fees led to “absolute panic,” with parents labelling the decision “heartless.”

The Independent Schools Council (ISC) warned that the future of some of its member institutions is at risk, with closures deemed “inevitable.”

Loveena Tandon, a west London filmmaker with children in private education, voiced feelings of betrayal among parents. Initially, the VAT policy was expected to be enforced from September next year, providing time for families to adjust. However, the sudden change to January has left many in a difficult position. Tandon, representing the group Education Not Taxation, considered relocating her son to India to avoid the fee hike but faced resistance from him and contemplated remortgaging her house.

“There’s a lot of escalated anxiety,” Tandon said. “I think it’s really heartless to make education more and more elite.”

Reeves criticised the focus on private school students, stating that funds raised would support state schools. She emphasised her interest in the 93% of children attending state schools, often in poor conditions with underqualified teachers.

The ISC, representing 1,300 private schools, expressed concern about the impact on smaller institutions, including faith, arts, and special educational needs (SEND) schools. ISC spokesperson Sarah Cunnane highlighted the lack of clarity for military families benefiting from the Continuity of Education Allowance (CEA), noting significant concerns about the policy’s broader implications.

Cunnane acknowledged the disappointment among parents over the early VAT implementation, stating, “A lot of parents feel like they’ve had the rug pulled from under them unexpectedly.”

The Conservatives accused Labour of engaging in a “class war,” with shadow education secretary Damian Hinds criticising the policy for disrupting children’s education mid-year and demanding Labour clarify how it would protect state schools and families from the tax’s repercussions.

The Treasury defended the policy, stating, “Ending tax breaks on private schools will help to raise the revenue needed to fund our education priorities for next year, such as recruiting 6,500 new teachers.”

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Private school closures expected as VAT charge implemented early