The VAT on private school fees is projected to contribute £460m in 2024/25, escalating to £1.7bn by 2029/30, a minuscule response to a £50bn financial gap. Small businesses currently evade £28.1bn annually in tax, highlighting larger tax compliance issues. Those paying for private tuition often do so out of necessity due to inadequate public schooling. The policy claims to target wealthy families, while evidence shows that lower-income families also enroll in private education, risking affordability.
Government figures suggested that VAT on private school fees would raise an extra £460m in the 2024/25 financial year, rising to £1.7bn by 2029/30, which is nothing compared to the £50bn that is needed.
£28.1bn per year is currently lost to the Exchequer as a result of small businesses failing to pay the correct amount of tax.
The Chancellor, Rachel Reeves, stated that the policy would target the wealthiest families in Britain, but this doesn't reflect the facts.
The less well-off will struggle the most. Many of them already make significant sacrifices to send their children to private school, sometimes because the state schools available to them are inadequate.
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