UK to tax private schools in o1.5 bn boost to public education

In an effort to earn more than o1.5 billion ($1.9 billion) for public education, the center-left Labour administration of the United Kingdom stated Wednesday that it will eliminate the tax exemption for private schools.

The 20 percent value added tax on tuition fees that private schools must pay starting on January 1 will be used to pay for thousands of new instructors and raise standards in state schools, following years of growing educational disparities.

“It’s time things are done differently”, finance minister Rachel Reeves said in a statement on Sunday.

According to her, the money will “go towards our state schools where 94 percent of this country’s children are educated”.

Labour made a commitment to the program during the election campaign, and it was formally announced in its first budget in October.

In order to finance 6,500 new public school teachers, it anticipates that the move will generate o1.5 billion for the 2025–2026 academic year and o1.7 billion annually by 2029–2030.

The Independent Schools Council, which advocates for private schools, claims that the average annual tuition for private schools is already $18,000.

That figure is set to rise, with the government estimating that tuition fees will increase by around 10 percent, with schools taking on part of the additional cost.

“High and rising standards cannot just be for families who can afford them,” said education secretary Bridget Phillipson.

Opponents of the reform claim that if the private sector is eliminated, state school enrollment will skyrocket, increasing the government’s expenses. However, research shows otherwise.

According to the Institute for Fiscal Studies, a predicted population reduction will actually result in fewer students attending public schools by 2030.

Additionally, a number of research centers note that throughout the 14 years of Conservative government, the gap between private and public schools grew significantly.

With pledges to increase economic development and enhance public services, the Labour government won a landslide election in July.