Politics

Make cutbacks like everyone else, Phillipson tells private schools

Shadow minister suggests independent schools 'reflect on where they can make savings' to shield parents from VAT hike

Shadow minister suggests independent schools 'reflect on where they can make savings' to shield parents from VAT hike

Private schools should “reflect on where they could be making savings” so they can cover Labour’s proposed VAT on their fees for parents, Bridget Phillipson has said.

The shadow education secretary also revealed that Ofsted reform and moves to ensure a “broad and balanced” curriculum would be among her first priorities in the role of education secretary.

It emerged yesterday that Labour has scrapped plans to remove charitable status from private schools, but will still charge them VAT at 20 per cent and end business rates relief.

Phillipson was quizzed about her plans on a Mumsnet webinar this morning.

She said private schools “are not required to pass on VAT to parents and I think could choose to make different choices themselves about how they offer different kinds of provision”.

Although VAT-registered organisations must charge VAT on the goods and services they sell, Labour clarified that Phillipson was suggesting that fees could be reduced so charging VAT did not result in a net increase.

“Everyone in recent years, has had to make cutbacks,” said Phillipson. “Many of the people that are taking part in this discussion will be facing difficult choices every day about what they can and can’t afford the middle of a cost of living crisis.

“And I think private schools are no different. And perhaps they should reflect on where they could be making savings too.”

‘VAT is a tax on parents’

But Julie Robinson, chief executive of the Independent Schools Council, said VAT was “a tax on parents: schools would be legally required to put VAT on their fees under Labour’s policy”.

Julie Robinson
Julie Robinson

While schools will continue to work hard to keep fees affordable for parents, unfortunately, the result of Labour’s tax on children’s education means that many schools will be forced to increase fees despite their best efforts.

“Each school will make their own decision on fee levels, based on their parent base, school finances and other factors such as ensuring pay rises for teachers.”

Asked about confusion over the policy and yesterday’s change, Phillipson said she had “always been focused on how we end the tax breaks and how we then use that money to deliver high standards in our state schools”.

“And ending charitable status was not a necessary part of doing that. We can press ahead with ending the tax breaks relatively quickly, and then put that money into delivering better outcomes for children. So the policy is unchanged in that regard.”

‘Ample space’ in state sector

Critics of the policy have warned it could lead to an exodus of private school pupils into the state sector.

The government has previously used a figure of 90,000, which is from 2018 research commissioned by the Independent Schools Council. But the Institute for Fiscal Studies estimated up to 7 per cent of pupils could leave, working out at around 41,000.

Phillipson also pointed to a “demographic shift across our schools”. Pupil numbers are due to fall by 12 per cent over the next decade.

That means “we’re in a position now where…schools are reducing their rolls or taking out classes or in some cases, schools are closing because that demographic change that we had earlier on around the turn of the century is now is now kind of feeding through”.

“So there is ample space.”

Ofsted and curriculum reform a priority

Labour has set out a raft of education policies alongside its plans for private schools.

Phillipson indicated this morning that plans to reform Ofsted by replacing graded judgments with report cards on schools’ strength and weaknesses and an annual safeguarding audit, and reform to the curriculum would be among her priorities in government.

She said there would be “tough choices because the economy’s in a total mess, that we haven’t seen growth in any meaningful way for years and years now”.

“And that will mean it will take us time to deliver everything that we would want to do and we won’t be able to do all of those changes from day one.”

But she said in education there was “actually quite a lot I believe we could change that isn’t just about spending more money”.

“Whether that’s reform of Ofsted as one example, some of the wider changes around curriculum I want to see in our schools, all children having access to a broad and balanced curriculum that includes music and sport and much more besides.

“So where we’ve got plans to spend money, we’re clear about how we’re going to fund it. but alongside that, I believe there’s a lot of change that we could make very quickly if we won the trust of the British people and formed that next government.”

Latest education roles from

IT Technician

IT Technician

Harris Academy Morden

Teacher of Geography

Teacher of Geography

Harris Academy Orpington

Lecturer/Assessor in Electrical

Lecturer/Assessor in Electrical

South Gloucestershire and Stroud College

Director of Management Information Systems (MIS)

Director of Management Information Systems (MIS)

South Gloucestershire and Stroud College

Exams Assistant

Exams Assistant

Richmond and Hillcroft Adult & Community College

Lecturer Electrical Installation

Lecturer Electrical Installation

Solihull College and University Centre

Sponsored posts

Sponsored post

Turbo boost your pupil outcomes with Teach First

Finding new teaching talent for your school can be time consuming and costly. Especially when you want to be...

SWAdvertorial
Sponsored post

Inspiring Leadership Conference 2025: Invaluable Insights, Professional Learning Opportunities & A Supportive Community

This June, the Inspiring Leadership Conference enters its eleventh year and to mark the occasion the conference not only...

SWAdvertorial
Sponsored post

Catch Up® Literacy and Catch Up® Numeracy are evidence-based interventions which are highly adaptable to meet the specific needs of SEND / ALN learners

Catch Up® is a not-for-profit charity working to address literacy and numeracy difficulties that contribute to underachievement. They offer...

SWAdvertorial
Sponsored post

It’s Education’s Time to Shine: Celebrate your Education Community in 2025!

The deadline is approaching to nominate a colleague, team, whole school or college for the 2025 Pearson National Teaching...

SWAdvertorial

More from this theme

Politics

7 key facts about Oli de Botton, Labour’s new education adviser

The careers education and oracy enthusiast has been appointed to advise Sir Keir Starmer - so here's what you...

Lydia Chantler-Hicks
Politics

Revealed: The forgotten schools policies

'Well overdue' fire safety guidance update among seven missing government consultation responses

Freddie Whittaker
Politics

Schools told to provide breakfasts for ‘half the price of a Greggs sausage roll’ – ASCL president

Headteacher will take aim at education secretary for 'smorgasbord of policies' but lack of 'vision'

Freddie Whittaker
Politics

‘School profile’ plans revealed amid ‘new era on standards’

'Significantly strengthened' accountability will also 'raise the bar on what we expect from schools', Phillipson to say

Freddie Whittaker

Your thoughts

Leave a Reply

Your email address will not be published. Required fields are marked *