Labour’s VAT Policy Could Force 100 Private Schools to Close, Labour Minister Admits

[Social Media]

 

Around 100 private schools could be forced to shut their doors due to Labour’s controversial decision to impose a 20 per cent VAT levy on independent school fees, a government minister has admitted. This marks the first time a minister has publicly acknowledged that the tax increase will lead to school closures, contradicting earlier claims that the impact would be minimal.

 

Previously, government officials had insisted they were not expecting the collapse of private schools as a result of the policy and had been accused of downplaying the number of pupils who would be affected. However, Treasury Minister Torsten Bell has now put a figure on the potential closures, revealing that around 100 schools are expected to shut within the next three years.

 

Since January, a dozen schools have already either closed or announced plans to shut, citing the VAT hike as a key factor. The Independent Schools Council (ISC) welcomed Mr Bell’s admission but argued that the government was still underestimating the impact of the policy. The Independent Schools Bursars Association has projected that as many as 286 private schools—approximately 11 per cent of Britain’s 2,600 independent institutions—could be at risk of closure.

 

The introduction of VAT on private school fees at the beginning of the year has already placed financial strain on schools, and from next month, the removal of the business rates exemption for independent schools will add further pressure. Speaking during a debate on independent schools in Westminster Hall, Mr Bell suggested that the government anticipates a 60 per cent increase in the annual closure rate of private schools.

 

If 100 schools were to shut, ISC analysis suggests that approximately 40,000 pupils would be displaced, and 11,000 jobs would be lost. Julie Robinson, CEO of the ISC, criticised the government’s handling of the situation, saying, “It is frustrating to discover the Government has been planning in private for what it rejected in public. The loss of any independent school has a huge impact: for local employment, businesses and, most importantly, families. This tax on education will not raise money, not benefit state schools and not improve outcomes for children.”

 

Based on a report by Daily Mail  2025-03-11

 

Related Topics:

Father Fights Back as Son Forced Out of Private School Due to Labour’s Tax Hike

Private Schools Struggle as Labour’s VAT Policy Triggers Closures

State Schools Face Capacity Crisis Amid Labour’s Private School Tax Hike

Legal Challenge Against Private School VAT Policy Deems It Discriminatory

Looming Crisis: Private Schools Face Closures Amid VAT Hike

 

 

 

[Zaphod Priest]

Usual right wing drivel from the Mail.  No attempt to put things in context.

"Figures for 2024 show 46 private schools have closed with 77 opening."

"More than 75 private schools closed every year in England on average over the last decade, official data has shown, with no apparent increase in the trend since Labour announced it was imposing VAT on fees."

https://www.theguardian.com/education/2024/oct/26/no-rise-private-school-closures-england-since-labour-vat-proposal-data

[JonnyF]

Yep, more pressure on the state schools. More disruption for children's education.

 

All because of Labour's spite towards those they consider rich/successful.

 

The politics of envy.  

[Bkk Brian]

31 minutes ago, Zaphod Priest said:

Usual right wing drivel from the Mail.  No attempt to put things in context.

"Figures for 2024 show 46 private schools have closed with 77 opening."

"More than 75 private schools closed every year in England on average over the last decade, official data has shown, with no apparent increase in the trend since Labour announced it was imposing VAT on fees."

https://www.theguardian.com/education/2024/oct/26/no-rise-private-school-closures-england-since-labour-vat-proposal-data

Figures from the Labour Treasury Minister Torsten Bell are right wing drivel?

 

1 hour ago, Social Media said:

Previously, government officials had insisted they were not expecting the collapse of private schools as a result of the policy and had been accused of downplaying the number of pupils who would be affected. However, Treasury Minister Torsten Bell has now put a figure on the potential closures, revealing that around 100 schools are expected to shut within the next three years.

 

[Purdey]

Either run them efficiently or close. Most schools are run well. 

[JonnyF]

3 hours ago, Purdey said:

Either run them efficiently or close. Most schools are run well. 

 

It doesn't matter how well they are run if the customers cannot afford to pay the fees due to government taxation. 

[Gsxrnz]

Regardless of the reason for taxation on any activity, few people consider the true outcome of mathematics and how much of their production is being confiscated by the government.

 

If you earn 30k (dollars, pounds, baht - doesn't matter) and are taxed at source say a net 25%, you are left with 22,500.  Then assuming you spend all of the remainder, they hit you with 20% VAT, that's 4,500.  The combined tax bill on your 30K income is 12,000.  That's an effective tax rate of 40%.

 

That means you're working Monday and Tuesday JUST so the government can steal it from you. It would almost be tolerable if the government got real value for everything they took for you, I mean I'm all in favor of a socialist utopia where everything is free and nobody suffers - but effectively they get $1 value for every $10 they waste spend.

 

Long live the revolution counter-revolution. 

 

 

[JonnyF]

8 minutes ago, Gsxrnz said:

Regardless of the reason for taxation on any activity, few people consider the true outcome of mathematics and how much of their production is being confiscated by the government.

 

If you earn 30k (dollars, pounds, baht - doesn't matter) and are taxed at source say a net 25%, you are left with 22,500.  Then assuming you spend all of the remainder, they hit you with 20% VAT, that's 4,500.  The combined tax bill on your 30K income is 12,000.  That's an effective tax rate of 40%.

 

That means you're working Monday and Tuesday JUST so the government can steal it from you. It would almost be tolerable if the government got real value for everything they took for you, I mean I'm all in favor of a socialist utopia where everything is free and nobody suffers - but effectively they get $1 value for every $10 they waste spend.

 

Long live the revolution counter-revolution. 

 

 

 

It's even worse if you dare to work hard and earn decent money. Up to 45% tax on your earnings. Then if you fill your car up with petrol to get to and from that job with what's left, you pay nearly 50% of what's remaining in tax again.

 

So the government has stolen about 2/3 of your money. 😄 

 

Then they give it away to corrupt dictators of 3rd world countries in "Climate Aid" and label you far right if you dare to object. 

 

 

[Chomper Higgot]

6 hours ago, JonnyF said:

Yep, more pressure on the state schools. More disruption for children's education.

 

All because of Labour's spite towards those they consider rich/successful.

 

The politics of envy.  

Except there isn’t the exodus the rightwing has been claiming would be inevitable:

 

https://www.theguardian.com/education/2025/mar/10/no-exodus-to-state-sector-after-vat-added-to-private-school-fees-say-english-councils

[Bkk Brian]

3 minutes ago, Chomper Higgot said:

Except there isn’t the exodus the rightwing has been claiming would be inevitable:

 

https://www.theguardian.com/education/2025/mar/10/no-exodus-to-state-sector-after-vat-added-to-private-school-fees-say-english-councils

The OP is about Labour predictions and there's plenty of evidence of parents removing their children

 

8 hours ago, Social Media said:

Related Topics:

Father Fights Back as Son Forced Out of Private School Due to Labour’s Tax Hike

Private Schools Struggle as Labour’s VAT Policy Triggers Closures

State Schools Face Capacity Crisis Amid Labour’s Private School Tax Hike

Legal Challenge Against Private School VAT Policy Deems It Discriminatory

Looming Crisis: Private Schools Face Closures Amid VAT Hike

 

[Chomper Higgot]

50 minutes ago, Gsxrnz said:

Regardless of the reason for taxation on any activity, few people consider the true outcome of mathematics and how much of their production is being confiscated by the government.

 

If you earn 30k (dollars, pounds, baht - doesn't matter) and are taxed at source say a net 25%, you are left with 22,500.  Then assuming you spend all of the remainder, they hit you with 20% VAT, that's 4,500.  The combined tax bill on your 30K income is 12,000.  That's an effective tax rate of 40%.

 

That means you're working Monday and Tuesday JUST so the government can steal it from you. It would almost be tolerable if the government got real value for everything they took for you, I mean I'm all in favor of a socialist utopia where everything is free and nobody suffers - but effectively they get $1 value for every $10 they waste spend.

 

Long live the revolution counter-revolution. 

 

 

Except there’s the matter of tax free allowance and no VAT on the big ticket items for people on incomes of 30K: food, most rents, mortgages.

 

You might want to go easy on teaching math.

 

[JonnyF]

4 minutes ago, Chomper Higgot said:

Except there isn’t the exodus the rightwing has been claiming would be inevitable:

 

https://www.theguardian.com/education/2025/mar/10/no-exodus-to-state-sector-after-vat-added-to-private-school-fees-say-english-councils

 

Obviously most parents wouldn't remove a child from school in the middle of an academic school year when they've already committed to paying the fees. It's disruptive for the child and it's not easy to find a place in a state school in such circumstances. It disrupts their progress through that school's curriculum. They may have their GCSE's in a couple of months.   

 

Let's see how many enroll for the next academic year. And the year after that. 

[Chomper Higgot]

8 minutes ago, JonnyF said:

 

Obviously most parents wouldn't remove a child from school in the middle of an academic school year when they've already committed to paying the fees. It's disruptive for the child and it's not easy to find a place in a state school in such circumstances. It disrupts their progress through that school's curriculum. They may have their GCSE's in a couple of months.   

 

Let's see how many enroll for the next academic year. And the year after that. 

Which omits some facts about application for school places.

 

The window for application is September through October of the year preceding the school year when a placement is sought.

 

The announcement of the removal of the VAT exemption flaws made on July 6.

 

Plenty of time for parents to submit their applications in September through October for this coming year’s placements.

 

““For September 2025, 664 on-time applications were received from Surrey residents with children in the independent sector, compared with 608 for September 2024, a rise of 56.”

 

Refer link I provided above.

[Bkk Brian]

1 minute ago, Chomper Higgot said:

Which omits some facts about application for school places.

 

The window for application is September through October of the year preceding the school year when a placement is sought.

 

The announcement of the removal of the VAT exemption flaws made on July 6.

 

Plenty of time for parents to submit their applications in September through October for this coming year’s placements.

 

““For September 2025, 664 on-time applications were received from Surrey residents with children in the independent sector, compared with 608 for September 2024, a rise of 56.”

 

Refer link I provided above.

Bit of a problem if all the state schools are full in the year groups required in their catchment areas

[JonnyF]

15 minutes ago, Chomper Higgot said:

Which omits some facts about application for school places.

 

The window for application is September through October of the year preceding the school year when a placement is sought.

 

The announcement of the removal of the VAT exemption flaws made on July 6.

 

Plenty of time for parents to submit their applications in September through October for this coming year’s placements.

 

““For September 2025, 664 on-time applications were received from Surrey residents with children in the independent sector, compared with 608 for September 2024, a rise of 56.”

 

Refer link I provided above.

 

Applying is easy.

 

Paying the school fees is not.

 

It's quite wise to apply in case you simply can't get a place at a state school. Which is quite likely. Or if Labour see the error of their ways and reverse the nasty spiteful decision. Which is quite unlikely. It's a backup plan. I'd apply as well if I were them. 

 

Let's see how many actually enroll. 

[tomazbodner]

 

[Chomper Higgot]

27 minutes ago, JonnyF said:

 

Applying is easy.

 

Paying the school fees is not.

 

It's quite wise to apply in case you simply can't get a place at a state school. Which is quite likely. Or if Labour see the error of their ways and reverse the nasty spiteful decision. Which is quite unlikely. It's a backup plan. I'd apply as well if I were them. 

 

Let's see how many actually enroll. 

Jonny, the applications I referred to are for state schools.

 

Applying is indeed easy, there is no payment.

Plenty of places at State Schools:

 

From the link I provided:

 

“In London the number of families receiving their first preference of secondary school place rose by one percentage point compared with 2024, to 71.6%”

 

[Bkk Brian]

23 minutes ago, Chomper Higgot said:

Jonny, the applications I referred to are for state schools.

 

Applying is indeed easy, there is no payment.

Plenty of places at State Schools:

 

From the link I provided:

 

“In London the number of families receiving their first preference of secondary school place rose by one percentage point compared with 2024, to 71.6%”

 

Not true, like I said previously some state school year groups are full

 

"Meanwhile, concerns are growing about the strain the VAT policy will place on the state education system. A recent study found that state schools across 27 local authorities in England are already oversubscribed in some year groups, particularly Years 7 and 8. Councils in areas such as Bristol, Hull, Coventry, Rutland, and South Gloucestershire reportedly have no available places in certain age groups. "

 

Links already provided