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UK Ends Private School VAT Exemption, Expected to Raise £1.5 Billion for State Education, Affecting 35,000 Pupils with £1.7 Billion Boost

Dec 29, 2024, 11:10 AM

The UK government is set to end the 20% VAT exemption on private school fees starting January 1, 2025, a move expected to raise £1.5 billion annually. This revenue will be directed towards enhancing state education, including funding for 6,500 new teachers, as stated by Chancellor Rachel Reeves. Education Secretary Bridget Phillipson has claimed that middle-class parents support this initiative, arguing that it will allow for better investment in state schools, where currently 94% of children are educated. However, critics argue that this policy could lead to an influx of 35,000 students from private to state schools, potentially overwhelming the system and resulting in larger class sizes and teacher shortages. The Labour Party's decision has been described by some as an ideological attack on private education, with accusations of class warfare against families who have made sacrifices to afford private schooling. The Labour government has pledged that every penny raised from this tax will be used to improve state schools, but there are concerns about the broader implications for educational quality and access.