The following letter was published in The Daily Telegraph on 16 June in slightly edited form.
SIR – At the spending review, Rachel Reeves boasted proudly that she had ended “the tax loophole which exempted private schools from VAT”, a grossly misleading description of the tax exemption that those independent schools which are charities had always enjoyed. She and her party believe they can squeeze £1.5 billion out of independent schools every year. This is sheer fantasy. The unprecedented education tax is forcing families to take their children out of independent schools in far larger numbers than the Government predicted, sharply reducing their ill-gotten gains.
Yet the Labour manifesto last year said that their tax raid on independent schools would pay for 6,500 new expert teachers; increased teacher and headteacher training; work experience and careers advice for all young people; early language development in primary schools; reform of Ofsted; more than 3,000 new nurseries; mental health support for every school; and Young Futures Hubs.
After the spending review, the Prime Miinister tweeted about another boon made possible by the decision to apply VAT to fees: “Today, because of that choice, we have announced the largest investment in affordable housing in a generation.” All this from an imaginary £1.5 billion a year. Has there ever been a more fruitful magic money tree?
Lord Lexden
President, Independent Schools Association
London SW1
