In a move that piles significant pressure onto Sir Keir Starmer's front bench, prominent billionaire and Labour Party donor Gary Lubner has publicly thrown his weight behind a radical campaign to abolish the charitable status of private schools.
The controversial tax break, which grants independent institutions substantial financial advantages, has long been a point of political contention. Lubner, the former boss of automotive giant Autoglass, argues the current system effectively uses public money to subsidise educational privilege for the wealthy few.
'It is a public subsidy for a very, very small number of people, and it's not right,' Lubner stated unequivocally. His comments align with the ongoing campaign by the Bad Law Project, which is preparing legal action to challenge the status quo.
Billions in Subsidies Under Scrutiny
The core of the issue lies in the estimated £1.7 billion in annual tax reliefs that private schools benefit from due to their classification as charities. This includes exemptions from business rates and VAT, as well as lucrative gift aid on donations.
Campaigners and now high-profile donors like Lubner contend that this financial cushion worsens the divide between the state and private sectors, ultimately harming the education of the vast majority of British children.
A Political Hot Potato for Starmer
While the Labour leadership has previously pledged to remove the VAT exemption for private school fees, Lubner's intervention demands a far more comprehensive approach. He is advocating for the complete removal of charitable status, a move that would fundamentally reshape the financial landscape for institutions like Eton and Harrow.
This public call from a major financial backer signals a growing impatience within parts of the party's support base for more transformative and ambitious policies. It places Starmer in a delicate position, balancing a desire for fiscal responsibility with the demands of his core supporters for bold, egalitarian reforms.
The debate is set to intensify, with the potential legal challenge adding a new layer of urgency to a conversation that strikes at the heart of class and opportunity in modern Britain.
