A billionaire donor to the Labour Party has urged the party to follow through on its pledge to remove tax exemptions for private schools, arguing the policy is essential for fairness and funding state education. The donor, who has not been named, joins a growing debate over Labour's plan to add 20% VAT to private school fees, a policy that has sparked fierce discussion ahead of the 4 July general election.
Labour's policy, which dates back to Jeremy Corbyn's leadership, aims to generate an estimated £1.5bn annually, according to the Institute for Fiscal Studies. The party has pledged to use the funds to hire 6,500 new teachers and provide mental health support staff in state schools. Shadow education secretary Bridget Phillipson dismissed claims of a mass exodus of private school pupils as 'scaremongering' from vested interests.
Critics, including the Daily Mail, have cited a survey suggesting nearly half of private school pupils could leave, potentially overwhelming state schools. However, the IFS predicts a more modest 3-7% reduction in private school numbers. The debate intensified after Alton School, a Catholic day school in Hampshire, announced closure due to declining pupil numbers, which The Telegraph attributed to Labour's planned tax raid.
The Independent Schools Council reported a 2.7% drop in new pupil recruitment since last year, though factors like inflation may also play a role. As polling day approaches, the policy remains a key dividing line between Labour and the Conservatives, with both sides trading claims over its potential impact on education and public finances.
