Labour leader Sir Keir Starmer said it was wrong for shadow attorney general Emily Thornberry to suggest that Labour's plan to add VAT to private school fees would lead to larger class sizes in the state sector.
Rachel Reeves ' VAT raid on private schools will send an additional 35,000 children into state education, the government's own economic watchdog said today.
Critics of the plan have argued that the change is coming in too fast and could force some schools to close as parents pull their children out due to higher fees. Critics of the plan have argued that the change is coming in too fast and could force some schools to close as parents pull their children out due to higher fees
Currently, independent schools do not have to charge 20 per cent VAT on their fees because there is an exemption for the supply of education. 'I can confirm today that they will in fact raise over £9billion to support our public services and restore our public finances.But the OBR noted: 'We assume that the elasticity will be lower for existing students, as parents will be more reluctant to disrupt their education, than for prospective future new students.
'The actual additional cost to the Government would depend on a wider set of factors. These include overall trends in total pupil numbers and the ability of state schools to absorb additional pupils from the private sector, which is likely to vary across regions. She said that only the small minority of special needs children with a formal education health and care plan statement would be spared the hike.
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