UK tax raid on private schools threatens closures and jobs
Source: ft.com
- The UK government plans to add 20% VAT to private school fees starting in January 2025.
- Private schools warn this will force many closures and 90,000 job losses over five years.
- Parents face fee hikes of up to 10-20%, pushing some towards state schools.
The UK Labour government is set to impose VAT on private school fees for the first time, ending an exemption that has lasted decades. Schools and parents argue it will make education unaffordable for middle-class families and damage the sector. The policy aims to raise billions for state education but risks unintended fallout.