It is sad to see that Labour’s VAT hike on independent schools is soon to go ahead. The policy will solve nothing yet create many problems fiscally and culturally. There are, however, alternatives Labour could pursue.
Having spent my career so far as a teacher and tutor helping pupils to be the best version of themselves, I have seen the transformative experience British independent schools can offer. The worry though is that rather than support some of Britain’s most established and world-respected institutions for the areas that work well, Labour instead resent them and in turn seek to take these historic beacons of education apart bit by bit. It is for this reason that I suspect this VAT hike is not the end, but instead merely the beginning of this government’s attempt to dismantle the independent school system which, whilst not perfect, still offers a lot of good and admirable things.
The estimated tax revenue from such a policy is heavily disputed, especially given that every pupil that drops out of the independent sector must in turn be funded by the state. Whilst the Institute of Fiscal Studies estimate tax revenue from the policy could be up to £1.5bn, it also states that the cost of each additional pupil to the state system will be an average of £5,900 per year. With this figure in mind, the Adam Smith Institute estimate that if 10-15% of independent school pupils moved across to the state sector, which could indeed happen, it would generate no tax revenue, whilst if 25% were to do the same, the policy could result in a tax loss of £1.58bn. Even if the £1.5bn revenue were to be generated, it would be offset by all number of inevitable costs, such as capital investments required for new state pupils and the potential movement of wealthy families, and the investment they bring to the country, abroad. Given the negligible economic gains this policy could conceivably deliver, the government’s move represents an ideological battle as opposed to a pragmatic one.
Introducing this policy will only harm those who save every penny to prioritise their child’s education in the medium to long term. Lest we forget, parents at independent schools are paying twice as it is, given they cover their school fees and contribute income tax to fund state education which they do not use. The super wealthy will not be affected and easily absorb the ever increasing fees. Meanwhile, the smaller-scale independent schools set up by parents to educate local children that often operate on an exceptionally tight margin will suffer most. The sector will therefore inevitably become even more reserved for the highest earners whilst pricing out the middle class.
In this sense, Labour are tone deaf to what many of these schools continue to offer pupils in the UK and from overseas. In two of the independent schools I worked in, there were regular attempts to share the insight and education beyond the school gates with pupils from local state schools, whether that be the teaching of Latin and Greek to those with an interest in the classics or expert preparation for Oxbridge entry. Encouraging ambition and aspiration is at the core of these schools; an example not just for the few, but the many. The government should be facilitating cooperation between the independent and state sectors for the betterment of society as a point of principle, not destroying the culture out of vindictiveness.
The independent sector is not perfect and will indeed have its part to play in a productive policy. Schools, for example, should focus less on the building of unnecessarily expensive facilities to outcompete one another on a prospectus, as well as drop the time consuming and vacuous politically correct initiatives, and instead facilitate joint ventures with more local state schools. Something the schools I worked in did certainly offer – whether it be overtly in messages as part of assembly or subliminally as part of the schools’ traditions – was an expectation that one should work hard, that aiming for the top was a good thing, that competition should be encouraged as a fundamental principle and pride in one’s school fostered a sense of community. A large part of any pupil reaching their potential and having the strength of character to aim for the top takes a crucial ingredient: confidence. The independent sector certainly instils plenty of confidence in its pupils, and if this attribute could be shared with the state sector in a productive and meaningful way, it could help many bright but underprivileged pupils with untapped potential transcend their circumstances. This would truly help deprived areas of the country by offering something even more important than money: greater societal cohesion, hope and aspiration.
Ultimately, the implementation of this Labour policy will be an unforgiveable act of vandalism. It fixes nothing, costs everyone, divides rather than unites and should not go ahead. Instead, leadership fostering greater cooperation between the independent and state sectors with a common goal to improve education nationwide would be a far more productive approach.
Thanks to Hugh Pickering-Carter, a Bonas MacFarlane history tutor.
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