The advent of the new year brings with it a fresh sting: the introduction of 20 per cent VAT on private school fees. Labour repeatedly argued that the move is necessary to improve standards in the state sector. But this week the Telegraph revealed that the Treasury has made no plans to ringfence the funds – meaning they can theoretically be spent on any number of government initiatives. The paper quoted a Treasury source who said:
The money is not directly hypothecated in the same way other taxes are. The physical pounds and pence are not directly ringfenced [for state schools]… It’s not physically funnelled from ‘A’ to ‘B’ but in value terms the principal is still there.
So for old times’ sake Mr S thought he’d list some of the occasions when Labour promised that the sums raised from the VAT raid would directly help those in the state sector.
Rachel Reeves, December 2024
Just last week, the Chancellor was interviewed by ITV on this very subject. Reeves was asked: ‘Will all of that money be ringfenced for state schools?’ She replied: ‘Yes, every single penny of that money will go into our state schools to ensure that every child gets the best start in life.’
Bridget Phillipson, December 2024
Ahead of the introduction of VAT on fees, the Education Secretary declared that ‘ending the VAT break enjoyed by private schools will provide much needed investment in our state schools’.
Bridget Phillipson, September 2024
Ahead of Labour conference, Phillipson was interviewed by Sky’s Kay Burley on this subject. The Education Secretary was asked whether ‘that money will go directly into helping state schools’ to which she replied ‘We will use that money to invest in our schools’, nodding as Burley asked whether that included ‘every penny of it.’
Keir Starmer, June 2024
The-then Leader of the Opposition told a voter in Sky’s election head-to-head that: ‘We will get rid of the tax break for private schools and use that money directly to fund those teachers in our state secondary schools.’
Rachel Reeves, June 2024
On the campaign trail, Reeves declared ‘Every single penny of the £1.5 billion that we will raise from this policy will be invested straight back into our state schools to ensure that all children get a good start in life.’
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