Labour’s tax raid will lead to job losses says Nathan

  • 16th April 2024

Law firms have warned that independent schools are “being forced” to plan for potential redundancies because of the Labour Party’s anticipated imposition of VAT on school fees should it win the general election, The Telegtraph has reported.

Emma Thompson, partner and head of employment at law firm Thackray Williams, said: She said: “Our clients [independent schools] are already seeing a decline in student numbers, particularly in areas populated with grammar schools, in anticipation of the likely tax. Parents are expecting it to be passed down the line.

“As a result, we’re seeing schools being forced to consider restructuring and even redundancy, which is particularly difficult as they’re still reeling from the Teachers’ Pension Scheme reforms.

“We’re supporting these clients to mitigate the risks associated with taking such measures, enabling them to future proof their workforce.”

The Independent Schools Council’s deputy chief executive Simon Nathan said: “No school would want to make the decision to cut jobs. But, as teaching unions have already warned, there is a risk job losses could be an unintended consequence of Labour’s plans – and there is no guarantee those staff would then take jobs in other schools.”

Nathan called on Labour’s officials to meet with the ISC to discuss the proposed policy.

Sam Hart, head of Giggleswick School in North Yorkshire, commented: “We are committed to not compromising the quality of our educational offering. However, it will mean restructuring programmes and staff, and unfortunately, reducing bursary support to cover the VAT bill.”

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