VAT on school fees imposed and business rates relief removed
To no one’s great surprise Chancellor Rachel Reeve confirmed in today’s Budget speech Labour’s tax raid on private schools and parents of private school pupils.
Reeve said in the House of Commons:”94% of children in the UK attend state schools. To provide the highest quality of support and teaching that they deserve we will introduce VAT on private school fees from January 2025. And we will shortly introduce legislation to remove their business rates relief from April 2025 too.
“We said in our manifesto that these changes, alongside our measures to tackle tax avoidance, would bring in £8.5 billion in the final year of the forecast. I can confirm today that they will in fact raise over £9 billion.”