Neathouse Partners Ltd’s Post

Interesting article for any of my school management connections.

Most likely the real reason behind this policy is not tax gain for the Treasury, but Labour's core philosophy of "Taxing the rich." Not sure if anyone has worked out the sums of: - how much VAT income will the government get from VAT on school fees, vs - how much more will state schools need to spend to cater for extra pupils who would have gone to private schools but now opt for state schools instead We can assume state schools will get a bigger budget to recruit more teachers. However it will impact teacher-to-pupil ratio to start off with and no doubt more stress to teachers. On top of that, improving school environment and facilities will take time. Labour's "socially correct" idea of levelling the playing field for poorer pupils will not succeed as there will be greater competition for grammar schools and 11 plus (and hence post code properties).

I didn't go to private school, neither did my parents...just for context... 😅 But lets look at the impact this VAT on private schools will have that The Labour Party are suggesting from Jan... - There are complaints that these schools are elitist...yes they are but what will making them 20% more expensive do? That's right more elitist than ever... 😫 - And what will happen to the children who go to private schools who will now have to move to public funded school because they can't afford the extra 20% 🤔 ...well before we get there; - - do these publicly funded schools have space?...often not... 🙄 - - do they have the resources??...almost definitely not... 😫 I know a number of people, friends of mine who are teachers...and many of their classrooms are overrun with no TA's...apparently this VAT change will generate more money to fund things like schools...but how long will that take to get from one to the other...I bet it takes years...and it may just get sucked up by the recent increase in salaries... So complete havoc for very little gain...in my opinion...but its just an opinion...what do you think? https://lnkd.in/gKnhWBr5 #tax #schools #economy #politics

Taxing Schools Out of Existence: High-Tax Labour's Signature Policy Britain has become the only country in Europe to impose a tax on education, a decision widely criticised as a divisive and harmful policy. Many view it as a move born not out of necessity, but out of spite designed to appease the far-left factions of the Labour Party rather than to address genuine economic or social challenges. For Labour’s leadership, it appears ideological dogma has taken precedence over practical governance. Instead of fostering a system that prioritises access to quality education for all, this policy risks undermining independent schools, many of which provide vital support to state education through scholarships, bursaries, and shared resources. Critics argue that this approach could lead to a two-tier system where the very institutions capable of alleviating pressure on the state sector are forced to shut their doors. This would result in greater strain on already overstretched state schools and could ultimately harm the very communities Labour claims to champion. Furthermore, this unprecedented move sets Britain apart from its European counterparts, where education whether public or private is recognised as a cornerstone of societal development and kept free from punitive taxation. By contrast, Labour’s policy threatens to turn education into a political battleground, eroding the diversity and choice that have long been hallmarks of the UK’s educational landscape. Is this truly the way forward for Britain’s children, or simply a short-sighted strategy driven by political expediency? How can parents and schools mitigate against this tax on education? Offshore Advisory Group (OAG) oagroup.co.uk contact@oagroup.co.uk

A key tax plan of the Labour administration was to impose VAT on private school fees. Now that the 2024 General Election is behind us and the Labour government are starting to settle into their tenure, what do we know about the proposal and how it will affect the various stakeholders? Find out in our article here: https://lnkd.in/d_6GgHKY #cmslaw #education

The debate over the school fees VAT policy is picking up pace. Since we published the Ashbridge Partners research, several of the national papers have presented their own angles and referenced our data. Click here to read coverage from The Telegraph and Yahoo Finance: https://lnkd.in/ebC6xi7n https://lnkd.in/eRcu5aYs #telegraph #yahoofinance #vatonschoolfees #financeforgrowth #trustedadvisors

IF YOU WANT TO DANCE AN ELITE TUNE, THEN PAY THE FIDDLER ACCORDINGLY. Privatization of such things as k-12 education is a self-fulfilling prophecy: You starve public education of needed revenue, then claim you need a private school for your kids 'cause public education is deficient. Well, fine... but then plan to pay your way. The British PM's plan is more than fair. (And it won't hurt this guy to keep working.) "Mark Manwaring-White, 67, had been hoping to retire but a policy introduced by Britain's new Labour government means his daughter's school fees could rise by 20%. So instead, he'll keep working. "The removal of a tax exemption for private schools from January is an important part of Prime Minister Keir Starmer's drive to raise revenues for expenditure on ailing public services and to plug a hole in public finances. But it's a political gamble." READ MORE: https://lnkd.in/eGmdfn83

This is absolutely the case: introducing a new system and a new tax, because it never was about closing a tax break, takes time and care and thought to avoid unintended consequence. Let’s slow down and think carefully and collectively about 100% of the children at all the difference schools in our educational landscape. There is debate about what the consequences will be of any new education tax for a good reason - it has not been done before and so nobody knows. Stepping back and thinking through what the intent is: to improve educational opportunity for all and how the independent sector can be part of that endeavour would be the ideal. We may have passed that point , but future generations may regret that everyone did not sit down and talk things through for the good of all. The history of government created major perturbations in the educational landscape of the UK is not full of glorious triumphs in the last 60 years. Independent schools stand ready for conversation when others are also ready for that

Private schools and VAT - your questions answered! Despite opposition from families, schools and teachers, the UK’s Labour Party plans to end private schools’ exemption from paying VAT and full business rates if it forms a government on 5th July. With the general election tomorrow, we answer your questions and attempt to understand what the future of school fees may look like. Read here: https://ow.ly/u85I50Sttwf #generalelection #education #independentschools