Doubts grow over Labour’s VAT plan for private schools

Confusion over 1 January start date as unions, tax experts and school leaders say it is unworkable

Government plans to impose VAT on private schools from 1 January next year may have to be delayed because of warnings from unions, tax experts and school leaders that meeting the deadline will cause administrative chaos and teacher job losses, and put pressure on the state sector.

The Treasury on Saturday night refused to confirm that the plan to impose 20% VAT on private school fees would go ahead from 1 January, as confirmed by the chancellor, Rachel Reeves, in July, instead saying it would be introduced as soon as possible". Later, however, after publication of this story, the Treasury changed its line and said it was planning to stick by the 1 January deadline.