Labour claims adding VAT to private school fees will raise £1.7bn a year

State schools are set to get a £1.7 billion a year funding boost, the Government has claimed, when the private school VAT tax break ends on Wednesday.

From January 1, school fees will have the 20 per cent VAT rate added to them, which Labour says will help fund the core schools budget.

The Treasury says the tax change will add £1.5bn in the next financial year, rising to £1.7bn by 2029-30.

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Chancellor Rachel Reeves said: “It’s time things are done differently.

"Ending the VAT break for private schools means an additional £1.7bn a year that can go towards our state schools where 94 per cent of this country’s children are educated.

“That means more teachers, higher standards, and the best chance in life for all our children as we deliver on our Plan for Change.”

While Education Secretary Bridget Phillipson claimed that middle-class parents “who have largely been priced out of private schools” support the policy.

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However, concern has been raised by school leaders and tax experts about introducing VAT halfway through a school year, when fees have already been set.

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