Holy Smoke: Losing faith - will Labour’s VAT policy hit religious schools hardest?
Sep 8, 2024
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Dan Hitchens, a writer for The Spectator, discusses the potential fallout of Labour's proposed VAT on private schools, particularly its impact on affordable faith schools. He raises concerns over the financial sustainability of religious institutions amid rising costs. Raisel Freedman from the Partnerships for Jewish Schools shares insights on how this policy could endanger Jewish independent schools, especially as they serve as safe havens in a climate of increasing antisemitism. Together, they navigate the implications for diverse educational models.
The imposition of VAT on private schools, particularly faith-based institutions, poses a significant threat to their viability and accessibility for low-income families.
Concerns are raised about the ideological shift in Labour's policies towards religious schools, potentially endangering educational support for vulnerable communities amidst rising antisemitism.
Deep dives
Impact of VAT on Independent Schools
The discussion highlights the significant repercussions of imposing VAT and business rates on independent schools, particularly small institutions catering to families from modest backgrounds. For example, Emmanuel Christian School in Leicester, which operates on minimal fees of £220 per month, faces existential threats from a potential 20% fee increase due to these new policies. Such schools, often run with idealism and limited resources, are likely to pass these costs onto parents who may struggle to afford the raised fees, potentially leading to closures. Many of these schools serve specific religious communities—Christian, Jewish, and Muslim—making their survival crucial for maintaining diverse educational options for families choosing smaller settings over larger state institutions.
Progressive Ideology and Religious Education
The conversation raises concerns about a shift in Labour's approach towards religious education, suggesting a growing ideological hostility towards smaller, faith-based institutions. Under the new-style Labour government, there is a perception that policies may overlook the unique needs of modestly funded religious schools that provide vital educational support to their communities. The impact on Jewish schools, particularly those in the Haredi community, is also emphasized, as these institutions fulfill cultural and educational needs that state schools may not cater to adequately. The potential burden of increased fees could displace students from their familiar environments at a time when safety and community are paramount, especially amidst rising antisemitism.
Call for Exemptions and Support for Small Schools
The argument suggests that the Labour government should consider exemptions for small, low-fee schools to prevent jeopardizing their operations under the new VAT policies. Several schools charge fees below the average cost of state education and are serving primarily lower-income families, making the case for a tiered approach to policy implementation. Advocates propose that instead of imposing blanket VAT, a threshold could exempt schools charging under a certain amount. This adjustment would protect these community-oriented institutions and affirm the government's commitment to diversity and educational equity while acknowledging the financial realities faced by families relying on small independent schools.
In this week’s copy of The Spectator, Dan Hitchens argues that a lesser reported aspect of Labour’s decision to impose VAT on private schools is who it could hit hardest: faith schools. Hundreds of independent religious schools charge modest, means-tested fees. Could a hike in costs make these schools unviable? And, with uncertainty about how ideological a decision this is, does the government even care? Dan joins Damian on the podcast to discuss.
Raisel Freedman from the Partnerships for Jewish Schools also joins later, to discuss how the measure could threaten Jewish independent schools, when they provide a haven for students from a climate of rising antisemitism.
Produced by Patrick Gibbons.
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