Impact of VAT on Private Schools

The introduction of VAT on private school fees marks a significant change in the UK's educational landscape, particularly affecting a small fraction of students attending elite institutions. As education becomes 20% more expensive under the new Labour government regulation, parents of students at prestigious schools like Eton and Cheltenham Ladies College will face steep costs, with fees now reaching up to £63,000 per year. This move, which has long been a promise of the Labour Party, reflects a larger commitment to reinforce public education by reallocating resources from private institutions that have historically enjoyed a tax exemption. The shift indicates a growing sentiment against subsidizing elite education while the majority of students in the UK attend state schools, emphasizing a push towards educational equality.