Starmer denies ‘attack’ on private schools as he plans to charge VAT on fees

Sir Keir Starmer has refuted claims he is launching an “attack” on private schools with his plans to impose VAT payments on fees if he wins an election.

The Labour leader said he is “very comfortable” with the institutions as they criticise him for his policy that would also see their business rates exemption ended.

He was also facing allegations of a “U-turn” after Labour backtracked on plans to end the charitable status of private schools in England.

The party said the move was no longer needed to fulfil its commitment to charge 20% VAT on fees and make independent schools start paying business rates.

Sir Keir said he does not believe the institutions are an obstacle to opportunity, but he wants to ensure state schools are “just as good”.

“We have to do something about the appalling state of our schools,” he told the BBC’s Political Thinking with Nick Robinson podcast.

“It is not an attack on private schools. It’s just saying an exemption you have had is going to go.”

He also told private schools they do not have to pass the additional costs onto parents in the form of increased fees.

Labour, as first reported by the i newspaper, says it no longer needs to strip the schools of their charitable status to impose VAT on them, meaning some of the current perks will remain.

Being able to claim gift aid on donations and not paying tax on annual profits, which must be reinvested in education, are among the tax breaks that the status confers.

Party sources pointed out that they only ever intended to remove the VAT and business rates perks, saying charitable status was used more as shorthand for the policy.

A Labour spokesman said: “Our policy remains. We will remove the unfair tax breaks that private schools benefit from, to fund desperately needed teachers and mental health counselling in every secondary school.

“This doesn’t require removing charitable status, however driving high and rising standards for every child against the backdrop of a broken economy requires political choices. Labour isn’t afraid to make them.”

Julie Robinson, chief executive of the Independent Schools Council, remained critical of the policy.

She said: “If Labour takes away the tax relief associated with charitable status for independent schools, the policy would create a two-tier system within the charity sector, setting a worrying precedent that any charity seen as not reflecting the political ideology of the day could be subject to additional taxes.

“We would love to work with Labour to build more effective ways to achieve our shared goal of improving education for all young people.”

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