PM blasts Starmer over tax raid plans for private schools
RISHI Sunak has accused Sir Keir Starmer of attacking aspiration by demanding an end to tax breaks for private schools.
The Prime Minister said the Labour leader was putting “resentment” before “opportunity” by wanting to charge VAT on parents’ bills.
Private schools can claim charitable status so are eligible for tax relief. It means they are exempt from payingVAT on school fees.
At Prime Minister’s Questions, Sir Keir demanded to know why Mr Sunak’s old school, Winchester College, receives taxpayer subsidies.
He insisted that the funding should instead be going to driving up standards in places like Southampton, Mr Sunak’s home town.
But the PM hit back, accusing Sir Keir of “attacking the hard-working aspiration of millions of people”, and said the
Government was improving education for everyone. In England and Wales, private schools with charitable status also get at least 80 per cent relief on business rates. However, in Scotland this discount was removed in April.
Labour confirmed at the weekend that Sir Keir would retain Jeremy Corbyn’s policy of scrapping private schools’ charitable status. However, critics argue the move would put up to 200 sites at risk of going bust because of families being priced out and leaving – while the state sector would struggle to pick up the slack. Sir Keir suggested the money for private school tax exemptions would be better spent driving up standards in the state sector. Labour has pledged to use the savings to fund the “most ambitious school improvement programme for a generation”.