North East Education News

Issue 105

I recently had the opportunity to join BBC Presenter Evan Davis to discuss the business of independent schools for Radio 4’s programme, The Bottom Line. Many independent schools have charitable status but, in introducing the programme, Evan commented that the new government is proposing to treat independent schools more like businesses and less like charities by imposing VAT on the school fees paid by parents. Whether charities or not, there is virtually no other country in the world where the provision of education is subject to such taxation – Greece tried something similar and quickly revoked the policy. It is worth noting that the Institute for Fiscal Studies (IFS) paper, on which the policy of imposing VAT was based, specifically commented that where there are cost savings to the government and positive spillover benefits there are good arguments for exempting independent schools from VAT. Any child educated outside of the…