Removing private schools’ charitable status will likely raise £600 billion less than Labour hopes it will, a think tank has warned.
Many of Labour’s plans for education reform hinge on lifting the tax exemptions on private schools, meaning they would charge VAT on fees.
The party has repeatedly estimated that doing so would raise £1.6 billion in VAT.
But that figure has been contested today in a new research report by the EDSK think tank, run by former government adviser Tom Richmond, which found that “claims about how much new revenue could be unlocked by this policy seem very optimistic”.
