Labour plans to remove tax exemptions from private schools would boost public coffers by upwards of £1.3 billion even if some parents move their children into the state sector, the Institute for Fiscal Studies has predicted.
Sir Keir Starmer has set out plans to charge VAT on independent school fees and lift other exemptions currently enjoyed by the sector.
The money would be then used to pay for various initiatives for state schools including incentives for teachers and new improvement teams.
Labour previously predicted it would raise £1.6 billion in VAT and £100 million in business rates as a result of the policy, though this was recently challenged by the EDSK think tank which warned the party’s calculations may be £600 million out.
