Labour could draw on changes to VAT introduced by former Tory chancellor George Osborne in order to block wealthy parents from dodging its planned tax on private schools, the shadow education secretary has signalled.
Bridget Phillipson said the party would ensure that new legislation leaves no loopholes for people to avoid paying the levy if it wins the general election this year.
Experts have said fee-paying parents could pay for tuition in advance to try to avoid incurring VAT under a new government.
In a speech at the Centre for Social Justice, Ms Phillipson said: “We would make sure that the legislation is drawn in such a way to ensure that avoidance can’t take place.
“There is precedent for that.
“Back in 2010, George Osborne, when he made VAT changes, did something very similar.
“So we’re clear there was precedent when the legislation was drawn in such a way that it is effective in raising the money that we need to invest in our state schools.”
After he raised the standard rate of VAT to 20% from 17.5% in 2010, former chancellor Mr Osborne introduced “anti-forestalling provisions” aimed at preventing people applying the lower rate for goods and services to pre-payments.
It would in theory mean that VAT would be backdated to payments from before Labour abolished the tax exemption, as long as they were made for schooling that takes place while the policy is in place.
Earlier in the speech, Ms Phillipson set out a raft of proposals aimed at addressing what she described as “terrifying” levels of persistent school absence across England.
Labour would keep using fines to tackle school absences if it wins the next election but penalties “can never be the answer alone”, she said.
