Labour's VAT Policy on Private Schools Sparks Fears of Exodus to State Sector

Labour's decision to impose VAT on private school fees is expected to push tens of thousands of students out of private education and into the state sector. The policy, set to take effect in the new year, will remove tax exemptions and business rate relief for fee-paying schools. Critics, including headteachers, warn that the move could threaten the survival of smaller private institutions and increase pressure on state schools. The government argues that the revenue generated will help fund additional teachers for the public education system. Financial watchdogs predict that around 35,000 to 37,000 students may be affected by the policy shift.