A taxing question for independent schools

1 Sep 2023

Labour has confirmed that it will remove key tax exemptions for independent schools, as part of its mission to break down  barriers to opportunity. Much of the detail is yet to be determined – so what do we know, and what can schools do now to build resilience and maintain trust? In the fourth report in DRD’s Labour series, Anna Cacciaguerra Ranghieri asks how independent schools should prepare for Labour’s tax plans.

In July, Labour launched its Breaking Down the Barriers to Opportunity mission – one of five such missions that will form a pillar of its manifesto and drive policy – aiming to “shatter the class ceiling”.

The mission pledges to:

  • Levy VAT on private schools,
  • End the business rates exemption for private schools.

Labour have promised to invest nearly £1bn of the money raised in “supporting a broad, enriching and excellent education for every child, recruiting and retaining thousands more teachers, reforming Ofsted and improving schools, and expanding careers advice and work experience”.

Much of the detail, however, is yet to be determined publicly.

In the fourth instalment in DRD’s Labour series, Anna Cacciaguerra Ranghieri asks how independent schools should prepare for Labour’s tax plans.

To read the full report, click here.