UK to tax private schools to support public education

The U.K. will end a tax exemption for private schools starting Wednesday, VOA reported citing an announcement by the Labour government. This decision is expected to generate over £1.5 billion ($1.9 billion) for public education. From January 1, private schools will be required to pay a 20% value-added tax on tuition fees, which will help fund thousands of new teachers and enhance standards in state schools.

Finance Minister Rachel Reeves emphasized the need for change, stating that the funding will benefit the 94% of children educated in state schools. This policy, part of Labour’s election campaign promises, was outlined in the inaugural budget released in October. The government projects that the funding will reach $2.1 billion annually by 2029-30, allowing for the hiring of 6,500 new public sector teachers.

While some opponents argue that this reform may lead to increased state school enrollment and costs, studies from the Institute for Fiscal Studies suggest that the number of children in state schools may actually decline by 2030 due to a projected population decrease.