Private school VAT raid could hit four UK areas harder than anywhere else, Labour warned

The VAT raid on private schools could hit four areas in the UK harder than anywhere else, Labour has been warned.

The Government has been told that some cities and boroughs “do not have the capacity” for students in the state sector who could be displaced by cutting the VAT exemption on school fees.

Think tanks and industry figures have said that the policy will cause an influx of pupils into the state sector as a result of the changes to come into force in January.

But Labour has insisted the number of students leaving independent schools will be “minimal” and that “there are more than enough state school places for pupils who may move from a private school”.

However, evidence presented to Bridget Phillipson has suggested that the cities of Bristol and Salford have significant numbers of children in independent education and high occupancy in state secondary schools.

Sixth forms in the London boroughs of Richmond-upon-Thames and Camden are half full and completely full respectively, raising questions about the areas’ capacities to take on more students.

In a letter to Ms Phillipson, the shadow education secretary said it was “no help for there to be large numbers of unfilled places in state schools if these are not in the geographic areas where they’re needed”.

Damian Hinds wrote: “The widest impact of all will be that felt by children and their parents in the state sector.

“This tax could see many thousands of pupils move to the state sector, increasing class sizes and cost for the taxpayer, and ultimately making it less likely a parent will secure their preferred choice of school.

“Moreover, the haste with which this policy is being brought in – and part-way through a school year – risks great disruption not only to displaced pupils’ education, but to state schools, and to local authorities responsible for ensuring place-sufficiency.”

The Tories have demanded that the Government publish an assessment of the capacity in state schools by region and by year group before the Budget on Oct 30.

The shadow education secretary said that the information was needed as soon as possible “so that parents, schools and local authorities have the information they need”.

Mr Hinds pointed to Department of Education data, which showed that over half (59 per cent) of secondary schools are at or in excess of capacity in Bristol.

More than 900 children in the city are already in places that exceed their school’s capacity.

In Salford, 94 per cent of state secondary places were filled in the academic year 2022-23, Mr Hinds said, as he warned that the large number of children at independent faith schools in the area could cause capacity issues.

The Government also admitted earlier this month that 100 per cent of school sixth forms in Camden were at excess capacity, along with 50 per cent in Richmond-upon-Thames.

Mr Hinds described the figures as “concerning”, and said that they showed “areas of England… simply do not have the capacity for students that may be displaced through your rush to tax education”.

A government source attacked Mr Hinds for having “spent more time in his first two months in opposition defending the interests of private schools than he ever did working for state school-educated children while in government”.

They added: “He and his party have learned nothing from their crushing election defeat.”

A spokesman for the Government said: “We will ensure all children have the best chance in life to succeed.

“As part of our mission to deliver opportunity, we’re ending tax breaks for private schools from the start of 2025, to better invest in the 93 per cent of pupils in state education.

“Research by the Institute for Fiscal Studies shows the number of pupils who may move schools as a result of this change is likely to be minimal.”