A Labour government will impose VAT on private school fees to pay for free meals for all primary school pupils, Jeremy Corbyn is to announce.
The Labour leader will say on Thursday that the policy will boost the health and educational attainment of all children while ending a “subsidy to the privileged few”.
Can’t quite see what subsidy no VAT on school fees is.
The taxes which pay for the state system aren’t charged VAT as well. The grants to the state schools from the tax aren’t carrying VAT. Private schools aren’t paying VAT on fees. What subsidy?
That two versions of something are under the same tax regime isn’t a subsidy to one of them.
Interestingly, if the VAT is imposed then private schools will no longer have any incentive to reach out to those other local schools, will they? It being the threat of VAT which has been driving such programs. Might rather backfire….without the threat much of the power over them goes.