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Man’s a buffoon

Private schools will “have to ask themselves” whether to pass Labour’s planned VAT raid to parents, Sir Keir Starmer has said.

Amid growing controversy about the proposed move’s effects on middle-class parents, the Labour leader said private schools would not have to pass on increased VAT costs by raising fees.

Where does he think there’s a 20% margin in private school budgets? Wages? Profits?

15 thoughts on “Man’s a buffoon”

  1. Shirley public schools are not allowed to make profits, which is why they can claim charitable status.

    What I don’t understand is, why is Starmer attacking his own constituency: the middle class public employee ?

  2. Actually its a 17% margin. Were the fees to remain the same and the schools swallow the VAT bill then the amount they would have to find is 17% of the charged fees, not 20%.

    Economists and numbers……..

  3. So let me get this straight
    Sir Kier wants to add 20% to the fee paid for kids’ schooling. That 20% to go straight to the Treasury.
    Sir Kier also thinks that shielding parents from the effect of that increase is somebody else’s problem.

    Sir Kier is either an idiot or a dishonest man.

  4. Of course the parents will have to pay. The punter always pays is an important fact of economics which seems to pass by the proposers of new taxes.

    “Sir Kier is either an idiot or a dishonest man.” Either? Or?

  5. The very *POINT* of VAT is a charge to the consumer. It’s the consumer wot’s supposed to feel the hurt. It’s not a bug in VAT, it’s the entire fucking POINT. Suppliers who “absorb” the VAT are disrupting the entire process that VAT is designed to implement. To the extent that I would call it fraud, and those calling for it to be done are encouraging fraud.

  6. Exactly jgh

    When my mum and Dad got married in the early 1950s, their ring was subject to 50% sales tax.

    VAT is just the Europeanised version of such taxes.

  7. What jgh says; Starmer is basically advocating VAT fraud.
    Nick Robinson should have picked up on this but, well, BBC twat.

  8. Ottokring says
    Shirley public schools are not allowed to make profits, which is why they can claim charitable status.

    Of course charities make profits, they’re just not taxed. Call them endowments, charity not yet disbursed or what you like, but Oxfam, RSPA etc are sitting on millions. Eton and the top schools are loaded with alumni dosh.
    It’s the smaller schools without reserves which will be hit. Those places frequented by the children of the aspiring middle class.
    The super elite will hardly be affected. After all, if they can afford political donations (funnelled through the business as a corporation tax deductible) they can afford a small hit to the school fees.

    Starmer is a buffoon, he’s an idiot, he’s a liar. In short, he’s a cunt.

  9. One of the few letters I got published in the Torygraph was in the Blair years;
    The usual Labour MP excuse is “I’m not a crook, I’m just stupid”. In fact, it’s a little of both…

    Some things never change.

  10. “Those places frequented by the children of the aspiring middle class.” Like the school Sir Kneel himself attended? Though he got a freebie apparently, the council paying his fees.

  11. Does anyone know if private schools could reclaim the VAT on any of their purchases – heating, sports equipment, IT, vehicles? And if so would this mean schools need to raise their prices by say 10% or so if half their inputs are VAT reclaimable.
    Obvs, the big costs for a private school are wages – it would be amusing, although harsh on the teachers, if those on 50k+ voluntarily agreed to take a pay cut equivalent to the VAT, leaving the Exchequer net no better off.

  12. Bloke in North Dorset

    Obvs, the big costs for a private school are wages – it would be amusing, although harsh on the teachers, if those on 50k+ voluntarily agreed to take a pay cut equivalent to the VAT, leaving the Exchequer net no better off.

    If it was about raising revenue it would, but the revenue is only the excuse, its really about pandering to the left and continuing Labour’s long established policy of pulling up the ladder behind them. See also 11+ Grammar schools and the assisted places scheme.

    As long as the Exchequer isn’t worse off they won’t care.

  13. @philip – “Eton and the top schools are loaded with alumni dosh.”

    That’s why they don’t have problems like RAAC – when they have a problem they have the money to fix it properly. They don’t indulge in the false economy applied to public buildings.

  14. @bongo

    “Does anyone know if private schools could reclaim the VAT on any of their purchases – heating, sports equipment, IT, vehicles? And if so would this mean schools need to raise their prices by say 10% or so if half their inputs are VAT reclaimable.”

    Most schools run at ~70% of costs are wages so not vatable.
    there is then a very big wedge of nonsense where it might not be able to reclaim some input VAT depending on how or where the item is used.

    Buy two identical laptops:
    – one for the school secretary: you can reclaim the VAT
    – one for use in classrooms – used by “consumer end users” – you can’t…

    It’s a mess.

  15. If they charge VAT on their outputs, then all their input VAT becomes reclaimable. It might not be such an earner as the miserable Labour c7nts think. Although every fule know, Labour is comprised of idiots

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