Hulme Grammar School in Oldham, a selective fee-paying school, is among the 2,500 independent schools in the UK that educate only 7% of the school population. This minority group has recently become a target of one of Labour’s few unapologetically tax-raising policies. If elected, Labour plans to end the VAT exemption on fees, making them subject to a 20% tax. This policy is estimated to raise £1.6 billion, which the party says will be used to hire 6,500 teachers in the state sector, which educates 93% of children.
Some private school parents fear that the increase in fees will be passed on directly, making it unaffordable for some children to attend. Industry bodies have also warned that this policy could result in the closure of some schools. Hulme Grammar School, located in one of the poorest towns in England, is considered to be one of the more affordable independent schools in the country. Its fees are around the national average and well below those of prestigious schools like Eton and Winchester College, where the Prime Minister attended.
Headteacher Tony Oulton, who has experience working on both sides of the educational divide, believes that Labour’s policy misrepresents the majority of private schools and punishes parents. He explains, “The sector is not just made up of the big posh boarding schools in the south of England. The majority of schools, like mine, have parents who are making real sacrifices to pay the fees because they choose to prioritize their child’s education.”
Even without the VAT increase, fees at Hulme Grammar School will rise by 5.5% next year. Mr. Oulton says this reflects the wider cost pressures, primarily teacher salaries. He believes that he cannot absorb the VAT rise without sacrificing the 24-child class size limit that parents are paying for. He states, “I lament the political debate and the loss of nuance and insight into the impact on children. The idea that parents are buying privilege and separation does not resonate with the parents here. They don’t recognize the rhetoric that surrounds this issue and believe that they are simply prioritizing their child’s education, much like others prioritize holidays.”
While privately educated children do enjoy certain advantages, such as smaller class sizes, the average fee of £15,000 is double the funding per head in the state sector, which is £7,500. Additionally, selection processes allow independent schools to choose which students they want to educate. The Institute for Fiscal Studies has also found that private school attendance is concentrated among the wealthiest households, with three-quarters of pupils coming from the top 30% of earners and most from the top 10%. This may explain why Labour has chosen to target this sector with one of its few openly tax-raising policies.
Labour argues that the needs of the state system, which is relied upon by 93% of parents, make this policy popular. It is also unspoken that complaints from those who can afford private school fees may not elicit much sympathy. These parents are not concerned about warnings that increasing fees will lead to an exodus of pupils, putting pressure on state schools. Despite a nearly 50% increase in average fees over the last decade, private school enrollment has remained constant. In contrast, state secondary school enrollment is forecasted to decrease by 7% in the next decade as a population bulge passes through the system.
The challenges facing state education are undeniable, including recruitment and retention issues. One in four teachers leave after three years in the classroom, and the demand for special educational needs provision is also putting schools and local authorities under pressure. In fact, there are currently 576,000 children with an active education and health plan, which is almost equal to the total private school enrollment of 615,000.
Headlands School in Bridlington is one of many state schools facing these challenges, all while working to clear a £1 million deficit from its budget. Assistant head teacher Adam Woolley believes that the issues for state education go beyond the school gate. He states, “It is not just about school funding, but also funding for all the services around young people. With a million children living in poverty, there is only so much schools can do when children come to school hungry, cold, and without a stable foundation. I understand the argument from private schools and parents that this is a squeeze on their aspirations for their children, but all parents are aspirational. State schools can and should be a place where parents can send their children and aspire to great things, but this requires proper funding.”
