Bucks Council opposes Government plans to raise taxes on private schools

Plans were announced under the new Government to add a 20% VAT on independent school fees and remove business rates relief for the institutions. These changes are due to come into effect on the 1 January, 2025.

Bucks Council leader, Councillor Martin Tett, has written to the Secretary of State for Education calling for the strategy to be reconsidered.

According to Government figures increasing the amount private schools are taxed will generate £1.725 billion a year, which it plans to redistribute to improve its education services.

Bucks Councillors will also carry out a full impact assessment on the impact of Education Tax on local services.

Councillor Anita Cranmer said: “Local education authorities are bracing for potential pressure on state school admissions when the new ‘tax’ takes effect and makes independent schools unaffordable for many parents. This shift could lead to increased class sizes and limited access to preferred schools, posing a huge challenge for Buckinghamshire Council schools.

"We are also expecting that children with SEND but without an Education, Health and Care Plan or attending a special school chosen by their parents are expected to be particularly affected. The Government did not grant VAT exemptions for these groups. Those children, if now entering mainstream schools, would result in increased costs for Buckinghamshire Council’s High Needs block, further straining resources.

“Communities are also likely to be losers as independent schools may be forced to reduce or eliminate bursaries for disadvantaged, but talented young people and community reduce access to their facilities.

"Every child in Buckinghamshire deserves the best education whether that is in a mainstream school or an independent school. We are calling for an urgent reassessment of this Government policy so we can mitigate its adverse effects on Buckinghamshire's education system.”

The Government has argued ending tax breaks for private schools will benefit a majority of children in the country. According to its data nine out of 10 children attend state schools rather than private or independent institutions.