Fury at Gove’s calls for 20% VAT to be levied on private school fees to tax the ‘global super-rich’

The Mail Online is reporting the reaction to former education secretary Michael Gove’s call for 20 per cent VAT to be levied on private school fees to tax the rich and boost the quality of the state sector.

The Conservative MP for Surrey Heath questioned how prestigious independent schools can justify taking lucrative taxpayer-funded subsidies when they cater to the ‘global super-rich’.

Private schools are designated as charities and benefit from significant tax breaks worth tens of millions of pounds a year, including business rate relief and VAT exemption on their fees.

Mr Gove wrote in a newspaper column in The Times (subscription required):

‘There is one group of highly successful enterprises that is pretty much insulated from the present row about business rates. Our private schools.

‘Because charities get an 80 per cent exemption from the levy. And, to my continuing surprise, we still consider the education of the children of plutocrats and oligarchs to be a charitable activity.’

The Mail reported the response from the Independent Schools Council, which represents leading private schools:

‘Charitable status is worth an estimated £150m, but every year independent schools provide more than £350m in free and reduced fee places to children from disadvantaged backgrounds.

‘Meanwhile 1,550 partnerships between independent and state schools working together, support 160,000 state students.

‘These partnerships include new free schools, and sharing of facilities and teachers, in particular in science and language subjects where there is a shortage in state schools, as well as university access support.’

More at: Fury at Gove’s calls for 20% VAT to be levied on private school fees to tax the ‘global super-rich’ 

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Comments

  1. Anonymous

    Why not? The current quid pro quo is controlled by the Independent Sector. It is therefore not transparent as to whether it’s contribution equates to the benefits gained from the existing arrangements.
    Continuing this arrangement against the backdrop of Food Banks and the crisis in Social Care is increasingly unjustifiable.

  2. Janet Downs

    Oh the irony. Gove, the Daily Mail darling during his years as Sos, now receives DM ‘fury’. Will Sarah Vine, aka Mrs Gove, keep her DM job now hubby is out of favour? And will DM owner Lord Rothermere still invite them for hols in Rothermere’s chateau? Perhaps the answer is still Yes, since DM ‘fury’ sells copies of the DM.

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