I have updated this post wrote it last night in a bit of a rush before bed and published it.
I’m against private schools in principle. Giving people an unfair advantage, entrenching that with a massive impact on the establishment. They are designed to keep people at the top, out of fear of people’s social class falling for their children. Will this issue shape how I vote in any future election no, other issues which are far more important to me. I would rather private schools were banned or any special treatment removed so they were no longer viable. Removing artificial social barriers is important to society.
Rachel Reeves’s conference speech on private schools in 2021.
Right now, private schools enjoy charitable status which makes them exempt from both business rates and from VAT at a cost to the taxpayer of £1.7bn every year.
But conference here’s the truth: Private schools are not charities.
And so we will end that exemption and put that money straight into our state schools.
That is what a Labour government will do.
Two ways to interpret what Rachel said. Labour will remove charitable status or the exemptions. Two years later tax exemptions are being changed to reform private schools.
Opposition parties are reactive don’t have the ability to be proactive, and don’t have the power of government. Unable to control the narrative or pull the levers of the executive to their whims. What they talk about and give air time matters. Getting that message out is hard for opposition parties. Labour has focused on the sense of unfairness, and private schools are part of that push. Possible extra money going straight to state schools, parents have noticed schools having funding issues.
Labour’s argument is charitable status was shorthand for adding VAT to school fees. The media is reporting this as a U-turn, I don’t think it is. I do think it communication misstep by Keir. With conference season coming soon, better to get it out with nobody listening. Not expecting voters to hear about this or notice it. I’m expecting it going be an important plank and talked about, with the Labour narrative driving the headlines.
The plan is to remove VAT exemption but leave that charitable status. Schools could get around this by lowering fees, and donations increase. Unless donations are no longer considered tax-free gifts. Therefore reducing potential VAT revenue. Changing the law can be a rather hard and time-consuming task. Simple quick fixes can leave an awful mess to clean up later. Watch this space this could join a long list. Maybe Labour plans to look at other tax exemptions.
My gut is telling me doing it matters more compared to how it is done. This is one way to implement adding VAT to school fees. They are sticking to their guns on the issue. I have a sneaky feeling voters care more about the action, the VAT tax break disappearing is easy to understand. One thing is clear this obvious difference between the main parties and Labour is sticking to it.
May not agree with final outcome. I do share deep-seated concerns about what Labour priorities are. Feeding into worse insights from a narrow group of voters and failure to control the narrative. Deeply unhappy and have not made up my mind about who I’m going to vote for in the next election.
Keir’s critics have been attacking him for ditching his leadership pledges and changing his policy platform. Some of that criticism is largely unfair, but this is another example they can use. A trade-off that leaves open an exemption, donations go up fees go down. Donations are tax-free, which helps elite older schools the most. If your ideology lean going much further you won’t be happy.
Part of me is willing to give him the benefit of the doubt. The other part of me is deeply worried that his priorities don’t align with my own. Never going to get a party that aligns 100% with your views and that’s something I’ve gotten used to. Britain won’t vote for radical revolution at the ballot box. To me seems people have yet to accept that and understand long term battle is required. Seems far too many people who frankly have not realised that and going to be disappointed until the end of time.
Path to general election has started we don’t know when.