Comment

Labour's attack on school fees is forcing the Tories into a class war

Making parents pay 20 per cent VAT is not a solution to our educational woes – the money raised won’t even touch the sides

Labour's plans to impose a 20 per cent tax on private school fees has been dominating middle-class dinner parties
Labour's plans to impose a 20 per cent tax on private school fees has been dominating middle-class dinner parties Credit: Jacob King/PA Wire

I’m currently spending half term with friends. We have eight children between us, and, as with every other middle class social gathering I’ve been at recently, talk has inevitably turned to schools – and Labour’s manifesto pledge to add VAT to fees at private institutions.

Our collective offspring cover the gamut of state and private pupils, and the post-dinner chat has become extremely heated at times. Whether true blue Conservatives, occasional Tory voters or never voted Tory in our lives, here we are, unable to talk about anything else.

Well, congratulations Sir Keir. Because by poking this particular hornets’ nest with a policy that, lest we forget, will affect the families of just seven per cent of voters and which will, according to its most optimistic predictions, raise a comparatively small £1.7 billion towards education spending (which totalled £105.5 billion in 2023-23, with £57.3 billion of that going on schools), Labour has effectively forced the Tories to start fighting a class war – the last thing they need to be doing at this point in time. 

Right-leaning voters like me and my friends – or even the Left-leaning ones who send their kids to private schools – are wrapping themselves in complete knots over this. We all fall into the category of the comfortably off, but far from super-rich: if we’re paying, it’s day school, not boarding, unless we’re in receipt of some extra help like the military families I know; it’s working two jobs bloody hard and digging down the sides of the sofa every term to scratch the fees together – or it’s forking out on a more expensive house to make it into the catchment area of a decent state school and paying for extra-curricular sports and music lessons.

Most of us would be totally screwed if the 20 per cent comes in, particularly if it happens in one fell swoop. 

But middle-class parents agonise about this stuff – not least because, while they don’t always have the choice themselves, they will definitely have an awareness of what the private school system offers in terms of outcome. And however we’re funding it, it’s about our kids getting a rounded education, not just learning how to read and add up.

Let’s face it, our kids are probably going to be OK regardless. As one friend who is also scratching the fees together each term correctly puts it: “It’s parental education and involvement that are the greatest wealth.” Our middle-class children have been read to every night, taken to concerts and plays and exhibitions every holiday, know that the world can be their oyster.

We can huff and puff all we like about the unfairness of higher fees, or why Labour thinks it should be up to taxpayers paying for private school to address educational inequality, or why its sums don’t add up, but our children have been privileged from the word go and most of them have good prospects ahead of them regardless of where they go to school. 

However, this is where Labour wants us to focus our attention. Lots of hot air has been expended on whether its pledge is fair, or whether it’s a performative jab at the wealthy with muddled messaging. But as we go round and round in circles debating the merits of some people having more money than others, Labour is forcing a class debate – and revealing the truly nasty side of some voters – when what we should really be having is a debate about the quality of education, and how much that realistically costs.  

I’ve heard some dispiriting stories during this debacle – of parents moaning that, with two kids in private school they’ll find the ‘unfair’ VAT too hard to pay, even while one parent doesn’t work; of champagne socialists nodding along at the benefits of the state system as long as it’s for other people’s kids.

It’s all grist to Labour’s mill – and, to be fair to Labour, does a good job of highlighting the massive disparity of educational opportunity between the haves and have-nots.

Lucy Denyer: ‘The argument should be about improving outcomes for the poor – not punishing the rich’ Credit: Leon Neal/Getty

You can’t help but look at countries like Switzerland or France, where everyone attends their local school, and compare this with the bunfight that is UK schooling. Or acknowledge that it’s middle-class parents putting their kids in state schools that brings overall outcomes up. 

Or that it’s demonstrably damaging to society to bus some kids out of the neighbourhood to take advantage of tennis lessons or public-speaking classes. 

And yes, this policy will affect those who can least afford it. For the truly rich, 20 per cent is merely a rounding error. Some schools will close, and many private school pupils will have to leave their current institutions – although whether it will be the 25 per cent that the financial consultancy Baines Cutler estimates is debatable. 

But let’s talk cold, hard facts here. Some of Labour’s education proposals are impressive: a “national excellence programme” for school improvement; £347 million towards teacher recruitment, a “10 by 10” pledge of opportunities with the funding provided; free breakfast clubs for all primary pupils, even if some – such as changing academy rules to make all schools follow the national curriculum – seem misguided, given how disproportionately well many academies perform. 

But £1.7 billion? That’s not even going to touch the sides. And when you take into account the private school pupils who would need accommodation in the state system, it’s even less, even with conservative figures such as those from the Institute for Fiscal Studies, which concluded that the VAT rise would have a “limited” effect on private school numbers.

It estimated that the VAT levy would give Labour a two per cent increase in day-to-day spending on state schools. That’s £144.40 per pupil, given that state school funding was £7,220 per pupil in 2022-23. It’s not going to pay for a lot of music lessons, or more teachers, or fund a mental health programme in every school.

No, the real shocker here is that Labour is using a class war to disguise how little this one tweak to the system will bring in – and dressing it up as the solution to all our educational problems. When expressed as a proportion of GDP, and adjusting for inflation, education spending peaked in 2009-10 at 5.4 per cent, its highest since the mid 1970s. Right now, it’s 4.2 per cent – only fractionally above what it was back in 1999-2000. 

If Labour really wants to get down and dirty with numbers, this is the argument we need to be having. The Tories should be looking at ways to spend more on education, and fighting back with the fact that the best state secondary schools in the country are largely the academies founded or transformed as a result of Goveian educational reforms. 

It should be pledging to found more of them, rather than bleating about seven per cent of the population. It should be pointing to the fact that England has some of the best literacy rates in the West, thanks to the introduction of phonics, and that traditional schools, whether private or state, are the ones that get the best results. 

They should be playing Labour at its own game and pledging for private schools to adopt two state schools each, being generous with their facilities and extra-curricular opportunities, in the manner of Thomas’s Fulham.

Thomas’s Academy in Fulham, in exchange for housing the buses of the fee-paying Thomas’s schools on its playground at night, gets access to their music, art and science teachers. Those are the things that will make the difference to the lives of kids who would never get near a private school.

Because this is what the argument should be about – not punishing the rich, but improving outcomes for the poor.