A shadow treasury document seen by The Daily Telegraph suggests Labour could scrap discounted business rates and impose Value Added Tax (VAT) on fees. The leaked document says £1.64 billion a year could be raised annually under the plans. John O’ Connell, chief executive of the TaxPayers’ Alliance said: “Politicians pushing short-sighted policies like this belong at the bottom of the class.
“Reclassifying rates on certain items makes VAT even more complicated, and chasing charities for business rates seems a strange way to make the tax system fairer.
“What’s more, charges on private schools would likely just push up fees, making them even more exclusive and busting open the bursaries system which allows less advantaged kids access to some of the best schools in the world.”
Applying VAT on fees was mentioned in Labour’s manifesto at the last general election.
The document declares if this were to “became policy it would clearly have a positive fiscal impact”.
“We know from the research done by Baines Cutler, who are experts in independent school affordability, that the consequence would be quite a number of independent schools would be forced to close.”
The memo appears to concur with Mr Lenon as it said that a “20 percent increase in fees” would likely “reduce” the revenue these schools receive as parents might have to opt for the state system.
A Labour source said: “Private schools help hoard wealth, power and opportunity for the few.
“We’re proud that the last election we said we’d tax private schools and pay for free school meals for all primary school kids.”
Labour might have been facing a general election in the coming weeks after Boris Johnson twice called for one.
In the first vote just three Labour MPs voted for, 28 voted against and 214 abstained.
This meant despite Mr Johnson winning 298-56 he did not win the two-thirds majority, 434 votes he required to win.
The second vote was won 293-46 with no Labour MPs voting for, 23 against and 222 failing to vote.
Labour Leader Jeremy Corbyn, Shadow Chancellor John McDonnell, Mr Lavery and Shadow Education Secretary Angela Rayner did not vote on either occasion.
The party have been the official position since 2010 and currently have 247 MPs in the Commons.
