Private schools in England will pay 20% VAT on tuition fees from January 1

To tackle educational inequality, the Labour government will end the tax exemption for private schools, which will have to pay 20% VAT on tuition fees from next year.

Private schools in the UK enjoy a tax exemption, but this policy will end in 2025 under the decision of Labour Finance Minister Reeves in the 2024 budget. From January 1, private schools in England will have to pay VAT at 20 per cent of tuition fees, which will be used to subsidise 6,500 new teachers and raise standards in state schools.

Education inequality in Britain has been rising for years, and the Labour Party campaigned on a promise to scrap tax exemptions for private schools, hoping to pump 1.5 billion pounds into the country in the 2025-2026 school year, rising to 1.7 billion pounds by 2029-2030, Agence France-Presse reported.

"It's time to do things differently," Reeves said in a statement Sunday.

According to the Independent Schools Council, the average tuition fee at a private school is £18,000 a year. That number is set to grow, with the government expecting fees to rise by 10 percent, with schools picking up some of the extra cost.

Education Secretary Philip Philippson said: "A high standard of education cannot be provided only to families who can afford it."

Opponents of the reformers argue that if private schools close, enrollment in public schools will surge, increasing government costs. However, the findings suggest that the number of pupils in state schools in England will actually fall by 2030 due to a projected decline in population.

Several research centres have pointed out that the gap between private and state schools in England has widened sharply during the 14 years of Conservative government.