Labour U-turns on plan to scrap charitable status of private schools

Published

2 years ago

September 27, 2023

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Labour has U-turned on its plans to remove the charitable status of private schools.

Shadow chancellor Rachel Reeves announced in 2021 that her party was ideologically opposed to fee-charging schools avoiding tax by operating as charities.

However, it has now emerged that, while Labour still plans to force independent schools to pay VAT, it will no longer remove their charitable status.

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Labour is claiming that politicians talking about the charitable status was only ever a shorthand for changing the taxes schools paid.

A party spokesperson said: “Our policy remains. We will remove the unfair tax breaks that private schools benefit from, to fund desperately needed teachers and mental health counselling in every secondary school.

“This doesn’t require removing charitable status, however, driving high and rising standards for every child against the backdrop of a broken economy requires political choices. Labour isn’t afraid to make them.”

Sky News understands that the change was made to Labour policy as removing the charitable status of schools would require complex legal procedures, while applying VAT is a fairly simple process.

Labour’s plan to put VAT – equivalent to 20% – on school fees has sparked outrage from some in the Conservative Party who believe it will prevent parents from sending their offspring to schools which charge tens of thousands of pounds a year to educate them.

Speaking in 2021, Ms Reeves said: “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… 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.”

Sam Coates

Deputy political editor

@SamCoatesSky

Labour has changed its policy on private schools.

It will continue to charge business rates and VAT, raising up to £1.5bn. This will fund 6,500 new teachers, mental health support workers and early speech and language training.

However, it will no longer be removing charitable status.

Asked why, the source did not say – saying they “didn’t want to get into the weeds of charitable status” and declined to say when the decision was made.

There’s a clear political logic though. This allows the measure to be done in a finance bill – i.e. quickly. Removing charitable status from schools is a highly complex affair.

The independent school sector says they started seeing the rhetoric change on this policy almost a year ago, after the November budget, when it was raised by Jeremy Hunt.

The sector is worried at the remaining uncertainties – will private schools be able to claim gift aid, tax exemptions on annual profits, for example.

“This is the worst of all worlds for schools. They must keep their charitable obligations without the benefits. This is a lot of stick, not a lot of carrot,” said one source.

Charitable status qualifies schools for an 80% relief on business rates.

Julie Robinson, chief executive of the Independent Schools Council, remained critical of the policy.

She said: “If Labour takes away the tax relief associated with charitable status for independent schools, the policy would create a two-tier system within the charity sector, setting a worrying precedent that any charity seen as not reflecting the political ideology of the day could be subject to additional taxes.

“We would love to work with Labour to build more effective ways to achieve our shared goal of improving education for all young people.”

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Labour’s policy costings only ever took into account charging VAT on school fees and ending the business rates exemption, rather than the other tax breaks.

But shadow education secretary Bridget Phillipson had spoken of “scrapping charitable tax status for private schools to fund the most ambitious state school improvement plan in a generation”.

Politics

Polymarket bets on Mark Carney win as Canadians head to the polls

Published

2 hours ago

April 28, 2025

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Polymarket bets on Mark Carney win as Canadians head to the polls

Crypto users betting on the outcome of the snap election to determine the next Prime Minister of Canada appear to be favoring a Liberal Party victory as residents head to cast their votes.

As of April 28, cryptocurrency betting platform Polymarket gave current Canadian Prime Minister and Liberal Party candidate Mark Carney a 79% chance of defeating Conservative Party candidate Pierre Poilievre in the race for the country’s next PM. Data from the platform showed users had poured more than $75 million into bets surrounding the race, predicting a Poilievre or Carney victory.

Canada, Betting, Voting, Elections — *Polymarket chances favor the Liberal Party’s Mark Carney over the Conservative Party’s Pierre Poilievre to be the next Canadian Prime Minister. Source:* *Polymarket*

The odds suggested by the platform, as well as those from many polls, show a nearly complete reversal of fortunes between the two candidates after former Prime Minister Justin Trudeau resigned in January. Trudeau and, by association, many in the Liberal Party, faced criticism over the handling of Canada’s housing crisis and questions about how he would face US President Donald Trump’s then-proposed tariffs.

Following Trudeau’s resignation, Trump stepped up rhetoric disparaging Canada, repeatedly referring to the country as the US’s “51st state” and Trudeau as its “governor.” The US President also imposed a 25% tariff on goods imported from Canada in March. The policies seem to have led to increasing anti-Trump sentiment in Canada, with many residents booing the US national anthem at hockey games and making comparisons between the president and Poilievre.

This is a developing story, and further information will be added as it becomes available.

Politics

Small boat crossings pass 10,000 at earliest point in year since records began, Sky News understands

Published

3 hours ago

April 28, 2025

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Small boat crossings pass 10,000 at earliest point in year since records began, Sky News understands

Small boat crossings have passed 10,000 in 2025 at the earliest point in a year since records began, Sky News understands.

Analysis of previous Home Office numbers and footage of people arriving today show the number of people crossing the Channel continuing to rise.

The issue has become a lodestone for political parties across the spectrum, with Rishi Sunak’s pledge to “Stop The Boats” falling well short.

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Sir Keir Starmer promised to clear the backlog of asylum applications and “Smash The Gangs” of people smugglers upstream, but critics say he has failed to do this almost a year into his stint in Number Ten.

Reform’s Nigel Farage has made the issue key to his party’s pitch to voters.

The 10,000 figure is understood to have been passed on 28 April. Official figures only go until 27 April at the time of writing, with 9,885 people detected crossing the Channel by the UK government at this point

This compares to 7,167 by the same date in 2024, 5,745 in 2023, 5,352 in 2022, and 1,796 in 2021. Data only started to get collected in 2018, and for the first three years fewer than 1,000 people were observed crossing the Channel before 28 April.

Fine weather conditions are known to lead to an increase in people crossing the Channel, with some efforts earlier this year stymied by heavy winds.

Sir Keir scrapped the Conservative’s Rwanda deportation plan when entering office. In March, the prime minister said his government had “returned” 24,000 people who had no right to be in the UK.

Chris Philp, the shadow home secretary, said: “Britain’s borders are being torn apart under Labour. This year is already the worst on record for small boat crossings after over 10,000 illegal immigrants arrived in Britain, but Labour just sit on their hands.

“Labour scrapped our deterrent before it even started, flung open the door to extremists and criminals, and handed the bill to hardworking taxpayers.

“Under new Conservative leadership, we are serious about tackling this crisis with deliverable reforms, but Labour continue to block these at every turn. Labour’s open-door chaos is a betrayal of the British people, and we will not let them get away with it.”

Mr Philp was part of previous Conservative governments, which also failed to reduce crossings.

Speaking to broadcasters, Mr Farage said: “If this carries on at this rate, by the end of this Labour government another quarter of a million people will have come into this country, many of whom frankly don’t fit our culture or cost us a fortune.”

He claimed that Reform is “the only party” saying that “unless you deport those that come illegally, they will just continue to come”.

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A Home Office spokesperson said: “We all want to end dangerous small boat crossings, which threaten lives and undermine our border security.

“The people-smuggling gangs do not care if the vulnerable people they exploit live or die, as long as they pay and we will stop at nothing to dismantle their business models and bring them to justice.

“That is why this government has put together a serious plan to take down these networks at every stage.

“Through international intelligence sharing under our Border Security Command, enhanced enforcement operations in Northern France and tougher legislation in the Border Security and Asylum Bill, we are strengthening international partnerships and boosting our ability to identify, disrupt, and dismantle criminal gangs whilst strengthening the security of our borders.”

Politics

Stacks Asia expands Bitcoin initiatives with Abu Dhabi partnership

Published

7 hours ago

April 28, 2025

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Stacks Asia expands Bitcoin initiatives with Abu Dhabi partnership

The Stacks Asia DLT Foundation has become the first Bitcoin-based organization to establish an official presence in the Middle East, aiming to promote institutional Bitcoin adoption through expanded educational initiatives.

Stacks Asia has partnered with the Abu Dhabi Global Market (ADGM) — one of the world’s fastest-growing financial centers — in a move that could boost the adoption of its Bitcoin (BTC) layer-2 (L2) solution in the Middle East and Asia.

The new partnership will play a “pivotal role” in shaping the future of Bitcoin’s “programmability and adoption” in these regions through educational programs and support for Bitcoin builders, according to an April 28 announcement shared with Cointelegraph.

Through the collaboration, Stacks and the ADGM aim to make it easier for institutions and investors to participate in the growing Bitcoin economy and help set “new standards for regulatory clarity and technical growth” for the rising global Bitcoin capital, according to Kyle Ellicott, executive director at Stacks Asia DLT Foundation.

“Stacks and ADGM are a powerful combination for accelerating Bitcoin adoption across the Middle East and Asia,” Ellicott told Cointelegraph, adding:

“ADGM has established itself as a world-class global financial hub at the heart of the United Arab Emirates, known as the ‘Capitol of Capital,’ where capital and innovation are brought together to shape the future financial landscape.”

“We’ll be working to enable the launch of educational programs, regional developer communities, and create opportunities for the real-world adoption of Bitcoin-powered applications,” he said.

Starting in May, the foundation will host a series of live and virtual events to “empower institutions” with the knowledge to integrate Bitcoin into their operations and learn about the “opportunity of productive Bitcoin capital,” Ellicott added.

Stacks Foundation pushing for a “progressive” regulatory environment worldwide

As the leading Bitcoin scalability solution, Stacks is also pushing for progressive global regulations that will cement Bitcoin’s role in the future of the financial landscape.

“We’re not just focused locally — our team is engaged in global conversations, advocating for frameworks that balance decentralization, security, innovation, and compliance surrounding the unlocking of Bitcoin capital,” Ellicott said.

A key part of the strategy involves knowledge sharing with local regulatory bodies to build understanding among government officials about Bitcoin’s characteristics and potential economic impact.

The foundation is also developing the Bitcoin Capital Activation Framework, described as a comprehensive policy blueprint to help regulators enable Bitcoin utility in their jurisdictions.

The Stacks Foundation will also launch the Bitcoin Policy Bridge in May, a working group uniting regulators from all key jurisdictions across the Middle East and Asia.

In February, ADGM signed a memorandum of understanding with the Solana Foundation to advance the development of distributed ledger technology.