Sir Keir Starmer says there is ‘no evidence’ private schools will have to close due to Labour’s VAT plans
Sir Keir Starmer has said there is “no evidence” private schools will be forced to close due to Labour’s plans to impose VAT on them.
Speaking to Sky’s Sophy Ridge, the Labour leader defended his party’s education policy to use the money to support state schools.
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“I think they will adapt,” he said. “They’ve had lots of increases in costs over the last 14 years and they’ve accommodated it.
“There’s no evidence to show these schools will close. They don’t have to pass the cost on to parents.”
Labour leader Sir Keir Starmer with Sky’s Sophy Ridge on Thursday
Private schools are currently exempt from VAT – but the Labour Party has pledged to close the current loophole.
Sir Keir was grilled on the policy at the Sky News Leaders’ event in Grimsby.
It’s a difficult choice’
Addressing parents’ concerns, he added: “It’s a difficult choice. But they’re businesses in the end and they’re very successful in the round.
“I want them to thrive. But we need to make this choice, because in the end, if I want the teachers we need in our state secondary schools, I have to answer the question you would put to me, just how are you going to pay for that?
“You’re going to pay for that by getting rid of the tax breaks for private schools, and use it to invest in the teachers we need in our state secondaries.”
Sir Keir was also pressed on the recent backlash to the policy, which Ms Ridge suggested may be related to “many people in Westminster and in the media who either went to private school or send their children there”.
“I think there’s an element of that,” he replied.
Grammer school background
The Labour leader spoke to Sky News following the final TV debate between he and Prime Minister Rishi Sunak before voters go to the polls on 4 July.
A snap Sky News poll suggested the public viewed their performance at the event in Nottingham on Wednesday equally.
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Sunak and Starmer’s final face-off
Ms Ridge also quizzed the Labour leader on his own education. He attended a grammar school in Surrey, which became private while he was there.
Asked how he felt about the change, he said: “I don’t think I even appreciated it.
“If you ask all the people that were at school with me – we started off as state grammar school boys, paid for by the local authority – we ended up as state grammar school boys paid for by the local authority.”
He stressed the funding and support from the council remained the same.
“It’s obviously very different now, but it is very important to me that every child has those opportunities,” he added.
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The Labour leader says his first steps should he be in Downing Street on 5 July are 40,000 extra NHS appointments to reduce waiting lists, recruiting secondary school teachers, and setting up ‘Great British Energy’ to minimise energy bill rises.
NHS fit ‘for the future’
Specifically on the NHS, he said he aims to “change the very model of the NHS” to “make much greater use of AI” and ensure it is more preventative and community-based.
“Creating the NHS is one [moment] we celebrate every year,” he said.
“I want to make sure that in the 50, 60, 70 years people are celebrating the fact that an incoming Labour government in 2024 made sure the NHS was not something to just proudly look back on, but is actually built fit for the future.”
Asked for his general feelings as the election campaign comes to an end, he said: “We’ve been here for four-and-a-half years.
“I woke up with a smile on my face on 1 January, because I knew we’d have an election this year.
“We’re ready for this. We’ve got a positive offer to put to the country. So we’re campaigning with a smile and a spring in our step.”
After his rival Mr Sunak told a previous TV debate he eats too much Haribo during election campaigns, Sir Keir said coffee was his vice to get him through
“Coffee coupled with cheese sandwiches and tuna sandwiches in the back of that Labour bus,” he said.
The Consumer Financial Protection Bureau (CFPB) will likely see a reduced role in crypto regulations as other federal agencies like the Securities and Exchange Commission (SEC) and state-level regulators assume a bigger role in crypto policy, according to Ethan Ostroff, partner at the Troutman Pepper Locke law firm.
“I think with the current administration, my sense is, we are highly likely to see a significant pullback by the CFPB in the context of the activity by other regulators,” Ostroff told Cointelegraph in an interview.
State regulators also have the authority under the Consumer Financial Protection Act (CFPA) to assume some of the regulatory roles of the CFPB, the attorney said but also added that some regulatory functions will continue to fall within the purview of the CFPB as a matter of established law.
Ostroff cited the New York Department of Financial Services (NYDFS) and the California Department of Financial Protection and Innovation (DFPI) as regulators to keep an eye on as potential leaders of crypto regulations at the state level.
However, the attorney clarified that while the CFPB may see a diminished role during the Trump administration, the agency would not be outright dismantled during the current regime due to “statutorily mandated obligations and requirements” that require acts of Congress to change.
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Trump administration targets CFPB in efficiency push
The Trump administration targeted the CFPB as part of a broader push by the Department of Government Efficiency (DOGE) to slash government spending and reduce the federal debt.
Russell Vought, the recently appointed head of the CFPB, announced major funding cuts to the agency and scaled back operations within days of assuming the helm at the CFPB in February 2025.
Source: Russell Vought
Massachusetts Senator Elizabeth Warren criticized Elon Musk for dismantling the CFPB, which the US senator co-founded back in 2007.
Warren characterized Musk as a “bank robber” and claimed that the Trump administration dismantled the CFPB to undo consumer protection rules and have greater control over the financial system.
In a February 12 interview with Mother Jones, the senator stressed that the Executive Branch of government does not have the statutory authority to fully dismantle the CFPB, which can only be done through Congressional approval.
Magazine: SEC’s U-turn on crypto leaves key questions unanswered
Nearly 400,000 creditors of the bankrupt cryptocurrency exchange FTX risk missing out on $2.5 billion in repayments after failing to begin the mandatory Know Your Customer (KYC) verification process.
Roughly 392,000 FTX creditors have failed to complete or at least take the first steps of the mandatory Know Your Customer verification, according to an April 2 court filing in the US Bankruptcy Court for the District of Delaware.
FTX users originally had until March 3 to begin the verification process to collect their claims.
“If a holder of a claim listed on Schedule 1 attached thereto did not commence the KYC submission process with respect to such claim on or prior to March 3, 2025, at 4:00 pm (ET) (the “KYC Commencing Deadline”), 2 such claim shall be disallowed and expunged in its entirety,” the filing states.
FTX court filing. Source: Bloomberglaw.com
The KYC deadline has been extended to June 1, 2025, giving users another chance to verify their identity and claim eligibility. Those who fail to meet the new deadline may have their claims permanently disqualified.
According to the court documents, claims under $50,000 could account for roughly $655 million in disallowed repayments, while claims over $50,000 could amount to $1.9 billion — bringing the total at-risk funds to more than $2.5 billion.
FTX court filing, estimated claims. Source: Sunil
The next round of FTX creditor repayments is set for May 30, 2025, with over $11 billion expected to be repaid to creditors with claims of over $50,000.
Under FTX’s recovery plan, 98% of creditors are expected to receive at least 118% of their original claim value in cash.
Related: FTX liquidated $1.5B in 3AC assets 2 weeks before hedge fund’s collapse
How FTX users can complete KYC
Many FTX users have reported problems with the KYC process.
However, users who were unable to submit their KYC documentation can resubmit their application and restart the verification process, according to an April 5 X post from Sunil, FTX creditor and Customer Ad-Hoc Committee member.
FTX KYC portal. Source: Sunil
Impacted users should email FTX support (support@ftx.com) to receive a ticket number, then log in to the support portal, create an account, and re-upload the necessary KYC documents.
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FTX’s Bahamian subsidiary, FTX Digital Markets, processed the first round of repayments in February, distributing $1.2 billion to creditors.
The crypto industry is still recovering from the collapse of FTX and more than 130 subsidiaries launched a series of insolvencies that led to the industry’s longest-ever crypto winter, which saw Bitcoin’s (BTC) price bottom out at around $16,000.
While not a “market-moving catalyst” in itself, the beginning of the FTX repayments is a positive sign for the maturation of the crypto industry, which may see a “significant portion” reinvested into cryptocurrencies, Alvin Kan, chief operating officer at Bitget Wallet, told Cointelegraph.
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Sir Keir Starmer has said his government stands ready to use industrial policy to “shelter British business from the storm” after Donald Trump’s new 10% tariff kicked in.
The UK was among a number of countries hit with the lowest import duty rate following the president’s announcement on 2 April – which he called ‘Liberation Day’, while other nations, such as Vietnam, Cambodia and China face much higher US levies.
But a global trade war will hurt the UK’s open economy.
The prime minister said “these new times demand a new mentality”, after the 10% tax on British imports into America came into force on Saturday. A 25% US levy on all foreign car imports was introduced on Thursday.
It comes as Jaguar Land Rover announced it would “pause” shipments to the US for a month, as firms grapple with the new taxes.
On Saturday, the car manufacturer said it was working to “address the new trading terms” and was looking to “develop our mid to longer-term plans”.
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Jobs fears as Jaguar halts shipments
Referring to the tariffs, Sir Keir said “the immediate priority is to keep calm and fight for the best deal”.
Writing in The Sunday Telegraph, he said that in the coming days “we will turbocharge plans that will improve our domestic competitiveness”, adding: “We stand ready to use industrial policy to help shelter British business from the storm.”
It is believed a number of announcements could be made soon as ministers look to encourage growth.
NI contribution rate for employers goes up
From Sunday, the rate of employer NICs (national insurance contributions) increased from 13.8% to 15%.
At the same time, firms will also pay more because the government lowered the salary threshold at which companies start paying NICs from £9,100 to £5,000.
Also, the FTSE 100 of leading UK companies had its worst day of trading since the start of the pandemic on Friday, with banks among some of the firms to suffer the sharpest losses.
Sir Keir said: “This week, the government will do everything necessary to protect Britain’s national interest. Because when global economic sands are shifting, our laser focus on delivering for Britain will not. And these new times demand a new mentality.”
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Trump defiant despite markets
UK spared highest tariff rates
Some of the highest rates have been applied to “worst offender” countries including some in Southeast Asia. Imports from Cambodia will be subject to a 49% tariff, while those from Vietnam will face a 46% rate. Chinese goods will be hit with a 34% tariff.
Imports from France will have a 20% tariff, the rate which has been set for European Union nations. These will come into effect on 9 April.
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Sir Keir has been speaking to foreign leaders on the phone over the weekend, including French President Emmanuel Macron, Italian Prime Minister Giorgia Meloni and Australian Prime Minister Anthony Albanese, to discuss the tariff changes.
A Downing Street spokesperson said of the conversation between Sir Keir and Mr Macron: “They agreed that a trade war was in nobody’s interests but nothing should be off the table and that it was important to keep business updated on developments.
“The prime minister and president also shared their concerns about the global economic and security impact, particularly in Southeast Asia.”
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Trump’s warning
Mr Trump has warned Americans the tariffs “won’t be easy”, but urged them to “hang tough”.
In a post on his Truth Social platform, he said: “We are bringing back jobs and businesses like never before.
“Already, more than FIVE TRILLION DOLLARS OF INVESTMENT, and rising fast!
“THIS IS AN ECONOMIC REVOLUTION, AND WE WILL WIN. HANG TOUGH, it won’t be easy, but the end result will be historic.”
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