Politics

Labour to add VAT to private school fees within first year if elected

Published

2 years ago

September 26, 2023

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Labour will add VAT to private school fees within its first year of government if it wins the next general election.

The party said it does not plan to “phase in” the change over several academic years if it enters Downing Street.

Instead, it is understood it will end the controversial tax breaks enjoyed by independent schools as soon as it possibly can.

According to the i paper, which first reported on the story, this means private school fees could be hit with a 20% increase as soon as the first academic year after the election – which is due to take place before the end of next year.

Labour estimates this could raise £1.7bn to invest in state schools.

Party chair Anneliese Dodds told Sky News: “At the moment, 90% of kids go to schools that are not private. We need to be gathering the money from somewhere in order to (raise standards). We’ve been really upfront about this.”

She added: “We need to see that change and what Labour will never do is have an unfunded policy. We had that with Liz Truss. We saw the impact on our economy.”

Asked if it was fair to parents who “scrimp and save” to send their children to private school, Ms Dodds insisted it would not lead to a drop in attendance.

She said: “We’ve actually seen over the last 20 years, the fees that private schools charge going up pretty much year on year, often above inflation.

“There’s not been any drop-off in the number of students and pupils attending those schools. In fact, the number of pupils at those schools has gone up over time.”

Labour leader Sir Keir Starmer has previously pledged that a government led by him would strip private schools of their charitable status, which makes them eligible for tax relief and business rate discounts.

Last year he used the policy to launch a personal attack on Prime Minister Rishi Sunak, who attended the £49,000-a -year Winchester College.

Many Conservatives are opposed to the plan, arguing it will force more parents to send their children to state schools, piling extra pressure on the system.

Teachers within the independent sector have also warned it is likely to have a disproportionate impact on the smaller and medium sized private schools compared to the most prestigious ones like Winchester and Eton.

Julie Robinson, the chief executive of the Independent Schools Council, told the i: “We would urge Labour to take note of the real concerns that many across education have raised, particularly the effect their policy would have on children in smaller schools, in faith schools, children on bursaries, and pupils with special educational needs.”

Warnings of a mass exodus were dismissed in a report by the independent Institute for Fiscal Studies (IFS) in July, which said the policy would have “a relatively limited effect” on pupil numbers.

The report also said the gap between private school fees and state school spending per pupil has more than doubled since 2010, when it was about 40% or £3,500.

It said in 2022/2023, the average private school fees across the UK were £15,200. The report said this is £7,200 or nearly 90% higher than state school spending per pupil.

A Labour Party spokesperson said it makes “no apology for relentless focus on how to drive high and rising standards in our state schools”.

“Because we are the party of fair taxes, we will end the unjustifiable tax break afforded to private schools and fund recruitment of over 6,500 more teachers and put access to mental health counselling in every school.”

Politics

Farage criticised for failing to ‘stand up to idol’ Trump over autism claim

Published

58 mins ago

September 24, 2025

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Farage criticised for failing to 'stand up to idol' Trump over autism claim

Nigel Farage has refused to criticise Donald Trump for claiming pregnant women who take paracetamol risk causing autism in their child – saying “science is never settled”.

The Reform UK leader was asked by Nick Ferrari on LBC whether the US president was right to make the link, which UK health officials have discredited.

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He replied: “I have no idea … you know, we were told thalidomide was a very safe drug and it wasn’t. Who knows, Nick, I don’t know.”

Mr Farage, who is a friend of Mr Trump, said the president has a “particular thing about autism – I think because there’s been some in his family, he feels it very personally”.

Asked if he would side with medical experts who have said there is no evidence for the link, Mr Farage said: “I wouldn’t, when it comes to science, I don’t side with anybody.

“I don’t side with anybody, you know, because, because science is never settled, and we should remember that.”

Pressed again on whether it was irresponsible to make that link as US president, Mr Farage replied: “That’s an opinion he’s got. It’s not one that I necessarily share. But I mean, honestly, I’ve no idea.”

On Monday, the US president claimed there had been a “meteoric rise” in cases of autism and suggested the use of Tylenol – an American-branded version of paracetamol – during pregnancy is a potential cause.

UK health experts and officials have pushed back hard on the claim, saying there is “no evidence” for it – including Health Secretary Wes Streeting, who said that “I trust doctors over President Trump, frankly, on this”.

Speaking on ITV’s Lorraine, Mr Streeting said: “I’ve just got to be really clear about this: there is no evidence to link the use of paracetamol by pregnant women to autism in their children. None.”

The health secretary then referenced a major study in Sweden last year that involved 2.4 million children, adding it “did not uphold those claims”.

He added: “I would just say to people watching, don’t pay any attention whatsoever to what Donald Trump says about medicine.

“In fact, don’t take even take my word for it, as a politician – listen to British doctors, British scientists, the NHS.”

The health secretary also took aim at Mr Farage over his failure to criticise the US president, saying he had “no idea and no backbone”.

He referred to a separate controversy in which Dr Aseem Malhotra, a vaccine-sceptic doctor, told the Reform Party conference that the COVID vaccine gave the royal family cancer.

“Anti-science, anti-reason, anti-NHS,” Mr Streeting said.

A spokesperson for Reform UK said: “Dr Aseem Malhotra is a guest speaker with his own opinions who has an advisory role in the US government. Reform UK does not endorse what he said but does believe in free speech.”

The Liberal Democrats also criticised Mr Farage, accusing him of wanting to impose Mr Trump’s “dangerous anti-science agenda here in the UK”.

A spokeswoman said: “Peddling this kind of nonsense is irresponsible and wrong.

“It seems Farage would rather see pregnant women suffer in pain than stand up to his idol Donald Trump.”

Politics

Stablecoins vs. credit cards: The coming $100B US payments battle

Published

2 hours ago

September 24, 2025

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Stablecoins vs. credit cards: The coming 0B US payments battle

Can stablecoins disrupt Visa and Mastercard? Explore how blockchain payments may capture billions in fees from US credit card networks.

Politics

Donald Trump is ‘racist, sexist and Islamophobic’, says Sadiq Khan amid feud with US president

Published

2 hours ago

September 24, 2025

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Donald Trump is 'racist, sexist and Islamophobic', says Sadiq Khan amid feud with US president

Sadiq Khan has branded Donald Trump “racist, sexist, misogynistic” and “Islamophobic” following the US president’s latest attack on London.

The London mayor said he was “living rent free” in Mr Trump’s head after the US president used his address to the UN General Assembly on Tuesday to criticise the UK, and London specifically.

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The president continued his long-running criticism of Mr Khan and told delegates the UK capital was being run by a “terrible mayor” who had “changed” the city.

One of his most outlandish claims was that London wanted to operate under Sharia law, Islam’s legal system – something there is no evidence for.

The president said: “I look at London, where you have a terrible mayor, terrible, terrible mayor, and it’s been changed, it’s been so changed.

“Now they want to go to Sharia law. But you are in a different country, you can’t do that.”

Asked about the attacks made by the US president, who enjoyed his second state visit to the UK last week, Sir Sadiq said: “I think President Trump has shown he is racist, he is sexist, he is misogynistic, and he is Islamophobic.”

He went on to say the public would be “wondering what it is about this Muslim mayor who leads a liberal, multicultural, progressive, successful city that means I appear to be living rent-free inside Donald Trump’s head”.

“When people say things, when people act in a certain way, when people behave in a certain way, you’ve got to believe them,” he added.

Mr Trump has also blamed crime in London – which he said was “through the roof” – on Sir Sadiq’s leadership, and said he had also been a “disaster” on immigration.

The president’s comments, which he made on Air Force One on the way back to Washington from London after the state visit, prompted a spokesperson for the mayor to issue a staunch defence of the city.

“London is the greatest city in the world, safer than major US cities, and we’re delighted to welcome the record number of US citizens moving here,” they said.

Sir Sadiq and Mr Trump have long had a thorny relationship, dating back to the president’s call in 2015 for a total and complete shutdown” of Muslims entering the US before he assumed office.

The London mayor’s approach to Mr Trump comes in stark contrast to his Labour government colleagues, who have sought to keep the US president on side over issues including trade and tariffs.

The UK steel industry has been hit with 25% tariffs, as opposed to the 50% that has been levied on other countries.

The relationship between Mr Trump and Sir Sadiq presented the prime minister with an awkward moment during an hour-long news conference when the president visited Scotland in July.

Mr Trump called Sir Sadiq a “nasty person” who has done “a terrible job” – to which Sir Keir interjected with a laugh: “He’s a friend of mine.”

The president added: “I think he’s done a terrible job but I will certainly visit London, I hope so.”