Could Labour’s plan to put VAT on private schools lead to parents ‘Finding Religion’

Ah, Labour, that beacon of fairness and redistribution, has once again given us a stroke of genius. This time, the plan is to impose a VAT on private schools, those bastions of privilege and first-class education.

Now, while the sight of Eton and Harrove pupils writhing in fear at the prospect of rising tuition fees may bring a wry smile to many, the implications of such a policy deserve closer study. Will it lead to more secular parents “suddenly turning to religion” to secure their children’s places in church schools, and thus avoid the financial blow? It is an intriguing, if somewhat cynical, possibility.

Labour’s proposal to impose a VAT on private school fees is not without merit. The aim is clear: to generate revenue and level the playing field. Private schools, with their vast resources, extensive facilities and polished alumni networks, embody the glaring inequalities within the British education system. In theory, adding 20% ​​to already exorbitant fees could shift some money to the underfunded state sector, potentially improving the quality of education for many, not just the privileged few.

But, as with many well-intentioned policies, the devil is in the details. Private school parents are highly resourceful. Faced with the prospect of higher fees, one can imagine a scenario in which their quest for affordable, high-quality education leads them to the doors of the Church of England – or any religious institution that offers state-funded education. Church schools have a reputation for maintaining rigorous academic standards, and often rival their private counterparts.

Are we on the cusp of a religious awakening, not a spiritual awakening but a financial awakening? Picture the scene: A PTA meeting filled with parents who until yesterday couldn’t tell the difference between a psalm and a parable, now eagerly attend Sunday Mass, volunteer at church events, and dust off old confirmation certificates. Ironic, perhaps, but not far-fetched.

Church schools, with their dual commitment to education and moral guidance, have long been a favorite alternative for parents looking for more than what regular state schools offer. These highly sought-after institutions already have strict selection criteria, often giving priority to children from practicing Christian families. In responding to the sudden influx of new “believers,” churches can find themselves overwhelmed with applications, leading to a funny, if somewhat uncomfortable, scenario of competitive piety.

I can relate to this from a cognitive standpoint, having been a prefect for a time at the high school I attended as a child. More than a decade ago there were rumors that parents would go to church or synagogue for a “required” amount of time just to get the required “green stamp” letter from the pastor or rabbi, and then their faith would strangely evaporate as soon as little Johnny or Jane packed their backpack for their first day of school.

This potential rise in pseudo-religiosity raises many questions. On the one hand, it challenges the integrity of the educational and religious institutions involved. Schools may find their ethics diminished by families whose primary motivation is financial rather than spiritual, which could undermine the societal values ​​that define these institutions. For churches, the ethical dilemma of accommodating these new “members” could strain their resources and alter their congregational dynamics.

Moreover, this shift could exacerbate existing inequalities within the state system. Church schools, which already have more involved parental bodies and additional funding, could become even more exclusionary, leaving truly inclusive schools to deal with a disproportionate share of the challenges associated with educating diverse and often disadvantaged populations. Ironically, the very goal of Labour’s policy – ​​reducing inequality – could lead to a new form of apartheid.

Of course, some might argue that parents will always find ways to manipulate the system to their advantage, and that church schools have long been part of this landscape. The new policy will only add another layer to the complex interplay between education, economics, and faith. However, the broader societal implications cannot be ignored. Encouraging dishonest behavior in pursuit of educational advantage sends a disturbing message about the value we place on honesty and integrity.

Some might argue that the real solution lies not in punitive taxes but in real investment in the public sector. Reducing class sizes, improving teacher pay, and improving educational facilities—all of these changes would create real equality for all. And if public schools were properly funded and resourced, the appeal of private and church schools would naturally diminish, making the educational landscape more equitable without resorting to financial trickery.

Labour’s plan to impose a value-added tax on private school fees may thus seem like a step toward greater fairness, but it risks unintended consequences. The specter of parents “turning to religion” to secure a better education for their children highlights the complexity of this issue. Rather than pushing families to dishonestly demonstrate their beliefs, we need a more comprehensive approach to education reform – one that ensures that all schools, regardless of their funding model, are able to provide an excellent education. Only then can we hope to create a truly level playing field for all our children.


Richard Alvin

Richard Alvin is a serial entrepreneur, former UK government small business adviser and Honorary Teaching Fellow in Business at Lancaster University. He is the winner of the London Chamber of Commerce Entrepreneur of the Year award and a City of London Freelancer for services to business and charity. Richard is also Group Managing Director of Capital Business Media and Trends Research, an SME business research company, and is one of the UK’s leading experts on the SME sector, an active angel investor and start-up advisor. Richard is also the host of Save Our Business, a US-based business advice TV show.

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