This will now mean that the Labour government will be able to channel more of the funds raised into the state sector.
The Labour government’s decision to impose VAT on private school fees is set to raise more money than initially predicted.
The party’s manifesto pledge to impose VAT on private school fees proved hugely popular among party members despite the right-wing press trying to whip up a moral panic over the issue.
According to the Telegraph, the tax hike is actually set to raise more revenue for the Treasury than forecast, after schools raised fees for families by more than expected.
The paper cites Treasury sources and reports: “Treasury sources told The Telegraph that despite more pupils moving into the state sector than predicted, ministers believe they are “on track to raise the revenue forecast if not slightly exceed it”.
Following a more than expected rise of around 14% in school fees in January based on The Telegraph’s analysis of 964 schools in England, Scotland and Wales, parents faced an average fee increase of more than £2,500 for day schools and almost £6,000 for boarding schools, meaning that the VAT imposed on free school fees has raised more money than thought.
This will now mean that the Labour government will be able to channel more of the funds raised into the state sector.
Basit Mahmood is editor of Left Foot Forward
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