Here's how
@bphillipsonMP is misleading you in the tweet below. 👇🏻
Education is a 'merit good', which means that it simultaneously benefits both the immediate recipient and society in general.
This justifies both 1) tax exemptions and reliefs for private schooling; and 2) state education that is fully subsidised by the taxpayer.
Labour's policy undermines private schooling (but notably not other forms of private education) by imposing VAT on fees paid by the families of pupils and by cutting relief on Business Rates paid by the schools.
Both have the effect of driving up the total price of private schooling, making it less affordable and therefore more exclusive, but there are important differences between VAT and Business Rates.
Schools are liable for Business Rates in full subject to the relief, so the relief can properly be regarded as a 'tax break' *for schools*, although it should also be remembered that schools pay their taxes out of the fee income that they receive, so Business Rates is effectively an indirect tax on fee-paying families.
The VAT exemption means that there is never any liability for VAT from which relief might be granted, so there is no basis on which to regard it as a tax break.
Now, note that Phillipson carefully refers to "tax breaks that *private schools* enjoy". She may be right about that with regard to Business Rates relief, but she would be wrong to say the same about fee-paying families, so she doesn't. That is a telling omission.
Phillipson then immediately seeks to extol the purported benefits of the
#EducationTax policy as a whole, conflating the Business Rates point with the VAT point.
This gives oxygen to the popular lie that the VAT exemption is an unfair and unjustifiable tax break for fee-paying families. Don't fall for it.
The fact that the Education Secretary uses this sleight of hand speaks volumes. If she won't discuss her own policies accurately and transparently, she can't be trusted.
Always keep an eye on what people don't mention.
#EducationNotTaxation
📤 Ending the tax breaks private schools enjoy
🫵 Extra resources for frontline public services and greater investment in state schools to drive up standards for your children – more teachers, more mental health support, more careers advice, more work experience.