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


Ah, the Labour Party, ever the beacon of fairness and redistribution, has yet again graced us with a stroke of genius. This time, it’s a plan to slap a VAT on private schools, those bastions of privilege and top-tier education.

Now, while the sight of Etonians and Harrovians squirming at the prospect of higher fees might bring a smirk to the faces of many, the ripple effects of such a policy deserve a closer examination. Could this lead to a surge of secular parents suddenly ‘finding religion’ to secure a spot for their offspring in church schools, thus dodging the financial blow? It’s a fascinating, if somewhat cynical, possibility.

Labour’s proposal to levy VAT on private school fees is not without merit. The intention is clear: generate revenue and level the playing field. Private schools, with their vast resources, extensive facilities, and polished alumni networks, do embody the stark inequalities within the British education system. Adding 20% to the already hefty fees could theoretically divert some funds to the underfunded state sector, potentially improving the quality of education for the many, not just the privileged few.

However, as with many well-intentioned policies, the devil is in the details. Private school parents are a resourceful lot. Faced with the prospect of even higher fees, one can imagine a scenario where the quest for an affordable yet high-quality education leads them to the gates of the Church of England – or indeed any religious institution offering state-funded education. Church schools, after all, have a reputation for maintaining rigorous academic standards, often rivalling their private counterparts.

So, are we on the brink of a religious revival, spurred not by a spiritual awakening but by a fiscal one? Picture the scene: the PTA meeting replete with parents who, until yesterday, couldn’t distinguish between a psalm and a parable, now eagerly attending Sunday services, volunteering at church events, and dusting off their old confirmation certificates. Cynical? Perhaps. But far from improbable.

Church schools, with their dual commitment to education and moral instruction, have long been a preferred alternative for parents seeking more than what the average state school offers. These institutions, often oversubscribed, already have rigorous selection criteria, frequently prioritising children from practising Christian families. In response to a sudden influx of new ‘believers’, churches could find themselves inundated with applications, leading to a comical, if somewhat uncomfortable, scenario of competitive piety.

I am broadly able to speak about this from the point of knowledge having been a governor for period of the secondary faith school that I myself attended growing up. As even more than a decade ago rumours were that parents attended church or synagogue for the ‘required’ period just to obtain the requisite ‘Green stamp’ letter from the vicar or rabbi and then oddly their faith evaporated once little Johnny or Jane had packed their school bag on their first day.

This potential surge in faux religiosity raises several questions. For one, it challenges the integrity of both the educational and religious institutions involved. Schools may find their ethos diluted by families whose primary motivation is financial rather than spiritual, potentially undermining the communal values that define these establishments. For churches, the moral quandary of accommodating these new ‘members’ could strain their resources and alter their congregational dynamics.

Moreover, this shift could exacerbate existing inequities within the state system. Church schools, already advantaged by more engaged parent bodies and additional funding, might become even more exclusive, leaving the truly comprehensive schools to cope with a disproportionate share of the challenges associated with educating diverse and often disadvantaged populations. The very aim of Labour’s policy – to reduce inequality – could, paradoxically, result in a new form of segregation.

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

The real solution, one might argue, lies not in punitive taxation but in genuine investment in the state sector. Smaller class sizes, better teacher pay, improved facilities – these are the changes that can truly level the playing field. If state schools were sufficiently funded and resourced, the appeal of private and church schools might naturally wane, making the educational landscape more equitable without resorting to fiscal sleight of hand.

So whilst Labour’s plan to impose VAT on private school fees may seem like a step towards greater fairness, it risks triggering unintended consequences. The spectre of parents ‘finding religion’ to secure a better education for their children highlights the complexity of the issue. Rather than driving families to disingenuous displays of faith, a more comprehensive approach to education reform is needed – one that ensures all schools, regardless of their funding model, can 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, a former advisor to the UK Government about small business and an Honorary Teaching Fellow on Business at Lancaster University.

A winner of the London Chamber of Commerce Business Person of the year and Freeman of the City of London for his services to business and charity. Richard is also Group MD of Capital Business Media and SME business research company Trends Research, regarded as one of the UK’s leading experts in the SME sector and an active angel investor and advisor to new start companies.

Richard is also the host of Save Our Business the U.S. based business advice television show.





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