Suggestions that Bedford’s private schools could “collapse” if an in-coming Labour government imposes 20% VAT on school fees have proved unfounded.
Read: Reform UK candidate says VAT on school fees could “impact every child in Bedford”
Labour’s manifesto states it will raise £1.5billion by applying VAT and business rates to private schools which are currently exempt.
They say the money raised will be used to pay for 6,500 expert teachers, improve training for headteachers and create 3,300 nurseries in primary schools to boost the availability of childcare.
But opposition candidates have claimed that the impact on state school admissions could be devastating.
In the council executive meeting on Wednesday, 19 June, Mayor Tom Wootton (Conservative) raised the question with the portfolio holder for education, Councillor Jane Walker (Conservative).
He said, “Last week at the hustings, school fees were discussed lots and lots and lots and it was talked about at length.”
Cllr Walker said she had asked council officers to see if there had been an increase in the number of late admissions and conceded that the Borough had, “very, very limited places in our secondary schools”.
Skewed statistics
However, the Bedford Independent has seen WhatsApp messages that suggest if there is a rise in state school application numbers, it could be skewed by private school parents who have no intention of sending their children to Borough-run schools.
The viral WhatsApp message, which appears to have originated in northwest London and has been circulated among local residents, urges parents of privately educated children to register their children for state school places, even if they have no intention of moving them.
However, a source at a state primary school in the Borough has told the Bedford Independent that their admissions for 2024/25 have been unaffected.
A spokesperson for the Harpur Trust, which oversees Bedford School, Bedford Girls’ School, Bedford Modern School and Pilgrims, confirmed: “Admissions numbers are still changing (as they do each year) so it is too early to state what the impact might be from the proposed plans.”
The WhatsApp message says the aim of the endeavour is to “panic” teaching unions who they hope will then block the manifesto pledge.
Daniel Kebede, general secretary of the National Education Union (NEU), told the Bedford Independent: “The NEU will fight any employer attempting to use Labour’s VAT policy as an excuse to erode the terms and conditions of our hard-working members.
“We will vigorously defend teachers and support staff who work in these institutions with sustained strike action should an employer make such a mistake.”
Bedford Greenacre Independent School, which will open its new Manton Lane site in Spring 2025, described The Labour Party’s plan to introduce VAT to fee-paying schools as “a concern”, but said, “governors are looking at creative ways in which to mitigate the financial impact without compromising provision and our parents have already been consulted.
“A marketing analysis recently took place, looking at where the school ranks in terms of fees both locally and nationally, with the result being that the fees at Bedford Greenacre are more affordable than most nationally and all locally.
“Value for money has always been a priority, whilst ensuring that teaching and learning is outstanding,” said the school’s spokesperson.
Fee rises
According to the Institute of Fiscal Studies (IFS), there has been a 20% real-terms increase in average private school fees since 2010 and a 55% rise since 2003.
The rise in fees has not significantly affected the share of pupils across the UK in private schools, which, says the IFS, has remained at around 6–7% for at least the last 20 years.
In its 2023 report ‘Tax, Private School Fees and State School Spending’, the IFS states, “If demand for private schooling reduces as a result of increases in post-tax fees, the additional tax revenue raised would likely be unaffected.
“This is because any reduced revenue from VAT on private school fees will likely be made up for by higher VAT revenues on other goods and services, holding overall consumer spending constant.
“If parents decided to stop paying for private school fees as a result of the extra VAT, this would release spending on fees that would likely be spent on other goods and services, thereby generating extra VAT revenues.”
New school opening in 2027
Earlier this year, approval was given by the Department for Education (DfE) for a brand new secondary school in Bedford Borough to be run by Advantage Schoools. It will provide an additional 750 state school places when it opens in 2027.
Stuart Lock, chief executive of Advantage Schools, which runs Bedford Free School, Elstow School and Queen’s Park Academy, told the Bedford Independent: “There are monthly meetings with the DfE, Bedford Borough Council and Advantage Schools to plan for the September 2027 opening of the new secondary school in Bedford.”
A Bedford Borough spokesperson said: “Bedford Borough Council has worked with the DfE on securing a new secondary free school in Bedford Borough.
“Bedford Borough continues to grow and so these places will support with ensuring we continue to have sufficient numbers of school places to meet demand.”
A Labour Party spokesperson said: “Labour believes in breaking down barriers for every child. After years of economic chaos from the Conservatives, we are being forced to make tough choices.
“Removing the VAT tax exemption on private schools will pay for much-needed extra resources in the state sector
“Throughout the past decade school fees have risen above inflation with little impact on pupil attendance. And schools will still have a choice on whether they pass on the cost of VAT changes to parents and families.”
