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Could Labour’s plan to impose VAT on private schools lead to parents ‘finding religion’?

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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.

Ah, the Labor Party, once the beacon of fairness and redistribution, has once again graced us with a stroke of genius. This time it is a plan to impose VAT on private schools, those bastions of privilege and top education.

While the sight of Etonians and Harrovians squirming at the prospect of higher fees may put a grin on the faces of many, the ripple effects of such a policy deserve further examination. Could this lead to a wave of secular parents suddenly ‘finding religion’ to secure a place for their children in church schools, thus dodging the financial blow? It’s a fascinating, if somewhat cynical, possibility.

Labour’s proposal to impose VAT on private school fees is not without merit. The intention is clear: generate income and create a level playing field. Private schools, with their vast resources, extensive facilities and polished alumni networks, epitomize the deep inequality within the British education system. Adding 20% ​​to already high tuition fees could theoretically divert some of the money to the underfunded state sector, improving the quality of education for many, not just the privileged few.

But like many well-intentioned policies, the devil is in the details. Private school parents are resourceful. Faced with the prospect of even higher tuition fees, one can imagine a scenario where the search for affordable yet high-quality education leads them to the gates of the Church of England – or indeed to any religious institution that provides state-funded education offers. After all, church schools have a reputation for maintaining strict academic standards that often conflict with their private counterparts.

So are we on the eve of a religious revival, spurred not by a spiritual awakening but by a fiscal revival? Picture the scene: the PTA meeting packed 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? Maybe. But far from unlikely.

Church schools, with their dual commitment to education and moral education, have long been a preferred alternative for parents who wanted more than what the average state school has to offer. These institutions, which are often oversubscribed, already apply strict selection criteria, with priority often given to children from practicing Christian families. In response to a sudden influx of new “believers,” churches could be inundated with requests, leading to a comical, if somewhat uncomfortable, scenario of competitive piety.

I am able to speak about this broadly from the point of view of knowledge because I was for a period the director of the secondary faith school that I attended while growing up. As was the case even more than a decade ago, there were rumors that parents were going to church or synagogue for the “required” period just to get the requisite “Green Stamp” letter from the pastor or rabbi and that their faith strangely evaporated when the little Johnny or Jane had packed their suitcases. school bag on their first day.

This potential increase in fake religiosity raises several questions. First, it calls into question 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 shared values ​​that define these institutions. For churches, the moral dilemma of accommodating these new “members” could strain their resources and change the dynamics of their congregation.

Moreover, this shift could worsen existing inequalities within the state system. Church schools, already advantaged by more involved parent organizations and additional funding, could become even more exclusive, leaving real school districts to address a disproportionate share of the challenges associated with educating diverse and often underserved populations. The very aim of Labor 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 part of this landscape. The new policy would only add another layer to the complex interplay of education, economics and faith. Yet the broader social implications cannot be ignored. Encouraging disingenuous behavior in the pursuit of educational advantage sends a disturbing message about the value we place on honesty and integrity.

The real solution, you might say, lies not in punitive taxes, but in real investment in the state sector. Smaller class sizes, better teacher salaries, improved facilities – these are the changes that can truly level the playing field. Of course, if state schools were adequately financed and financed, the appeal of private and church schools could diminish, making the educational landscape more equitable without resorting to fiscal tricks.

So while Labour’s plan to impose VAT on private school fees may seem like a step towards greater fairness, it risks creating unintended consequences. The specter of parents ‘seeking religion’ to secure a better education for their children highlights the complexity of the issue. Rather than pushing families into insincere displays of faith, a more comprehensive approach to education reform is needed—one that ensures that 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, former adviser to the UK government on small business and an Honorary Teaching Fellow on Business at Lancaster University. Winner of the London Chamber of Commerce Business Person of the year and Freeman of the City of London for services to business and charities. Richard is also Group MD of Capital Business Media and SME business research firm Trends Research, regarded as one of the leading experts in the SME sector in Britain and an active angel investor and advisor to start-up companies. Richard is also the host of Save Our Business, the US-based business advice television show.