Story perspectives

New VAT on Private Schools Sparks Tuition Hikes and Debate

1/1/2026

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Summary

Story summary

A 20% VAT on private school tuition will generate about £40 million annually for the Treasury.
The Office for Budget Responsibility (OBR) revised forecasts, citing higher average earnings.
From January 2025, day-school fees are expected to rise by over £2,500, while boarding fees approach £6,000.
Conservative MP Saqib Bhatti calls the policy anti-aspiration and warns of closures.
Education Secretary Bridget Phillipson supports the tax, saying it promotes fairness.

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Story summary

A 20% VAT on private school tuition will generate about £40 million annually for the Treasury.
The Office for Budget Responsibility (OBR) revised forecasts, citing higher average earnings.
From January 2025, day-school fees are expected to rise by over £2,500, while boarding fees approach £6,000.
Conservative MP Saqib Bhatti calls the policy anti-aspiration and warns of closures.
Education Secretary Bridget Phillipson supports the tax, saying it promotes fairness.