Labour VAT raid on private school fees ‘could hit state music lessons, private tutoring…


Music lessons, private tutoring and nurseries could fall into Labour’s controversial education tax, MPs have been warned.

Tory education spokesman Damian Hinds suggested that the Government could end up adopting the private school VAT fees plan to hit other forms of learning.

During a Commons debate, he said Labour had ‘not thought through the consequences’ of its incoming 20 per cent levy – which will apply from January 1.

Labour says the revenue raised will pay for 6,500 teachers in the state sector.

But Mr Hinds countered: ‘The principle of ‘no tax on learning’ is a fast one. And once you loosen it, you don’t know where you’ll go. Where might the Treasury look next? Private nurseries, perhaps? Music lessons? Private tutoring?

‘What actually is the philo­sophical difference between independent school education and private tutoring?’

Secretary of State for Education and Minister for Women and Equalities Bridget Phillipson (pictured) speaking during the Labour Party Conference 2024 

Most music teachers and private tutors that currently operate independently and charge families directly are VAT-exempt. It is unclear whether the Government would later seek to change this.

There are also fears that pre-schoolers in small, private nurseries that enrol reception and nursery-age children would be pulled into the tax.

Nurseries will be exempt, but Labour defines this as being ‘composed wholly of children who are under compulsory school age (five years old)’.

It means fees for three-year-olds might be subject to VAT if they are in the same class as five-year-olds.

Mr Hinds added: ‘Already it is a Government in chaos. A chaos exemplified by this destructive, disruptive and divisive education tax which will interrupt learning [and] create place demand where it cannot be accommodated.’

UK Shadow Education Secretary Damian Hinds (pictured) suggested that the Government could end up adopting the private school VAT fees plan to hit other forms of learning

UK Shadow Education Secretary Damian Hinds (pictured) suggested that the Government could end up adopting the private school VAT fees plan to hit other forms of learning

Most music teachers and private tutors that currently operate independently and charge families directly are VAT-exempt (stock image of a music lesson)

Most music teachers and private tutors that currently operate independently and charge families directly are VAT-exempt (stock image of a music lesson) 

During the debate, Treasury minister James Murray admitted he ‘recognised’ that ‘some pupils may subsequently move into the state education sector as a result of these policies’. However, he insisted it would be a ‘small proportion’ and they would be ‘accommodated’.

He also claimed ‘most schools’ would be able to ‘absorb’ some or all of the VAT cost to keep fees low for parents.

Munira Wilson, education spokesman for the Lib Dems, said that ‘education should simply not be taxed’ because it is for ‘public good’.

Education Secretary Bridget Phillipson was not present for the debate, which Mr Hinds branded ‘disappointing’.

MPs also brought up an online comment made by Ms Phillipson at the weekend, in which she shared an article about private schools cutting down on embossed, branded stationery to prepare for the VAT scheme.

She wrote: ‘Our state schools need teachers more than private schools need embossed stationery. Our children need mental health support more than private schools need new pools.’

Conservative MP Luke Evans yesterday said: ‘This reeks of prejudice and propagates a class war and I’m sorry to say that she isn’t here to defend that.’

The debate was called by the Tories, who urged the Government to produce an impact assessment ahead of the Budget on October 30.

A Government spokesman said: ‘Music lessons, private tutoring and nurseries from third parties are not captured by the draft legislation and we have no intention of bringing them into VAT.’



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