France and Germany have attacked Labour’s plan to levy VAT on private school fees, saying it could force hundreds of pupils out of international schools.
French ambassador Hélène Duchêne warned the controversial tax raid threatened Sir Keir Starmer’s attempt to ‘reset’ diplomatic relations between Britain and the EU.
The policy was also criticised by her German counterpart, Miguel Berger, who said fee-paying international schools – which are partly funded by foreign governments – were ‘totally distinct’ from regular private schools so should be exempt.
Sir Keir plans to remove the VAT exemption on school fees from January under a ‘red meat’ policy that will land parents with an additional 20 per cent charge if schools choose to pass it on in full.
Diplomats warn that 25 to 30 per cent of the 6,300 pupils at 11 French schools in Britain and 20 to 25 per cent enrolled at The German School in London could be forced to leave because their parents can no longer afford the fees.
French ambassador Hélène Duchêne warned the controversial tax raid threatened Sir Keir Starmer’s attempt to ‘reset’ diplomatic relations between Britain and the EU
Sir Keir plans to remove the VAT exemption on school fees from January under a ‘red meat’ policy that will land parents with an additional 20 per cent charge if schools choose to pass it on in full
Ms Duchêne told The Financial Times that VAT on international school fees was ‘not in line with the reset to our relationship which the British government has instigated’ – a reference to Sir Keir’s referring to Starmer’s stated desire to improve post-Brexit ties with European countries.
International schools are popular options for the families of diplomats and for wealthy business people who are working in the UK but want to ensure their children have qualifications that are valid in their home countries.
The ambassador warned that adding VAT on school fees ‘could be an issue’ for French companies who need the schools for employees working temporarily in Britain.
The most prominent French school in the UK is the Lycée Français Charles de Gaulle, in west London, which charges yearly fees of up to £16,923.
Miguel Berger also slammed Sir Keir’s proposed tax raid and requested an exception for the UK’s only German school, Deutsche Schule London in Richmond.
He told The Times: ‘We have one German school in Richmond and worldwide we have 136. We have around 900 pupils. It’s very difficult to make an assessment but we have heard that between 20 and 25 per cent might be obliged to leave the school.
‘The German state covers 30 per cent of the costs of the school and 50 per cent of the investment, so there is a lot of state funding that goes into the school.
‘For expats coming here for two, three or four years wanting their children to go back to the national system, their only option is to go to these schools.’
More than 100,000 children with special needs will be hit by Labour’s plan to slap VAT on private schools after the Education Secretary ruled out giving them an exemption.
Bridget Phillipson said over the weekend that Labour was determined to press ahead with the controversial tax raid in this week’s Budget to fund additional teachers in state schools.
She said that only the small minority of special needs children with a formal education health and care plan (EHCP) statement would be spared the hike.
The most prominent French school in the UK is the Lycée Français Charles de Gaulle, in west London, which charges yearly fees of up to £16,923
Miguel Berger also slammed Sir Keir’s proposed tax raid and requested an exception for the UK’s only German school, Deutsche Schule London in Richmond
The designation, handed out by local authorities, covers fewer than 8,000 of the estimated 111,000 children with special needs taught in private schools, whose parents face a potential 20 per cent rise in fees from January.
Ms Phillipson acknowledged that many parents feel ‘desperately let down’, adding: ‘I will deliver a better state sector for children to make sure that there is more specialist support within mainstream settings.’
But she told the BBC only those with an EHCP statement would be exempted ‘because that’s where a need has been determined through that process’.
The Education Secretary said private schools ‘have choices’ about whether to pass on the 20 per cent VAT hike or absorb it themselves.
Shadow education secretary Damian Hinds called on Labour to rethink the ‘flawed’ tax, saying it would have a heavy impact on state schools forced to account for private school children whose parents can no longer afford the fees.
He added: ‘Even if the Government does insist on going ahead, a wider group of children with special needs ought to be exempted – not just those with an EHCP naming a school.’
Whitehall sources yesterday indicated, however, that military families with private school children could be thrown a lifeline by Ms Reeves in the Budget after ministers accepted the argument that many have little other option.
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