Labour’s VAT Raid on Private Schools: A Lesson in Cronyism and Cooked-Up Calculations

Ladies and gentlemen, let me take a moment to express my profound concern—and dare I say, bewilderment—at the latest revelation surrounding Labour’s much-touted private school VAT raid.

The policy, set to come into effect in 2025, has been defended by Sir Keir Starmer and his party using none other than a report authored by one Luke Sibieta from the Institute for Fiscal Studies (IFS). So far, so standard, right? Wrong.

As it turns out, Mr. Sibieta is not just any independent expert—he happens to be a close personal friend of Matthew Pennycook, a minister in the Department for Levelling Up, who, coincidentally, is responsible for implementing this very VAT policy. To make matters even cosier, Mr. Pennycook was reportedly best man at Mr. Sibieta’s wedding.

Now, forgive me for raising an eyebrow, but when a government minister’s close friend authors the report that forms the backbone of a major fiscal policy, it reeks less of impartiality and more of cronyism. Yes, cronyism—the very thing Labour has been so quick to wag their sanctimonious fingers at from atop their high horse in recent years.

Now, forgive me for raising an eyebrow, but when a government minister’s close friend authors the report that forms the backbone of a major fiscal policy, it reeks less of impartiality and more of cronyism.

So, let’s examine the facts to be sure: Labour’s VAT raid on private schools is being propped up by this report, which claims that the policy will have minimal impact on state schools while raising a staggering £1.5 billion for the Treasury. This figure, repeatedly trumpeted by Starmer and his colleagues, represents the upper estimate. But, as with all things in life, we must ask—at what cost?

You see, Labour insists that only 3–7 per cent of private school students, some 20,000 to 40,000 pupils, will be forced out of private education due to this tax. But we must remember, the very think tank that produced this figure is intimately connected to one of the ministers overseeing the policy. Moreover, this so-called “minimal impact” is already being challenged. The Independent Schools Council (ISC) recently revealed that 10,000 fewer pupils have enrolled at private schools this September compared to last year—before the VAT policy has even come into force.

And what happens when these students flood into state schools? Larger class sizes, more strain on already overstretched resources, and a significant disruption to the very pupils Labour claims to be helping. One does not need an Eton education to realise this will place enormous pressure on a state school system that is already bursting at the seams.

Moreover, this IFS report fails to take seriously the real-world consequences. The Independent Schools Council (ISC), has been blunt in their assessment saying parents are already pulling their children out of independent schools, and the impact on smaller schools could be devastating. Many are at risk of closure, and what Labour has failed to grasp is that these schools aren’t the preserve of the elite but serve ordinary families across the country.

One does not need an Eton education to realise this will place enormous pressure on a state school system that is already bursting at the seams.

But the most troubling aspect is the political convenience of this report. The IFS, in its defence, claims to be politically independent, and I will not cast aspersions on the institution as a whole. Yet, it is hard to ignore the cosy relationship between Mr. Sibieta, who authored the report, and Mr. Pennycook, who is involved in implementing the policy. The fact that the best man at your wedding is the one producing the research for your department’s policy raises serious questions about the integrity of this whole endeavour.

This is not just a case of bad optics; this is about transparency and fairness in government decision-making. When Labour is leaning so heavily on a report penned by a friend of the minister, how can we be sure that the full picture is being presented? Are we being told the truth, or is this just another example of fiscal fantasy wrapped in political spin?

And let us not forget the strategic implications. The Treasury document, published in July, made it clear that Mr. Pennycook’s department would play a key role in rolling out this tax raid. But if this policy backfires, and thousands more students flood into already overcrowded state schools, what will be the result? I daresay we will see Labour’s VAT raid backfire spectacularly, to the detriment of parents, pupils, and teachers across the country.

So, where do we stand? On the one hand, we have Labour’s grand promises of funding education, and on the other, we have a policy propped up by a report written by a man who is so close to the policy’s overseers that he could practically call them family.

While Labour may claim they’re standing up for the education system, what we’re really seeing is a masterclass in cronyism. If this VAT raid is their big idea, they might want to reconsider who’s doing their homework. The British people deserve policies that pass the test of scrutiny, not backroom deals and friendly favours.

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Claire Bullivant, Editor

editor@conservativepost.co.uk

Claire is the founder and editor of the Conservative Post and was a co-founder of the Conservative Democratic Organisation. Claire is now setting up www.GreatBritishPAC.com. Pre-register today.