Labour's private school VAT raid has failed to fund 6,500 new teachers, education chief says

A leading education group says Labour's VAT raid on private schools has not delivered the promised funding for 6,500 new state-school teachers, despite pledges that money raised from levying VAT on fees would expand the state workforce. Philip Britton, the current chair of the Heads’ Conference, said there had been no wider benefit to state education from the tax and called for a proper impact assessment on young people and local economies.

Since the policy took effect in January, the Independent Schools Council estimates that 81 private schools have closed, with more closures expected as costs rise. About 25,000 pupils have been forced out of the sector, underscoring the broader disruption cited by critics. Britton, whose organization represents the most prestigious independent schools in the UK and internationally, argued that VAT payments have drained money from local economies and questioned what impact the revenue would have on funding for state schools locally. He also criticized the government for shifting explanations about where the money goes, noting that the stated purpose of the VAT measure was to hire 6,500 additional teachers for the state sector, a purpose he says has not been delivered.

Britton warned that the policy’s benefits appear elusive and noted that the government’s handling of the revenue source has been opaque. He pointed to a High Court judgment earlier this year that clarified the change was a tax, not a tax break, and urged the administration to acknowledge the commitment as it was written in its manifesto. The head of Bolton School, where Britton has served for 17 years, emphasized that the framing of the measure as tax relief obscured the fiscal impact and suggested that the public should be told the truth about its consequences for education funding and local economies.

The government, meanwhile, has defended the policy as part of its broader effort to fund public services. A spokesman asserted that the administration remains on track to recruit the targeted 6,500 teachers, pointing to more than 2,300 additional secondary and special school teachers in classrooms this year and noting that about 1,300 fewer teachers have left the profession, a relatively low turnover rate by historical standards.

The controversy has been amplified by political rivals. Labour's position has drawn scrutiny as recruitment plans were delayed; observers noted a disconnect between the party’s pledge and day-to-day staffing figures. Shadow Education Secretary Laura Trott said it was unsurprising that Labour had postponed detailing how to deliver the pledge given that the education sector has seen a net decline in teacher numbers since Labour took office. Trott also cited what she described as a pattern of broken promises from the Labour Party, including assertions that taxing education would fund 6,500 new teachers while the Prime Minister has suggested revenue might be directed toward housing policy instead.

Updated data show that 41,200 teachers left the profession in the 2023/24 academic year, roughly 10 percent of the workforce, a figure cited by critics as evidence of broader staffing challenges in schools. Proponents of the policy argue that the VAT change remains a necessary step to bolster public services, while critics contend it imposes new costs on private schools that ultimately affect families, local economies, and the availability of private-sector educational options.

A Government spokesman reiterated the administration’s stance, asserting that recruitment of 6,500 teachers is underway and that the new hires will bolster both state and non-state settings where appropriate. The official highlighted ongoing efforts to strengthen the teacher workforce, including steps to reduce turnover and improve classroom support, while acknowledging ongoing debates over how revenue from private-school VAT should be allocated and measured.