Labour grandee Geoff Hoon has defended his party’s controversial policy to charge VAT on private school fees, despite admitting he received a private education at no cost to his parents.
Speaking on GB News, Hoon argued that the policy is a “matter of principle”, stating that parents who send their children to private schools are currently benefiting from a taxpayer subsidy.
He claimed the “reality is that this affords a tax break to private education, and the taxpayer is subsidising private education”.
Hoon’s comments come as it emerged that a close friend of a government minister wrote a crucial report that Labour has repeatedly used to justify Prime Minister Sir Keir Starmer’s VAT raid on private schools.
Geoff Hoon defended Keir Starmer’s VAT raid on private schools
GB News / PA
Matthew Pennycook was best man at wedding of Luke Sibieta, who authored the IFS report on Labour’s plans. An IFS spokesperson said the body is a “politically independent research organisation” committed to the “highest standards of empirical analysis on important issues of public policy”.
They added: “Our report on VAT on private schools, like all our work, adheres to these standards of excellence and impartiality, laying out the evidence as it exists whilst making clear the limits of that evidence.”
Close friend of a government minister, Matthew Pennycook, wrote the crucial report that Labour has used to justify their VAT raid on private schools
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Addressing the report, Hoon pointed out that private school fees have been rising substantially in recent years without significantly affecting parents’ decisions.
He explained: “The reality is that fees for private education have been increasing year on year well above the rate of inflation. That doesn’t appear to have any impact on the numbers of people sending their children to private education.”
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Hoon told GB News that he received a 100 per cent scholarship to private school
GB News
Hoon emphasised that while parents retain the choice to opt for private education, he believes they should not receive a tax break for doing so.
Addressing his personal experience, Hoon revealed he attended a private school on a full scholarship funded by the local education authority. He told GB News: “I went to a private school, yes. The reality was, I got a scholarship paid for by the local education authority.
“My scholarship was 100 per cent, so my parents didn’t pay anything, so they wouldn’t have paid anything extra anyway.”
However, Hoon expressed support for potential exemptions in the policy, particularly for children with educational difficulties.
He said: “I think the important exemption that the government have indicated in relation to children with educational difficulties, I think that’s quite right.
“I think there are more ways of looking at other assistance to those who are less well off, who are struggling to pay fees.”
Hoon also suggested exploring additional assistance for less affluent families struggling with fees. Despite his own private education.
He maintained that the principle of applying VAT to private school fees remains sound, arguing it aligns with broader VAT rules on services.
