Labour Party Internal Conflict Over Private School Tax: 3 Devastating Cracks Emerging

A Story by Aman Gandhi.

3 months ago

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Labour Party Internal Conflict Over Private School Tax: A Deepening Divide

Labour Party internal conflict over private school tax deepens as Keir Starmer’s policy faces legal challenges and criticism from within the party, sparking concerns over unity and fairness.

UK Prime Minister Keir Starmer Meets with EU Leaders In Brussels
© Getty

Labour’s Controversial Policy on Private School Tax

Labour Party internal conflict over private school tax has become a significant issue for Keir Starmer’s leadership. The policy, aimed at imposing a 20% VAT on private school fees, is designed to generate £1.5 billion annually, which would be invested in state schools. While this proposal was highlighted in the Labour manifesto as a way to address educational inequality, it has led to fierce opposition from various quarters. Critics within the party, legal experts, and independent school bodies are raising serious concerns, making the policy a point of contention both inside and outside Labour ranks.

Keir Starmer’s government remains steadfast in defending this policy, but as opposition mounts, it is becoming increasingly clear that the Labour Party internal conflict over private school tax could harm the unity of the party.

Legal Challenges on the Horizon

One of the main challenges facing the Labour Party internal conflict over private school tax comes from legal experts who warn that the policy is poorly defined. The concern is that the definition of what qualifies as a “private school” is too broad, potentially impacting institutions like universities. If this happens, universities could be forced to charge a 20% VAT on their tuition fees starting as soon as January.

The implications of this vague definition have sparked the possibility of two separate legal challenges. Both argue that the policy infringes upon students’ rights, specifically under the European Convention on Human Rights and the Human Rights Act 1998. Legal analysts have pointed out that any action infringing on a child’s access to education could be seen as a violation of their fundamental rights. These challenges may force Labour to rethink their stance or face prolonged legal battles.

The Independent Schools Council (ISC), which represents over 1,400 private schools across the UK, is already preparing for potential legal action. They are working closely with their member associations to decide whether to take the case to the High Court. If they move forward with this challenge, it could significantly derail Labour’s plans.

A final decision will be made after the release of the detailed legislation in the upcoming Budget, scheduled for October 30. This period leading up to the Budget is crucial, as both critics and Labour’s supporters await the final wording of the policy, which could make or break the government’s intentions.

Dissent Within the Labour Party

It’s not just external forces that are causing problems for Keir Starmer’s tax proposal; the Labour Party internal conflict over private school tax is intensifying, with dissent growing from within. Rachael Maskell, Labour MP for York Central, has emerged as one of the most vocal critics from within the party. She argues that the policy, as it stands, could worsen societal divides rather than bridge them, which goes against the party’s core mission of reducing inequality.

Maskell’s main concern is with smaller private schools that charge lower fees. She plans to publish an alternative report next week, advocating for an exemption for schools that charge less than £6,500 annually. According to her, these schools cater to families that are not necessarily wealthy, and taxing them would only put more pressure on middle-class families, without effectively addressing the wealth gap Labour is aiming to tackle.

Maskell’s position highlights the Labour Party internal conflict over private school tax, as her views reflect a broader divide within the party. While some members support the tax as a means of funding state education and levelling the playing field, others believe that it could unfairly target smaller institutions and families. This growing internal disagreement poses a challenge for Starmer’s leadership, as it undermines party unity on a major policy initiative.

Human Rights and Special Educational Needs: Another Legal Challenge

Another critical issue complicating the Labour Party internal conflict over private school tax is the impact it could have on children with special educational needs. Many parents who send their children to private schools do so because these institutions offer specialised support that the state system struggles to provide. Labour’s policy, however, could limit access to these schools by increasing fees, disproportionately affecting children who rely on this level of education.

In a separate legal challenge, a single parent and her daughter are preparing to take the government to court, arguing that the policy discriminates against children with special educational needs. The claim suggests that these children could lose access to the education they require if private school fees rise due to the VAT, and if state schools cannot meet their specific needs. This legal case is particularly significant because it could set a precedent. If the court sides with the parent, it may block Labour’s tax plan entirely, forcing the party to revisit and revise the policy.

The legal action, though brought by a single family, has the potential to create a ripple effect, as thousands of parents with similar concerns could follow suit. With this kind of backing, the legal challenge is likely to make headlines and put further pressure on Labour to reconsider its approach.

What’s Next for Labour?

With the Budget set for October 30, the Labour Party internal conflict over private school tax is reaching a critical juncture. Once the final legislation is published, the Labour government will face not only the internal dissent but also external legal battles that could delay or dismantle the policy altogether. If the tax on private schools is included in the Budget as expected, lawyers will push for an expedited hearing, with the High Court possibly considering the case as early as next month.

Keir Starmer’s leadership is at a crossroads. The Labour Party internal conflict over private school tax is testing his ability to navigate both internal criticism and external pressure. While Starmer has stood by the policy, arguing that it is necessary to fund much-needed reforms in the state school system, the opposition is growing louder. How he manages this internal rebellion and addresses the legal challenges will likely shape the future of his leadership and the success of this key policy.

Conclusion

The Labour Party internal conflict over private school tax is becoming a defining issue for Keir Starmer’s government. With legal challenges looming and growing dissent within his own party, Starmer faces an uphill battle to implement his flagship education policy. As the Budget approaches, all eyes are on the final details of the legislation and how the government will respond to mounting opposition. Whether Labour can find a way to balance these concerns while maintaining its commitment to reducing inequality remains to be seen, but one thing is clear: this issue is far from resolved, and the outcome will have far-reaching implications for both the party and the UK’s education system.