French and German ambassadors to the UK have criticized Sir Keir Starmer’s proposal to impose VAT on private school fees, arguing that it could lead to the expulsion of many children from international schools and harm diplomatic relations with the UK. The ambassadors emphasized that fee-paying international schools, which receive funding from overseas governments, are not traditional independent schools and should not be subject to the VAT levy.
The UK government plans to remove the VAT exemption on private school fees starting in January, resulting in an additional 20% charge. This policy is expected to generate £1.5 billion for investment in state schools and the recruitment of 6,500 teachers. However, French and German diplomats expressed concerns that this move could have negative implications for their nationals studying in international schools in the UK.
The French ambassador mentioned that around 25-30% of French students enrolled in schools in the UK may have to leave due to the additional charges, while a similar percentage of students at The German School in London might also struggle to afford the fees. The diplomats also warned that the imposition of VAT on international schools could deter employees of European businesses from accepting assignments in the UK, as they prefer their children to follow their home country’s curriculum while abroad.
There are 11 French schools in the UK overseen by the French government, which follow the French national curriculum and receive public funding from Paris. The German School in Richmond, south-west London, is also partially funded by Berlin and serves as a cultural link between Germany and the UK. Both ambassadors stressed the importance of these schools for cultural and diplomatic relations between the countries.
The diplomats urged the British government to reconsider the VAT levy on international schools, highlighting the impact it could have on families and businesses. They emphasized the need for recognition of the unique nature of these schools and the role they play in facilitating international cooperation and exchange. Despite the challenges posed by Brexit and the financial strain on European schools in the UK, the diplomats underscored the significance of preserving these educational institutions for the benefit of all parties involved.
In response, the Treasury defended the policy change, stating that it aims to ensure equal opportunities for all children and to prioritize education funding for the upcoming year. The government’s decision to end tax breaks on private schools is part of its strategy to support education priorities and provide a level playing field for all students.
Overall, the debate surrounding the imposition of VAT on international schools in the UK reflects the complex dynamics of education policy, diplomatic relations, and economic considerations. As stakeholders continue to navigate these challenges, finding a balanced solution that addresses the concerns of all parties involved will be crucial for maintaining harmonious international cooperation and supporting the educational needs of diverse communities.