"It's time things are done differently": Chancellor makes major private schools announcement

Tax breaks for private schools will end in 2025 to enable better investment in state education, the Chancellor Rachel Reeves confirmed today (Sunday).

An exemption will end on New Year's Day meaning 20 per cent VAT will be added to education and boarding fees charged by private schools. The Government said it would mean thousands of state schools, where the vast majority of children are taught, receiving a funding boost next year.

The Chancellor said the core schools budget would increase by £2.3 billion next year as a result, with the VAT change raising £1.5, rising to £1.7 billion a year by 2029/30.

Ms Reeves said: "It's time things are done differently. Ending the VAT break for private schools means an additional £1.7 billion a year that can go towards our state schools, where 94 per cent of this country's children are educated.

"That means more teachers. Higher standards. And the best chance in life for all our children as we deliver on our Plan for Change."

The Prime Minister's Plan for Change has set out priorities for government school funding.

The Government said that as part of the plan, it was committed to hiring 6,500 new teachers, driving up standards and improving the Special Educational Needs and Disabilities system (SEND).

Education Secretary Bridget Phillipson said: “High and rising standards cannot just be for families who can afford them, and we must build an education system where every child can achieve and thrive.

"Our ambitious Plan for Change sets out our clear mission to break the link between background and success and ending the VAT break enjoyed by private schools will provide much needed investment in our state schools, to help recruit and retain expert teachers."

The policy sets out that any