Labour drops plan to strip public schools of charitable status

Labour’s plans to end the charitable status for private schools has been dropped by the party, but they say they will still remove other tax breaks if they were to win the next general election. 

The charitable status exempts some private schools in England and Wales from taxes. 

Labour leader Sir Keir Starmer had previously said that charitable status for private schools could not be justified. 

The party now says it can remove “unfair tax breaks” without changing the rules on charitable status. 

There are about 2,500 private schools in England and Wales and the government says half are registered as charities. 

Having charitable status for schools means they can not operate for a profit and are eligible for tax exemptions such as donations and business rates. 

Labour says it would charge private schools 20% VAT as well as ending business rates relief, to raise an estimated £1.7bn. 

A spokesperson said the party would use the money raised from the changes “to fund desperately needed teachers and mental health counselling in every secondary school”.

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