Labour leader calls for charitable status to end for private schools

Sir Keir StarmerImage source, Jeff Overs / BBC
Image caption,

Sir Keir Starmer is leader of the opposition Labour Party

The Labour leader Sir Keir Starmer says if his party wins the next General Election, he would stop private schools from having the benefit of charitable status.

This status allows private schools - also known as independent schools - to have certain advantages, including paying less money on certain taxes.

Private schools have more say over how they run themselves, as unlike state schools, they are not paid for by the government - but by charging school fees instead.

But some see this as controversial, as the money private schools receive from school fees isn't charged a tax called VAT, which raises extra money for the government.

However, private schools have said Sir Keir's plans would negatively affect pupils from poorer families the most.

We want to know what you think. Should private schools be allowed to have charitable status? Let us know in the comments below.

What is charitable status?

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When we think of charities we might think of organisations which help people or animals such as the British Red Cross or the RSPCA.

But many other organisations can also be registered as charities - including universities and religious places of worship - as long as their purposes are defined in law as being charitable.

What is a private school?

Private schools, also called independent schools, have more say over how they run themselves, as they are not paid for by the government.

To go to one of these schools, your parents would have to pay school fees, which is money used to run the school.

If you go to an independent school, you may not study the same things as children at state schools, because the teachers can make more decisions about what they would like to teach.

Most private schools are registered charities which means that they can't operate for profit, and must be able to show that they are creating a public benefit.

One of the ways many private schools do this, is by providing scholarships or bursaries - by using the money raised from school fees to help pay for children from poorer backgrounds, who might not otherwise be able to afford the fees, to go to the school.

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What did Sir Keir say?

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Sir Keir announced that he wants private schools to start paying VAT.

"When I say we are going to pay for kids to catch up at school, I also say it'll be funded by removing private schools' charitable status," the Labour leader said.

What is VAT?

VAT, or value added tax, is an extra charge added to many of the goods we buy as well as for certain services.

In the UK, VAT mainly adds an extra 20 percent charge on to the cost of things, and this extra money goes straight to the government.

The Labour leader has previously said that he wants the money raised from charging private schools VAT, to help provide additional money to help state schools.

Sir Keir said: "Labour wants every parent to be able to send their child to a great state school. But improving them to benefit everyone costs money.

"That's why we can't justify continued charitable status for private schools."

What have others said?

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Julie Robinson, Chief Executive of the Independent Schools Council, an organisation which represents thousands of private schools in the UK, said the proposals would have "the greatest impact on the families who work the hardest to pay the fees".

She added; "Ultimately, the policy would threaten the survival of the smallest independent schools."

Mrs Robinson also said that the best way for private schools to help state schools is by working together.

"Thousands of these projects are underway, improving education for all, and strengthening bonds between schools."

She added: "Partnership - not punitive taxes - is the best way for independent schools to contribute to catch-up efforts and create more learning opportunities for all pupils."