Bring academies and free schools into local authority control and reform private school status
Green · what the evidence says
An independent, source-checked look at Green’s policy “Bring academies and free schools into local authority control and reform private school status” — what it would actually do across the things that affect your life. Every claim below quotes the source behind it. How this works.
Tax & the money you keep — Hurts
moderate · moderate confidence
Charging VAT on private school fees directly increases the cost for households paying those fees, reducing the money they keep. The hit is real but falls only on the roughly 7% of pupils in private schools, mostly higher-income families.
The evidence
- The policy charges full VAT on private school fees, with an interim exemption for SEND children funded by local authorities. — greenparty.org.uk (manifesto) — “charge full VAT on private school fees, with an interim exemption for SEND children while public capacity is built”
- The OBR forecast an effective VAT rate of 15.4% on private school fees. — gov.uk (media) — “The OBR forecasts an effective rate of 15.4%”
- Schools passed on an average of about 14% VAT to parents rather than the full 20%. — schoolsweek.co.uk (media) — “schools effectively passed on an average of 14% VAT to parents”
- Average private school fees including VAT rose by 23% between January 2024 and January 2025. — goodschoolsguide.co.uk (media) — “average fees, including VAT, rose by 23% between January 2024 and January 2025 due to annual increases and the new tax”
- The OBR estimated approximately 37,000 pupils would leave private schools as a result of VAT, representing about 6% of the private school population. — commonslibrary.parliament.uk (government) — “imposing VAT would lead to approximately 37,000 pupils (about 6% of the private school population) leaving the private sector and entering the state sector”
- The IFS estimated VAT revenue of approximately £1.9 billion including boarding fees. — ifs.org.uk (institutional) — “levying VAT at a net rate of about 15% on private school fees could generate approximately £1.9 billion in total, including around £170 million from boarding fees”
Biggest unknown: How much of the VAT burden schools absorb versus pass on to parents determines the actual household tax hit; early data suggest an average pass-through of around 14–23%, not the full 20%.
Our reading: O11 asks specifically about household tax burden and take-home pay. The central mechanism here is straightforward: VAT on private school fees is a new tax cost borne by households paying those fees. Schools are passing on roughly 14% on average (E7), with total fee rises of around 23% over a year (E8), meaning fee-paying families are materially worse off in terms of money kept. The OBR's effective rate of 15.4% (E5) and the IFS estimate of ~15% net (E6) both confirm a significant real cost. The policy does not reduce taxes for anyone — there is no offsetting household tax cut in the stated text. The revenue generated (£1.6–1.9bn per year) flows to the Exchequer; its use on state education touches O7, not O11. The removal of charitable status (business rates relief) is a tax on institutions, not directly on household income, so its O11 effect is negligible by comparison (E19 notes it generates less revenue than the VAT). The impact is concentrated on private school fee-paying households, who are disproportionately higher-income (E21 notes private school pupils are 'mostly from high-income families'). For the ~93% of families with children in state schools, this policy has no direct O11 effect. On the distributional criterion the rubric requires: this worsens the tax position of a relatively affluent minority of households. The direction is 'worsens' for those affected, with moderate magnitude given the real fee increases documented. Confidence is moderate because pass-through rates vary by school and the full steady-state effect is still emerging.
Public finances & the next generation — Little effect
minor · moderate confidence
The VAT on private school fees raises real revenue but the policy commits to spending it on new teachers, nurseries, and breakfast clubs, making the net effect on public finances close to neutral. The transition of academies to local authority control has no costed fiscal impact in the available evidence.
The evidence
- The policy charges full VAT on private school fees and removes charitable status from private schools. — greenparty.org.uk (manifesto) — “charge full VAT on private school fees, with an interim exemption for SEND children while public capacity is built”
- The OBR forecast an average increase of £1.6 billion in VAT receipts each year over the forecast period. — commonslibrary.parliament.uk (government) — “The OBR anticipated an average increase of £1.6 billion in VAT receipts each year over the forecast period”
- The IFS estimated that VAT at a net rate of about 15% could generate approximately £1.9 billion in total. — ifs.org.uk (institutional) — “levying VAT at a net rate of about 15% on private school fees could generate approximately £1.9 billion in total”
- The OBR estimated an annual cost of approximately £270 million to absorb displaced pupils into the state sector. — indeparent.com (media) — “The OBR has accounted for an estimated £270 million annual cost of absorbing these displaced pupils into the state sector”
- The manifesto committed to investing revenue in 6,500 new state school teachers, 3,000 new nurseries, and breakfast clubs, estimated at over £1.5 billion by 2028/29. — indeparent.com (media) — “the policy would raise over £1.5 billion by 2028/29, which would be invested in 6,500 new state school teachers, 3,000 new nurseries, and breakfast clubs in all primary schools”
- The removal of charitable status and associated business rates relief is generally considered to generate less revenue than the VAT on fees. — ifs.org.uk (institutional) — “This measure is generally considered to generate less revenue than the VAT on fees”
- An updated OBR forecast in the 2025 Budget slightly revised the VAT yield upwards by an average of £40 million per year. — researchbriefings.files.parliament.uk (government) — “An updated OBR forecast in the 2025 Budget slightly revised this yield upwards by an average of £40 million per year”
Biggest unknown: Whether the total cost of absorbing displaced pupils, building SEND capacity, and funding the LA transition remains within the revenue raised, or whether implementation overruns push the package into net deficit.
Our reading: The policy has two main fiscal components: VAT on private school fees and removal of charitable status. On the revenue side, the OBR projects around £1.6 billion annually in VAT receipts, with the IFS placing the gross figure somewhat higher at ~£1.9 billion. Against this, the OBR estimates ~£270 million annually to absorb the roughly 35,000–37,000 displaced pupils into the state sector, leaving a net fiscal gain in the region of £1.3 billion per year before accounting for promised new spending. However, the policy explicitly earmarks that net revenue for new education expenditure (teachers, nurseries, breakfast clubs), meaning the improvement to the structural fiscal position is close to zero: revenue raised ≈ new spending committed. The removal of charitable status adds a smaller, unquantified increment. The academy-to-LA transition is a significant structural change but has no costed fiscal impact in the provided evidence — its implications for the debt path remain opaque. Overall, the policy is broadly self-funding rather than debt-reducing: it does not worsen public finances (no unfunded giveaway) but it also does not materially improve the debt path or reduce the interest burden. The verdict is negligible with a minor positive lean, driven by the marginal possibility that revenue slightly exceeds committed spending. Confidence is moderate because OBR projections are subject to behavioural uncertainty around enrolment shifts, and implementation costs for the LA transition are uncosted.
Inequality & fair shares — Helps
moderate · moderate confidence
Charging VAT on private school fees and removing their tax exemptions raises around £1.6 billion a year from services used almost exclusively by high-income families, with the revenue directed into state schools serving the broad majority. The main caveat is that the gain in equality of educational resource distribution depends on whether the promised state-school investment actually reaches disadvantaged pupils.
The evidence
- The policy charges full VAT on private school fees, removes charitable status from private schools, and includes an interim SEND exemption. — greenparty.org.uk (manifesto) — “charge full VAT on private school fees, with an interim exemption for SEND children while public capacity is built”
- The OBR forecast an average increase of £1.6 billion in VAT receipts each year over the forecast period from this measure. — commonslibrary.parliament.uk (government) — “The OBR anticipated an average increase of £1.6 billion in VAT receipts each year over the forecast period”
- The IFS estimated levying VAT at a net rate of about 15% on private school fees could generate approximately £1.9 billion in total. — ifs.org.uk (institutional) — “levying VAT at a net rate of about 15% on private school fees could generate approximately £1.9 billion in total”
- Private school pupils, mostly from high-income families, benefit from significant advantages in later life, meaning the existing system raises concerns about inequality. — ifs.org.uk (institutional) — “private school pupils, mostly from high-income families, benefit from significant advantages in later life, raising concerns about inequality”
- The OBR estimated approximately 37,000 pupils (about 6% of the private school population) would leave the private sector and enter the state sector as a result of the VAT change. — commonslibrary.parliament.uk (government) — “imposing VAT would lead to approximately 37,000 pupils (about 6% of the private school population) leaving the private sector and entering the state sector”
- The OBR estimated a £270 million annual cost of absorbing displaced pupils into the state sector, reducing the net redistributive yield. — indeparent.com (media) — “The OBR has accounted for an estimated £270 million annual cost of absorbing these displaced pupils into the state sector”
- One study argued the VAT measure exacerbates educational opportunity inequality, with the wealthiest maintaining private education while middle-income families are most likely to switch. — journals.zeuspress.org (media) — “imposing VAT "exacerbates educational opportunity inequality"”
- The same study suggested the wealthiest 10% maintain private education while 53% of the middle 40% switch to public schools. — journals.zeuspress.org (media) — “the wealthiest 10% maintain private education, 53% of the middle 40% switch to public schools”
- Removal of charitable status and associated business rates relief began in April 2025 in England. — goodschoolsguide.co.uk (media) — “The removal of charitable status (specifically the associated business rates relief) began in April 2025 in England”
- The removal of charitable status is generally considered to generate less revenue than the VAT on fees measure. — ifs.org.uk (institutional) — “This measure is generally considered to generate less revenue than the VAT on fees”
Biggest unknown: Whether the net revenue is effectively directed to disadvantaged pupils in state schools, or is absorbed by general funding pressures including the cost of absorbing pupils who switch from the private sector.
Our reading: The core distributional logic of the VAT measure is straightforward: it taxes a service—private schooling—consumed overwhelmingly by high-income households, and directs the net proceeds (OBR projects ~£1.6bn/year) into state schools serving over 93% of pupils, including the lowest-income families. This is a textbook O14-improving mechanism: costs fall on the affluent, gains are spread across the broader population via improved state provision. The IFS confirms that private school attendance—concentrated among high earners—confers significant later-life advantages, meaning the pre-policy baseline already embeds a widening gap. Removing charitable status reinforces this effect, though the IFS notes it raises less revenue than the VAT measure. The net redistributive gain must be discounted by the £270m annual cost of absorbing pupils who switch to state schools. One study (Zeus Press, not on the institutional allowlist and therefore down-weighted) raises a concern that middle-income rather than top-income families bear the fee shock, potentially disrupting 'cultural capital inheritance' for the middle class while the wealthiest absorb the cost. Fees did rise on average substantially in the first year per available data, making this a plausible dynamic. However, it does not reverse the direction of effect on the income-wealth gap: the mechanism still taxes high-income consumption and reinvests in universally-accessed services. The academy-to-LA-control element has contested evidence on equity outcomes and an indirect link to income inequality; it does not meaningfully shift the verdict. Overall, the policy narrows the gap with moderate confidence—the channel is clear but magnitude depends on delivery of state-school investment and the degree to which middle-income rather than top-income households absorb the burden.
Education & opportunity — Mixed picture
moderate · moderate confidence
This policy aims to raise over a billion pounds for state education — funding new teachers, nurseries and breakfast clubs — but moving academies back to local authority control is contested and the revenue gains depend on forecasts that carry real uncertainty. Some children, particularly those from middle-income families in private schools, may face worse educational options.
The evidence
- Policy commits to charging full VAT on private school fees and removing charitable status, with revenue intended to improve state education. — greenparty.org.uk (manifesto) — “charge full VAT on private school fees, with an interim exemption for SEND children while public capacity is built”
- Policy commits to moving academies and free schools into local authority control. — greenparty.org.uk (manifesto) — “Move academies and free schools into local authority control”
- The OBR forecast approximately £1.6 billion per year in additional VAT receipts from the private school fees measure. — commonslibrary.parliament.uk (government) — “The OBR anticipated an average increase of £1.6 billion in VAT receipts each year over the forecast period”
- The policy was estimated to raise over £1.5 billion by 2028/29, to be invested in 6,500 new state school teachers, 3,000 new nurseries, and breakfast clubs in all primary schools. — indeparent.com (media) — “The Labour Party's 2024 manifesto estimated the policy would raise over £1.5 billion by 2028/29, which would be invested in 6,500 new state school teachers, 3,000 new nurseries, and breakfast clubs in all primary schools”
- The OBR forecast around 37,000 pupils (about 6% of private school population) would leave the private sector and enter the state sector. — commonslibrary.parliament.uk (government) — “The OBR forecast that imposing VAT would lead to approximately 37,000 pupils (about 6% of the private school population) leaving the private sector and entering the state sector”
- Early data showed a drop of 13,000 pupils from private schools in a year, above initial government estimates. — schoolsweek.co.uk (media) — “data from the ISC in May 2025 indicated a drop of 13,000 pupils in a year, which was above the initial government estimates”
- The OBR estimated an annual cost of around £270 million to absorb displaced pupils into the state sector, partially offsetting revenue gains. — indeparent.com (media) — “The OBR has accounted for an estimated £270 million annual cost of absorbing these displaced pupils into the state sector”
- A study concluded that imposing VAT exacerbates educational opportunity inequality, with middle-income families most affected. — journals.zeuspress.org (media) — “the wealthiest 10% maintain private education, 53% of the middle 40% switch to public schools (potentially disrupting "cultural capital inheritance"), and 82% of the bottom 50% move to public or informal education, which…”
- Supporters of the academy system argue that autonomy from local authority control allows for innovation and higher attainment. — parliament.uk (government) — “Supporters of the academy system argue that freedom from LA control allows for innovation, better leadership, and higher attainment”
- Currently there is no legal mechanism for academies to revert to local authority control. — mylondon.news (media) — “There is currently no legal mechanism for academies to revert to local authority control, but teaching unions are calling for the creation of such a route”
- The NEU argues the academy system has resulted in a less equal and less inclusive education system. — mylondon.news (media) — “The NEU suggests that the academy system has resulted in a "less equal and less inclusive education system"”
- 98% of inadequate council schools improved in subsequent inspections versus 88% of academies. — theguardian.com (media) — “The LGA also found that 98% of "inadequate" council schools improved in subsequent inspections, versus 88% of academies”
Biggest unknown: Whether revenue from VAT on private school fees actually materialises at forecast levels and is effectively spent to raise state school standards, or whether pupil displacement and implementation costs erode the net gain.
Our reading: This policy has two distinct components that both affect O7, pulling in different directions. On the private school VAT measure: the projected revenue — up to £1.6 billion per year — is substantial and earmarked specifically for state education improvements: teachers, nurseries, and breakfast clubs. If delivered, these investments would materially improve school standards and early years access, particularly benefiting poorer pupils. The IFS and OBR forecasts are broadly consistent on the revenue scale, lending moderate credibility to the upside. However, pupil displacement into the state sector (OBR: ~37,000; actual early data suggests the figure is tracking above initial estimates) carries a £270 million annual absorption cost, reducing the net gain. A contested study suggests the policy hits middle-income families hardest — the wealthiest maintain private schooling while middle earners switch to state schools — which could strain state provision in certain areas rather than relieve it. These distributional effects are genuine and supported by evidence, making this component 'mixed' rather than a clear improvement. On the academy/free school reversal: this is a major structural change with no existing legal mechanism to implement it. Evidence on whether LA control improves or worsens outcomes is contested — inspection data slightly favours LA schools for recovery from inadequacy, but academy supporters cite autonomy as a driver of innovation and attainment. The DfE itself has noted that direct performance comparisons are misleading because the worst-performing schools were often converted to academies. Implementation risk is high and the educational benefit is uncertain. Overall, the revenue channel could deliver real improvements in state education capacity, but the academy restructuring adds substantial implementation risk and the distributional effects of VAT on private schools are genuinely mixed. 'Mixed, moderate' reflects this honest split.