Charity cases: an assembly at Eton College. Photo: Getty
Show Hide image

Forget Tristram Hunt’s tinkering: private schools should have their tax breaks scrapped altogether

Private schools allow the privileged to buy their way into every structure of power in this country with barely a whisper from the rest of us. Why give them tax relief as charities when so many do next to nothing to earn it?   

Last night, it emerged that Labour plans to tell private schools to do more to help state schools - or lose the £700m tax relief they get for supposedly doing that already. This morning, the Telegraph opted for a front-page splash declaring “class war”. Hmm, I wonder why politicians don’t address the issue of private schools more often.

Last year I called private-school tax relief – and their wider charity status – characteristic of the “collective amnesia”  this country has around the private-school system: we are fully aware of the unfairness but few of us are willing to do anything about it. If there was any doubt, have a glance at the coverage of Labour education spokesman Tristram Hunt’s proposals this morning. Forget the existence of private schools generally, even discussing the tax relief given to them gets the right-wing media into the sort of frenzy that should be saved for full-scale communism with a black lesbian president. 

But then, why wouldn’t they? When the status quo is working out well for you, the thought of losing even the smallest crumbs of your cake is going to be terrifying. And let’s not underestimate this: the status quo is working out really well for some. Just 7 per cent of the British public attended private school. But they make up 71 per cent of senior judges, 62 per cent of senior armed forces officers, 55 per cent of Whitehall permanent secretaries and 50 per cent of members of the House of Lords – and 43 per cent of newspaper columnists. Private school pupils are 55 times more likely to be offered a place at Oxbridge. Those who went to a fee-paying school are currently earning almost a fifth more than those whose parents did not pay for their schooling, according to a recent study by the Sutton Trust. In essence, already disadvantaged children are being priced out of university places, influential jobs and high incomes. But clearly, removing a tax exemption and thereby adding a couple of hundred pounds a year to private school fees is the real injustice

Tristram Hunt’s proposals do not even threaten a complete removal of tax exemption from private schools. He is simply saying they have to start doing more for the privilege. As it stands, a private school can claim up to an 80 per cent cut in its business rates (conditional on meeting minimum standards of partnership with the state sector). Yet just 3 per cent of private schools sponsor an academy and only a further 5 per cent loan teaching staff to state schools. Two-thirds don’t even share facilities. We are, I assume, simply not supposed to mention this. To throw them their tax breaks with a respectful and chipper tip of the hat. Private schools buy their way into every structure of power in this country with barely a whisper from the rest of us. It seems entirely consistent to give them tax relief status while letting them do next to nothing to earn it.     

As the BBC points out, Hunt’s proposals are one thing but the bigger challenge is removing private school’s charitable status altogether. I am not sure how schools that actively harm less advantaged children have convinced the rest of us they are charitable. Perhaps my definition of charity is different – although there is something suitably patronising about the old network bestowing treats for the deserving comprehensive poor (a sponsorship there, a loaned science lab here). Forget politely asking them to help out the working class when they get a minute, any government that has the slightest concern for inequality should remove the private school system’s tax breaks altogether.

After all, tax relief for private schools is essentially like watching a thief take your TV and asking him if he’d like your iPad. “You’ve only prevented my chance to watch television. Are you sure you wouldn’t like to have a go at my internet, too?” 

Private schools are mechanisms of vast inequality that actively worsen the life chances of already disadvantaged children and they want us to thank them for it. This might be a sign of their view of state education but – exactly how stupid do they think we are?

Frances Ryan is a journalist and political researcher. She writes regularly for the Guardian, New Statesman, and others on disability, feminism, and most areas of equality you throw at her. She has a doctorate in inequality in education. Her website is here.

Photo: Getty
Show Hide image

The big problem for the NHS? Local government cuts

Even a U-Turn on planned cuts to the service itself will still leave the NHS under heavy pressure. 

38Degrees has uncovered a series of grisly plans for the NHS over the coming years. Among the highlights: severe cuts to frontline services at the Midland Metropolitan Hospital, including but limited to the closure of its Accident and Emergency department. Elsewhere, one of three hospitals in Leicester, Leicestershire and Rutland are to be shuttered, while there will be cuts to acute services in Suffolk and North East Essex.

These cuts come despite an additional £8bn annual cash injection into the NHS, characterised as the bare minimum needed by Simon Stevens, the head of NHS England.

The cuts are outlined in draft sustainability and transformation plans (STP) that will be approved in October before kicking off a period of wider consultation.

The problem for the NHS is twofold: although its funding remains ringfenced, healthcare inflation means that in reality, the health service requires above-inflation increases to stand still. But the second, bigger problem aren’t cuts to the NHS but to the rest of government spending, particularly local government cuts.

That has seen more pressure on hospital beds as outpatients who require further non-emergency care have nowhere to go, increasing lifestyle problems as cash-strapped councils either close or increase prices at subsidised local authority gyms, build on green space to make the best out of Britain’s booming property market, and cut other corners to manage the growing backlog of devolved cuts.

All of which means even a bigger supply of cash for the NHS than the £8bn promised at the last election – even the bonanza pledged by Vote Leave in the referendum, in fact – will still find itself disappearing down the cracks left by cuts elsewhere. 

Stephen Bush is special correspondent at the New Statesman. He usually writes about politics.