UK's Planned VAT on International Schools Sparks Diplomatic Tensions
German and French ambassadors urge the UK to exempt international schools from new tax measures, citing potential cultural and economic impacts.
- The UK government plans to remove VAT exemptions on private school fees starting January, imposing a 20% tax.
- German and French ambassadors argue that international schools should be excluded from this tax due to their unique role in serving expatriate communities.
- The proposed VAT changes could lead to a significant number of students leaving international schools, with estimates suggesting 20-25% of students may be affected.
- Ambassadors warn that the tax could strain UK relations with Germany and France and impact businesses relying on these schools for employees' children.
- The Labour Party's VAT policy aims to fund additional teachers for state schools but faces criticism for its potential unintended consequences.