Private school head accuses Reeves of ‘politically motivated tax on education'
Andrew McGarva, principal at Morrison's Academy in Perthshire, Scotland, said he was 'dismayed' to learn the children of American soldiers would be spared the tax after Labour's 'steadfast refusal to consider any form of exemption or delay for vulnerable groups'.
It comes after The Telegraph revealed last week that the 20pc VAT levy on school fees would not apply to children of US soldiers because of a tax rule that has exempted American military from paying tax on services since 1951.
In a briefing note, HM Revenue and Customs said American military families would be exempt under the 'VAT-free purchase scheme'. The tax relief dates back to the NATO Status of Forces Agreement signed 74 years ago.
Mr McGarva, who has led the £20,880-a-year Scottish school for the past three years, said: 'This decision highlights inconsistencies in the imposition of VAT on school fees and raises troubling questions about our Government's priorities.
'It feels as though this decision has more to do with keeping in step with the US than protecting children's education.
'The introduction of this 'education tax' is not about improving the state sector or addressing inequalities – it is a politically motivated move that risks harming children, families and communities across the UK.'
It comes after Labour stopped short of granting an exemption for British service families at the Budget in October. This was despite warnings it could spark an exodus of military families at a time when the Army is at its smallest size in 200 years.
In an interview with The Scotsman, Mr McGarva added: 'What makes this policy particularly frustrating is the Government's steadfast refusal to consider any form of exemption or delay for vulnerable groups.
'Families of children with additional needs, schools serving niche communities, and those supporting the armed forces have all been dismissed.
'However an exemption has now been made for US personnel, supposedly in adherence to an agreement signed over 70 years ago.'
James Cartlidge, the shadow defence secretary, accused Labour of 'treating British forces as second-class citizens'.
He said: 'We consistently argued for an exemption to be applied. Labour must now urgently adopt that policy or accept they are delivering a deep unfairness to those who serve our country.'
His concerns were echoed by Dr Neil Shastri-Hurst, a former British army veteran and fellow Conservative MP, who called the decision 'outrageous'.
The MP for Solihull West and Shirley said: 'The Chancellor has reneged on her commitment to British serving personnel while standing by her commitment to the US military. It should be one rule for all.'
Parents of children with special needs who are unable to get an education, health and care plan, faith groups and small independent schools have repeatedly lobbied Labour to consider an exemption, but their concerns have not been addressed.
Their hopes now lie in the High Court where a legal challenge on behalf of more than 1,000 private schools is set to be heard before Easter which aims to show the controversial policy breaches the human rights of children.
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