It comes as current Telegraph evaluation reveals that many middle-class households are already being priced out of Britain’s finest non-public faculties resulting from surging charges.
Luke Sibieta, a analysis fellow on the IFS, mentioned: “[Labour’s tax policy] will imply dad and mom simply cease putting their youngsters in non-public faculties [at an early age] as a result of it’s unaffordable and never price it in the long term.”
The IFS report, printed in the present day, mentioned: “Our view is that it could be affordable to imagine a spread of someplace between a 3pc and 7pc fall in non-public college attendance – or about 20,000-40,000 pupils – on account of a 15pc efficient VAT charge.”
It additionally mentioned: “With many different features of the VAT system, there’s potential for tax avoidance. One may envisage faculties searching for extra items or donations to scale back the impression of the tax adjustments or charging extra for different non-VATable items and providers [….] there are nearly definitely extra alternatives for avoidance [under Labour’s policy].”
Julie Robinson, chief government of the Impartial Faculties Council, mentioned the variety of pupils leaving non-public faculties will rise if Labour comes into energy.
She mentioned: “The IFS itself admits its calculations on pupil motion are unsure and based mostly on restricted proof – we consider the quantity shifting from unbiased faculties will likely be a lot greater in follow”