Private schools in York are "disappointed" with the introduction of VAT on top of fees - and fear it will place added pressure on the city's state schools.

Labour Chancellor Rachel Reeves confirmed the change in an address to Parliament on July 29. This means that a 20 per cent VAT charge will be introduced from January 1, 2025.

In response to the news, a spokesperson for York's oldest private school - St Peter's - said the VAT move could put added pressure on state schools in York, which could face an influx of pupils.

The spokesperson said: "We were very disappointed that it has been confirmed that VAT on school fees will be introduced from January 2025 as it will place such a burden on hardworking parents and has the potential to disrupt their children’s education.

"St Peter’s will be doing all it can to mitigate the impact of the tax which we will be legally obliged to add to fees from January and we will be bringing forward our plans to ease the burden on parents as much as we can.

Chancellor of the Exchequer Rachel Reeves (Image: Jordan Pettitt/PA Wire)

"We hope that this means our pupils can remain at the school and not put undue pressure on admissions to local state schools, many of which we are proud to work with in partnership."

Treasury minister James Murray said the Government is "committed to addressing unfairness in the tax system" and that it was intending to raise money for public services by "closing loopholes and tackling tax avoidance".

Mr Murray added: "The Government is setting out next steps on its priority tax commitments to allow for technical consultation and provide taxpayers with certainty ahead of their final confirmation at budget."

The Mount School, an all-girls private school in York, also responded to the VAT move.

The Mount School, York (Image: Newsquest)

The school's Governing Committee said: "We understand that the advanced VAT introduction, will impact many families and recognise the financial challenges this will present, and we are committed to mitigating the impact wherever possible. 

"We have been looking at this challenge for the last year and seeking ways in which we may be able to absorb some of the increase without compromising the viability of the school and our pupil’s education.

"Our commitment to supporting our families remains steadfast, and we continue to provide them with regular updates on our progress."

RECOMMENDED READING:

The Independent Schools Council (ISC), which "protects and promotes" the private school sector, said that pressure will be increased on the entire education sector. 

Deputy CEO and head of policy, Simon Nathan said: "All schools will be looking at how they can mitigate the effects of this tax on education for parents.

"However, there is only so much they can do and many will have no choice but to pass on at least some of the cost: thousands of children across the country face having their education disrupted as a result.

"This policy will increase pressure on state schools and on an already-stretched SEND system, as well as on faith provision and on military families."