Military families set to be exempt from Labour’s controversial VAT on private school fees

Extra support to protect them from the hike expected to be announced in chancellor Rachel Reeves’ Budget

Military families are set to be protected from Labour’s decision to impose VAT on private school fees.

Critics of the plan have warned it is unfair to those in the Armed Forces who have to move countries and homes frequently and put their children in boarding schools.

There have even been warnings some could leave the services altogether as a result of fee increases which could come as a result of the changes due to come in in January.

Military families already receive support through an existing scheme, and now they are set to get extra help to ensure they are not affected by VAT under a package in the Budget, to be revealed on Wednesday.

But the move risks fuelling the outcry from other parents.

Military families are to be protected VAT on private schools (Ben Birchall/PA) (PA Wire)

Last month, The Independent reported parents are already deciding against sending their children to private schools as a result of the controversial policy.

The chancellor is imposing a 20 per cent tax hike on the schools for the first time.

Labour says the money will be used to pay for more than 6,000 teachers in state schools.

In a letter to the Treasury in September, the Army Families Federation warned that many families would consider leaving if there were no exemptions.

The charity cited a poll showing that 70 per cent of those with privately educated children would quit if further support was not provided.

“Any failure to mitigate the effect of this policy will lead to disincentivising service personnel to remain in the army, at a time when retention is already a critical concern for the MoD [Ministry of Defence]”, it warned in its formal response to the Treasury’s consultation on the plans.