France and Germany criticize UK plan to charge VAT on international school fees

France and Germany criticised Sir Keir’s Starmer plan to tax private school fees. They said the policy could force hundreds of children from international schools, and damage diplomatic relations with UK.

Helene Duchene, the French ambassador to London, and Miguel Berger the German ambassador to London told the British government that international schools which pay fees and are partly funded by foreign governments were not “conventional independent schools” and therefore should not be subjected to the tax.

Prime Minister plans to remove VAT exemptions on private school fees in January, resulting in an additional 20% charge. The government claims that the policy will raise £1.5bn to invest in state schools including hiring 6,500 teachers.

Duchene stated that it is up to the UK to decide its own policies, but warned against applying VAT to international schooling as “not in accordance with the reset of our relationship” which the British Government has initiated. He was referring to Starmer’s push to improve post Brexit relations with European countries.

The London Diplomats said that 25-30% of the 6,300 students enrolled in French Schools in the UK may be forced to leave because of the new charge. Other schools are transferring the full to the parents.

They said that parents of 20-25 percent of the 900 students at The German School of London may not be able pay their fees.

Duchene and Berger both said that the move could deter employees of European companies from taking up postings in the UK because many want their children to continue their state curriculum when they are overseas.

The French government oversees 11 French schools across the UK, including the Lycee Francais Charles de Gaulle in West London, where annual fees can reach up to £16.923.

The schools follow the French curriculum and prepare students for French national exams.

Duchene stated: “We do not ask for an exception to the rule, as we are not the targets of this VAT measure.” We are not the same as those targeted, because we take special courses to prepare for French exams.

She said that VAT could also be a problem for our companies as they require these schools to train employees who will work in France for a period of time. These parents have no alternative plan because other schools do not follow the French curriculum.

Duchene stated that the 25-30% of parents who are struggling to pay the new fees for January is a true figure.

Berlin partially funds the German school in Richmond (south-west London), where annual fees are £10400. Berger stated that such schools are “totally different from British private school.” These schools serve as a bridge of culture between the two countries, and also as an option for those in business and other sectors who wish to have their children continue with our national curriculum.

He added, “We’d like to see that the British government recognizes the importance of these school — not just for our cultural and political relations but also the people who will be affected by this.”

“If we wish to attract companies here to invest and send their executives, then they need to know that they can send their kids to a German School. “I think that it’s a key element in the relationship.”

The new tax will be levied on just 20 European schools located in the UK. Most of these schools are unable to pay it due to their already weakened financial situation.

Treasury stated: “We are committed to ensuring that all children succeed in life.” The Treasury said: “Ending tax breaks for private schools will raise revenue to fund the education priorities we have set for next year.”