Philip Hammond ‘forced to abandon’ private school VAT plans
Reports suggest that opposition from Tory backbenchers has forced Chancellor Philip Hammond to scrap plans to charge VAT on private school fees.
Conservative MPs are said to have reacted with “outrage” to the Chancellor’s plans, which were due to be announced in the Autumn Budget on 29th October, according to reports in the Sun.
The plans, first proposed by Labour ahead of the 2017 general election, would have seen private schools lose the VAT exemption they have under charitable status.
It was claimed that removing tax breaks for private schools could have raised around £1.5 billion for the Treasury.
The plans were reportedly ditched amid fears that the Budget may struggle to win the full support of the Prime Minister’s working majority.
You can read more on this story on Politics Home and on The Sun.