Thousands of state schools across the UK are set to receive a vital funding boost, as Labour delivers on its pledge to end long-standing tax breaks for private schools starting this New Year’s Day. This bold move, spearheaded by Chancellor Rachel Reeves, is expected to raise £1.5 billion next year, increasing to £1.7 billion annually by the end of the decade.
Writing exclusively for the Mirror, Reeves declared her commitment to improving education for the 94% of British children educated in state-funded schools. “Children across the country are being held back—not by a lack of talent, but by a lack of opportunity. Our schools need more teachers, safer facilities, and greater standards,” she stated, highlighting decades of challenges faced by state schools.
The additional revenue will allow for an unprecedented uplift to the core schools budget, increasing it by £2.3 billion from next year. Among the government’s key goals are hiring 6,500 new teachers, enhancing facilities, and reforming the Special Educational Needs and Disabilities (SEND) system to provide equal opportunities to every child.
Education Secretary Bridget Phillipson reinforced the government’s mission to eliminate inequality in education. “High and rising standards should not be reserved for families who can afford hefty tuition fees. Ending tax breaks for private schools is a necessary step to fund the changes our state schools desperately need,” she said.
The tax reform is part of Labour’s broader “Plan for Change,” an ambitious strategy aimed at addressing inequality while investing in public services and rebuilding the economy. Reeves stressed the importance of stability, stating, “We choose better schools, better hospitals, and better living standards. This is reform—not chaos, austerity, or decline.”
The Chancellor also pointed to recent budget measures aimed at improving pay and reducing costs for ordinary citizens. She noted the government’s decisions to increase the National Living Wage, freeze fuel duty, and avoid hikes in income tax and VAT, all intended to ease financial pressures.
Labour’s decision to end private school tax breaks has been met with mixed reactions, with some private education advocates arguing it could limit options for families relying on bursaries and scholarships. However, supporters of the move emphasize its potential to significantly elevate the quality of education for the majority of British children.
As the first day of 2025 nears, this reform sends a clear message about Labour’s priorities and its drive to create a more equitable future for the nation’s youth.
Read more about Labour’s “Plan for Change” and what it means for Britain’s education system in our extended coverage.
