LONDON — A fresh Brexit battle kicked off after Germany and France warned Britain not to slap a tax on international private schools.
The two countries’ ambassadors to the U.K. warned that a planned “reset” of post-Brexit ties could be imperiled if the British government presses ahead with a plan to charge value added tax (VAT) on fees for schools.
The government — which unveils a budget this week — is promising to ax an existing VAT exemption on private school fees from January.
This will result in an additional 20 percent charge to fees if schools themselves do not absorb the cost. Labour says it will help fund more investment in, and extra teachers for, the state sector.
But Miguel Berger and Hélène Duchêne, the German and French ambassadors to London respectively, argued that the institutions — which are primarily for the benefit of expatriates and don’t follow the U.K. national curriculum — are not “conventional” private schools and should not be swept up in Labour’s changes.
The pair top of diplomats pointed out that international schools are partially funded by overseas governments, and said an extra charge could therefore hamper relations.
Duchêne told the Financial Times applying VAT was “not in line with the reset to our relationship which the British government has instigated.”
Duchêne said: “We are not asking for an exemption to the rule; we are not the target of this VAT measure. Our schools are different from the target ones, since we follow special courses preparing for French exams.”
Berger told the same paper that a German school in Richmond, south west London, is “totally distinct from British private schools” and deserved to be treated differently.
“We would really like to see the British government recognize the importance of these schools — not only for our political and cultural relations but also for the people this will affect,” he said.
