One in ten wealthy families could move abroad to avoid tax raids on private schools

Dr Michael Peacey, senior lecturer in economics at the University of Bristol, added that while wealthy families are most able to support the UK economy, “they are also likely to be the most internationally mobile, with a significant number of respondents considering moving abroad”.

He said it was an “area of ​​concern” that was “obviously worrying a lot” of wealthy families who were otherwise optimistic about their finances.

The Saltus Wealth Index ranges from 0 to 100, with higher scores describing greater confidence in the UK economy and people’s personal finances. In September it rose to 66.9 – the highest level since the start of 2022 and an increase from the previous reading of 64.4 in January.

However, for wealthy families, private school fees have become a major problem – along with general health concerns, the general economic situation and the prospect of losing money.

A total of 11 percent said they would ask friends or family to help them with their children’s tuition in the future. Another 10 percent said they would need an emergency loan from mom and dad’s bank to scrape together tuition for this year, but would have to take their children out of private school next summer anyway.

The government hopes the tax crackdown will raise up to £1.5 billion, which it will invest in improving standards in state schools. Sir Keir Starmer has said that the government’s plans include hiring 6,500 new teachers and introducing free breakfast clubs for all primary schools in England.

Ms Reeves said on Monday that an initial 750 primary schools will take part in a breakfast club pilot programme from April next year.

The government has not yet announced when it will extend the scheme to the remaining 16,000 primary schools in England. Ministers have previously said VAT on private schools will come into force “as soon as possible” so they can implement their plans for the state sector without delay.