Labour leader Andy Burnham has indicated plans to explore closer ties with the European Union, including a possible return to the Single Market. Such a move would compel the UK to comply with EU rules that prohibit charging VAT on education, potentially forcing the government to abolish VAT on private school fees.
At the recent Labour conference, Mr Burnham criticised Brexit, stating it had caused more harm than good and that all avenues regarding the UK’s future relationship with the EU remain under consideration. As Makerfield MP, he has expressed intent to investigate various options to strengthen connections with Brussels.
EU regulations require member states to exempt the provision of education to children and young people from VAT, including schooling and university education. This conflicts with Labour’s current policy of imposing VAT on private school fees.
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Saqib Bhatti, the Conservative shadow education minister, argued that Mr Burnham appeared unaware that rejoining the EU would invalidate Labour’s current approach, describing it as a “spiteful class war on independent schools.” He suggested that either Mr Burnham has recognised the detrimental effects of the education tax and is considering reversing it, or he is announcing policies without thorough groundwork.
Inside Whitehall, officials expressed surprise at the Prime Minister’s announcement, saying it diverged significantly from existing plans. One source described the renewed ambition as exciting but acknowledged the challenge in determining next steps under this new approach.
A cabinet minister highlighted the importance of clarity concerning the UK’s European relationship. They noted evolving circumstances since 2016, including the Ukraine conflict and shifts in US politics, but remarked that many questions remain about the ultimate objective.
Polling data reportedly shared in Downing Street shows growing public support for EU reentry, with 59 per cent of Britons in favour and 32 per cent opposed. Support among Labour voters is particularly strong at 85 per cent, with similarly high backing among Liberal Democrats and Greens.
Mark Leonard, director of the European Council on Foreign Relations, commented that Mr Burnham’s approach could break through the economic stagnation in UK-EU relations. He noted that previous efforts under the Starmer leadership had limited impact due to competing priorities among European leaders and slow negotiations. Mr Burnham’s strategy has captured attention and altered the dynamics, prompting renewed engagement from EU counterparts.