A week before the Comprehensive Spending Review, the National Education Union (NEU) has joined with Tax Justice UK to call for progressive tax reforms to be introduced by the Chancellor which could provide greater funding for schools.
The NEU is backing three proposals from Tax Justice UK as to how this funding could be found through closing unfair loopholes and introducing achievable, credible tax reforms. All of these would make the UK a more equal society and bring investment into our public services. These include
- A 2% wealth tax on assets over £10 million, which could raise at least £24 billion annually. This would affect just 0.03% of the population but would have a significant impact on funding for public services.
- Reform of Capital Gains Tax to equalise it with income tax, close loopholes, and eliminate inefficiencies. This reform could generate around £12 billion per year, while also encouraging investment and economic growth.
- End and redirect fossil fuel subsidies to support climate action and invest in the retrofitting of schools. Ending subsidies for oil and gas companies could raise £2.2 billion a year, money that could be reinvested in our schools to improve their safety, energy efficiency, and resilience to climate change.
Government funding decisions have resulted in 70% of maintained schools in England facing real-terms cuts since 2010/11. This includes 66% of maintained primary schools and 88% of maintained secondary schools.
The NEU is calling for education to be funded at 4.5% of GDP - roughly a £14.1 billion real terms increase over three years. Broken down, this would see a £6.4 billion rise in the Schools Block, a £4.7 billion increase in the High Needs Block, a £200 million increase in Pupil Premium and a £2.8 billion increase in capital funding.1
Daniel Kebede, General Secretary of the National Education Union, said:
“Our schools are at breaking point, with cuts leading to fewer resources, larger class sizes, and the erosion of subjects that are crucial to a well-rounded education. The Government must stop short-changing education.
“Now is the time for a wealth tax, and closing unfair loopholes to ensure the very richest pay their fair share. Instead of picking the pockets of our pupils, it’s time to tax profits and prioritise our children and our communities over corporate greed.
“Investment in our public services benefits our whole community and helps to stimulate economic growth. The Chancellor has a clear choice to make at this Spending Review – tax wealth to invest in public services or continue on a trajectory of austerity 2.0”
Caitlin Boswell, Head of Advocacy and Policy at Tax Justice UK said:
“While schools around the country have grappled with cuts and too few resources to give children the education they deserve, the ultra-rich have kept getting richer at everyone else’s expense. Taxing extreme wealth is a textbook example of how to raise revenue to invest in key services we all rely on, like education. The government has a decision to make, it either sides with billionaires and multi-millionaires, or it taxes their riches to make life better for the rest of us.”