LABOUR is exploring the possibility of imposing tax retroactively on private school fees, it was revealed today.

It comes amid concerns that parents could sidestep extra costs from Labour’s plan to abolish tax exemption for private schools by paying for years of schooling in advance.

Shadow education secretary Bridget Phillipson signalled that the party is looking at drawing on changes to VAT, brought in by former Tory chancellor George Osborne, to block wealthy parents from dodging the tax.

Ms Phillipson said that if Labour won the general election, the party would enact the legislation with stringent measures to eliminate loopholes.

Speaking at the Centre for Social Justice, Ms Phillipson said: “We would make sure that the legislation is drawn in such a way to ensure that avoidance can’t take place.

“There is precedent for that.

“Back in 2010, George Osborne, when he made VAT changes, did something very similar.

“So we’re clear there was precedent when the legislation was drawn in such a way that it is effective in raising the money that we need to invest in our state schools.”

In 2010, Mr Osborne introduced “anti-forestalling provisions” after he raised VAT to 20 per cent from 17.5 per cent, to prevent people from applying the previous rate for goods and services to pre-payments.

Under the rules, VAT could still be applied to payments made before Labour implements the legislation, should schooling take place while the policy is in place. 

Ms Phillipson also suggested Labour would increase digital monitoring of children to improve school attendance rates.

The minister said Labour would continue to fine absences, and introduce a national register for children not in school, using AI to spot trends in non-attendance and “improve co-ordination between education, social care and the wider services.”

National Education Union general secretary Daniel Kebede warned that joining up systems which collect data on children must take account of the risks involved.

“Processes and purposes must be transparent; data must not be exchanged with commercial companies or used for such purposes as control of migration,” he said.

“Healing our damaged education system needs to involve rebuilding and resourcing local authorities to have the capacity to support schools. 

“Children’s services have been decimated through austerity and they will need to be painstakingly rebuilt if Labour are to achieve their aims.”