I don't think slapping vat on private schools would be a net gain for the state. Increasing the price via taxation means all you do is push the poorer (relatively) parents out of being able to access these schools and push the children into the public schools. Some private schools would have to close as well. Richer parents will just send their kids abroad or hire private tutors. And what are you on about with 'markets' we don't have anything like a true market system for education when 93% off of children are educated at state run schools. You want to really shake up education and get markets going .... Make all schools private and give parents a voucher for their child's education instead of the current system.