Labour leader Sir Keir Starmer has proposed implementing VAT on private school fees if elected. The Institute of Economic Affairs hosted a debate weighing the pros and cons, with Max Marlow of the Adam Smith Institute arguing for the VAT exemption as education provides public benefits, while IEA's Daniel Freeman advocated applying VAT universally for a simpler tax base. The two free market think tankers delved into defining public goods, market distortions from tax exemptions, and impacts on private school enrollment if fees increase. Examining the philosophical role of the state vis-a-vis education and optimal tax policy principles, the lively exchange highlighted the nuances around this controversial issue.