Commons Sense

House of Commons · General Debate

VAT: Independent Schools

08 October 2024 · 67 other contributors

Opened by Damian Hinds Con East Hampshire

Summarised by AI from the official record, so it can contain mistakes.

At a glance

Damian Hinds raised concerns about vat: independent schools in the House of Commons. A government minister responded. Other MPs also contributed.

Key points

  • The Government has decided to impose Value Added Tax on independent school fees, effective in 85 days.
  • Critics argue the move undermines educational provision and parental choice.
  • The motion calls for exemptions for specific groups and a full impact assessment.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Damian Hinds Con East Hampshire

The Government has decided to impose Value Added Tax (VAT) on independent school fees, a move that many critics believe undermines educational provision and parental choice. This policy is particularly concerning given the short notice it has been announced with, just 85 days before implementation. The motion calls for exemptions for various groups, such as children of military and diplomatic families, those with special needs, and religious minorities, among others. It also demands a full impact assessment to be published ahead of the Budget.

Other contributors (67)
  • Jim Shannon DUP Strangford

    Questions the rationale behind Labour's policy that imposes VAT on independent schools, highlighting the sacrifices many families make for their children’s education. He finds it difficult to comprehend how a party known for its conscience can penalise those who strive to provide the best educational opportunities for their children.

  • Graham Stuart Con Beverley and Holderness

    Raises concerns about families, particularly one where they sacrificed much to move a bullied child to an independent school due to special educational needs. He argues this policy will disproportionately affect such children and their families.

  • Defends the need for independent schools to pay taxes like any other private business, highlighting that they should contribute as others do in society.

  • Alicia Kearns Con Rutland and Stamford

    Highlights a specific issue with how the VAT policy affects nursery school fees, illustrating the rushed nature of this decision. She emphasises that even a single child's different age could result in all parents paying VAT.

  • Harriett Baldwin Con West Worcestershire

    Questions whether military and diplomatic personnel will be affected by this tax, calling for clarity on exemptions from the Government.

  • Andrew Murrison Con South West Wiltshire

    Calls for inclusion of foreign receipts generated by independent schools in the economic calculus. He stresses that these revenues significantly impact local economies and should be considered when assessing policy implications.

  • Kit Malthouse Con North West Hampshire

    Concerned about potential future tax exemptions, such as those for children’s clothes, he emphasises the wide economic impacts of closing private schools, including job losses in maintenance and building sectors.

  • Mims Davies Con East Grinstead and Uckfield

    Highlights the detrimental effects on various livelihoods within communities due to this policy. She emphasises that independent schools are significant employers for local services, including bus drivers and maintenance teams.

  • Paul Holmes Con Hamble Valley

    Critiques the Education Secretary's tweet as divisive and disrespectful towards independent schools that work hard within rules. He calls for an apology for the negative language used in promoting this policy.

  • Joy Morrissey Con Beaconsfield

    Raises concerns about capacity issues in Buckinghamshire, where many children are educated in special needs and faith schools, and there is insufficient space to accommodate them if they move from independent to state education. She warns of transportation challenges and educational suffering due to the policy.

  • James Murray Lab Co-op Ealing North

    The Government will take tough but necessary decisions, ending tax breaks for private schools to fund improvements in state education. This includes VAT on services provided by such institutions from January 2025 onwards.

  • Graham Stuart Con Beverley and Holderness

    Asked the Minister to ensure that the impact assessment conducted for this policy is shared with the House. Questioned if the Government would publish an overall cost assessment of this policy including legal challenges.

  • Shaun Davies Lab Telford

    Supported the government's plans, believing they will put thousands of teachers back into classrooms and fulfill the aspirations of parents for their children’s education.

  • Priti Patel Con Witham

    Demanded that the impact assessment and cost implications of legal challenges be published by the Treasury. Questioned if this change would proceed in any other manner without affecting these plans.

  • Ben Spencer Con Runnymede and Weybridge

    Expressed concern about moving schools mid-year, pointing out it was challenging for families and children, and asked how many of the Minister's constituents would be affected by this policy.

  • Luke Evans Con Hinckley and Bosworth

    Asked if the Government could delay implementing this policy until after the academic year to mitigate emotional impacts on families and children, emphasising that it was good enough for the Prime Minister to make such choices for his own family.

  • Marie Goldman Lib Dem Chelmsford

    Asked about parents of special educational needs children who rely on private schools due to lack of alternatives, inquiring how those institutions closing would be addressed by the Government.

  • Jennifer Craft Lab Thurrock

    Stressed the importance of addressing SEND education issues and argued that perpetuating a system where only wealthy families can afford private schooling is not the solution for a broken system.

  • Munira Wilson Lib Dem Twickenham

    Called for serious debate on classroom crisis, shortage of specialist teachers, state of school buildings and mental health issues in schools. Argued for increased investment in education to improve opportunities for all children regardless of background.

  • Jessica Brown-Fuller Lib Dem Chichester

    Highlighted the crisis in obtaining EHCPs in West Sussex county council, ranked fifth worst nationally with only 3.6% of applications processed within statutory timeframes.

  • Rupa Huq Lab Ealing Central and Acton

    Emphasised that the term 'private schools' covers a wide range of institutions, noting her own constituency's unique situation with 14 private schools. Offered to meet Front Bench colleagues to discuss local concerns.

  • Shaun Davies Lab Telford

    Questioned why efficiency and creativity are expected from state schools but not from independent schools, suggesting unequal treatment of different sectors.

  • Zöe Franklin Lib Dem Guildford

    Reiterated the crisis in special educational needs and highlighted that a significant number of pupils attend independent schools without EHCPs, advocating for an exemption based on diagnosed SEND or disability allowance eligibility.

  • Jennifer Craft Lab Thurrock

    Asked how to define children with SEND but without EHCPs and questioned the criteria used by private schools claiming specialism in supporting such needs.

  • Josh Babarinde Lib Dem Eastbourne

    Called for a delay in implementation of the policy to avoid chaos, emphasising the importance of community partnerships like Eastbourne college's work within the coastal schools partnership.

  • Gideon Amos Lib Dem Taunton and Wellington

    Underlined that local authorities are ill-equipped to handle a surge in EHCP applications due to previous funding cuts, further disadvantaging children with special needs.

  • Adnan Hussain Ind Blackburn

    Warned of the policy's threat to independent schools' viability and its potential impact on public school capacities, particularly in deprived communities like Blackburn.

  • Louise Jones Lab North East Derbyshire

    I am proud to be part of a Government putting state education at the heart of our mission. I have seen the challenges schools face due to austerity and am glad we are investing more in state education for 75% of children.

  • Alicia Kearns Con Rutland and Stamford

    The Government's decision regarding independent school funding is cruel, damaging the prospects of both state and independent schooling. This policy overlooks rural economies and families who have worked hard for their children’s education. There are heartbreaking cases where twins question if they can sit their GCSEs due to lack of space in state schools.

  • Ben Coleman Lab Chelsea and Fulham

    Intervened asking the hon. Member for Rutland and Stamford to apologise for the SEND system left as a legacy by her party, highlighting that councils and families are turning to private sector due to lack of support in state education.

  • James Frith Lab Bury North

    I support Labour’s plans to end the state subsidy of private schools, and it is right that they pay VAT. Forty-three per cent. of children in Bury North live in poverty. Under this Government’s plans, private schools will become subject to VAT, but I would gently push back on the notion that costs will automatically mean fee rises for these schools. As someone who served as a state school governor until recently, I have seen at first hand the budgetary pressures enforced on the schools that teach 93% of our children.

  • Joe Robertson Con Isle of Wight East

    I urge the Government to act quickly to deal with the pressures in health and social care, particularly by redirecting existing funding better to community services. Not every independent school is wealthy or famous; there are good community independent schools such as Ryde School on the Isle of Wight, which provides a competitive astroturf for local hockey teams and football teams. The Government must recognise this contribution.

  • John Grady Lab Glasgow East

    John Grady paid tribute to his predecessors, highlighted the importance of state education in his family’s life, and emphasised the role of the government in supporting families struggling with educational costs. He celebrated Glasgow's rich cultural heritage and history, including its contributions to arts, football, and immigration. Grady also spoke about poverty and housing challenges faced by residents of Glasgow East but praised local community efforts in providing support.

  • Stuart Anderson Con South Shropshire

    Anderson expressed concern over the aspiration tax on independent schools, arguing that it would impact families who work hard to provide their children with better educational opportunities. He highlighted his personal experience and the challenges faced by military families in securing quality education for their children due to frequent moves. Anderson urged the government to reconsider the timing of this policy implementation.

  • Antonia Bance Lab Tipton and Wednesbury

    I am honoured to speak for the first time in this House as the Member of Parliament for Tipton, Wednesbury and Coseley. We are an industrial constituency shaped by factories, foundries, mines, and canals, with a rich history of workers' rights activism. Despite challenges, we remain proud and resilient. I am proud to wear the 'Made in Britain' badge and support modern manufacturing. The Labour party aims for prosperity through progressive policies that raise wages and improve education opportunities.

  • Gregory Stafford Con Farnham and Bordon

    I thank Antonia Bance for her passionate speech but argue against the proposed tax on independent schools. This policy will affect more than 3,000 pupils in my constituency who attend private education as well as those with special educational needs. It is a shame that Labour forgets about the impact on state sector and the economy. Independent SEND schools are saving local authorities money, and this proposal could lead to significant financial burdens for these institutions.

  • Connor Naismith Lab Crewe and Nantwich

    I refute Conservative claims that our policy is an attack on parental aspiration. The majority of children in the UK attend state schools, not private ones. Our decision aims to improve educational opportunities for 93% of students by investing £1.3 billion into state education. We reject a two-tier approach and will ensure that state schools have the necessary resources to deliver high-quality education.

  • Sureena Brackenridge Lab Wolverhampton North East

    Discussed the shocking reality in state-funded schools including high school absence rates, SEND crisis, children's mental health crisis, teacher recruitment and retention crisis. Highlighted negative impacts on learning and enjoyment of school despite efforts by teachers and support staff.

  • Priti Patel Con Witham

    Critiqued the policy as dogmatic and rooted in politics of envy, called for transparency regarding costs, implementation details, and fiscal projections. Questioned the justification for the policy, its implications on local authorities, and raised concerns about increased class sizes and educational outcomes in state schools.

  • Laurence Turner Lab Birmingham Northfield

    Schools face severe funding constraints with real-terms cuts of around 3% per pupil, resulting in loss of staff and increased class sizes. Despite welcome initiatives from the Government, the motion to exempt children on SEND support from VAT is problematic as it could create false incentives for independent schools. The current policy aims to address these issues effectively.

  • Claire Coutinho Con East Surrey

    With one in four pupils attending an independent school in Surrey, the proposed exemption of specialist schools from VAT would be unjustifiable and could lead to a significant number of children being moved back into state schools without adequate support. This move would exacerbate issues within the already stretched state sector, potentially increasing class sizes and worsening educational outcomes for all children.

  • Warinder Juss Lab Wolverhampton West

    Private schools have enjoyed a VAT exemption that should be ended as they are businesses. The claim that many students will leave private education to join the state system is unfounded, and there has been consideration given to the implementation timing to reassure parents.

  • Luke Evans Con Hinckley and Bosworth

    The debate revolves around ideological versus practical considerations. While respecting Labour’s mandate, the lack of a public impact assessment is concerning. Implementation in January could cause disruption for children moving from private to state education without adequate preparation or infrastructure.

  • David Baines Lab St Helens North

    The last Tory Government dismantled public services, including state schools. In St Helens North, funding cuts have been £3 million since 2010 and standards have fallen due to lack of investment.

  • Caroline Johnson Con Sleaford and North Hykeham

    The imposition of VAT on independent school fees will affect students in exam years, potentially disrupting their studies. It may also reduce the amount of bursary support available to students from less wealthy families.

  • Laura Kyrke-Smith Lab Aylesbury

    The SEND system is broken and needs reform and funding. Parents are treated poorly when seeking assessments or diagnoses, schools lack the staff or training to manage complex needs, and there is a lack of accountability within the system.

  • Andrew Snowden Con Fylde

    The policy will hurt independent schools and state sector more. Parents are making personal sacrifices for their children's education and should not face a tax on it. The imposition is economically illiterate and will worsen problems in the state system.

  • Daniel Francis Lab Bexleyheath and Crayford

    Francis highlighted the challenges faced by state schools due to budget cuts and poor SEND inspection results in his constituency. He criticised the Conservative party for its decisions over 14 years that have impacted local children's education negatively. He also mentioned a financial donation from an independent school to a Conservative association, indicating a disconnect between independent and state sectors. He will oppose the motion supporting VAT on private schools as it aligns with the mandate he received in his constituency.

  • Peter Fortune Con Bromley and Biggin Hill

    Fortune argued against the imposition of VAT on independent schools, claiming it would disrupt children's education mid-year and force them to switch schools at crucial times like GCSEs and A-levels. He cited estimates suggesting thousands of pupils could leave private schools, impacting small schools disproportionately and putting pressure on state schools. Fortune described the policy as cruel and a lack of understanding in governance.

  • Jonathan Brash Lab Hartlepool

    Brash, new to Parliament and formerly an independent school teacher, defended the proposal for VAT on private schools, emphasising it is about fairness. He argued that charging £15,000 annually for education does not qualify as charitable. He criticised the opposition's focus on this issue instead of addressing wider educational crises affecting state schools and local authorities.

  • Christine Jardine Lib Dem Edinburgh West

    Jardine expressed concerns about the practicalities of removing VAT exemption from private schools, particularly in terms of resource allocation to accommodate increased numbers at state schools. She highlighted issues such as over-capacity in local state schools and questioned how resources would be managed effectively when children transition from private to public education systems.

  • Christopher Vince Lab Co-op Harlow

    I find it incredible that the Conservatives want to debate education after their poor record, but I am not surprised. As a former teacher, I saw the Conservative Government’s impact firsthand. Spending per pupil in England fell by 9% in real terms between 2010 and 2020, with many schools in deficit and struggling with funding for SEND provision. In 2022, 40% of trainee teachers failed to qualify due to high workloads. RAAC issues have worsened, impacting school facilities like kitchens at Jerounds primary school. Labour’s plan includes removing the tax exemption on private schools to generate funds for state education.

  • Simon Hoare Con North Dorset

    The change should be delayed until September 2025 and exemptions provided for SEND, military children, and diplomatic service. Bryanston school contributes £24 million annually to the local economy in North Dorset. Labour’s proposed policy is not well-received locally; their candidate even sought an exemption for Bryanston. The Secretary of State's divisive language about 'our children' versus those in private schools is damaging.

  • Darren Paffey Lab Southampton Itchen

    This Government will take action to bring opportunity and ambition to all 100% of our children. The Opposition should regret their record on underfunding state schools, closing Sure Start centres, and growing child poverty. Private school fees are not expected to increase significantly; claims of an exodus from private to state schools are unfounded. This policy aims for fairness by using the money saved to improve all state schools. Constituents in Southampton face challenges like donations being asked for at schools.

  • Saqib Bhatti Con Meriden and Solihull East

    Critiques the Government's proposal to increase VAT on private school fees, emphasising that it will disproportionately affect lower-income families who rely on bursaries and scholarships. He highlights the ideological nature of this policy and questions its impact on state schools.

  • Josh Fenton-Glynn Lab Calder Valley

    Argues against the focus on private education, pointing out underinvestment in state schools' infrastructure and staffing. He advocates for prioritising special educational needs and disabilities (SEND) provision as a more pressing issue.

  • Jerome Mayhew Con Broadland and Fakenham

    Raises concerns about the implementation of the VAT increase, particularly its timing mid-academic year. He questions the lack of evidence supporting the policy's objectives and highlights potential negative impacts on children’s education.

  • Alan Gemmell Lab Central Ayrshire

    Critiques the impact of austerity measures and financial mismanagement on Scottish schools, particularly in North Ayrshire. He supports increased education spend suggested by the proposed VAT policy as a positive step for young people.

  • Ben Spencer Con Runnymede and Weybridge

    Families in my constituency are concerned about the impact of the new policy on independent schools moving to state education. The pressure will be significant, especially for children with SEND who rely on private institutions for their needs. There is no data supporting this measure.

  • Paul Waugh Lab Co-op Rochdale

    The Conservative leadership focuses more on the 7% of pupils in private schools than the 93% in state education, ignoring the financial challenges facing public schools. State spending per pupil has decreased since 2010 and there has been no overall growth for 14 years, leading to a significant funding gap.

  • Richard Tice Reform Boston and Skegness

    The Government's choice will not raise the expected funds due to many students with special educational needs moving from private schools into state education. This policy may result in bigger class sizes, increased pressure on teachers, and additional costs for local authorities.

  • Baggy Shanker Lab Co-op Derby South

    VAT will be levied on private schools to generate £1.3 billion which will be reinvested into state education to recruit more teachers, improve Ofsted, provide early speech and language intervention for young children, mental health support in secondary schools, and expand careers advice.

  • Sam Rushworth Lab Bishop Auckland

    The speaker highlights the role of an independent school in his constituency and argues for its charitable status. However, he criticises Conservative policies on education funding cuts, apprenticeship reductions, youth service cuts, Sure Start closures, and the scrapping of child trust funds. He also mentions that private school fees have increased by 55% over two decades without opposition from Conservative members.

  • Mike Reader Lab Northampton South

    The speaker discusses his background as the son of educators and highlights the Government's focus on improving state education standards. He criticises the Conservatives for leaving behind many children in education and not listening to those crying out for help. He argues that no one wants to see the state education sector fail, and he urges all Members to support the policy for its benefits.

  • Nigel Huddleston Con Droitwich and Evesham

    Criticises the proposed education taxes on independent schools, arguing they are based on politics of envy rather than evidence. Emphasises the detrimental impact these taxes will have on both state and private schools, potentially leading to increased costs for taxpayers due to displaced students from independent to state schools. Highlights concerns over the timing of implementation, lack of exemptions, and implications for pupils with special educational needs (SEND). Expresses disappointment in the Secretary of State's divisive language towards parents who choose independent education.

  • Stephen Morgan Lab Portsmouth South

    I thank the Opposition for bringing forward the debate. While the focus has been on private schools and the implications of the planned tax changes, it has allowed us to consider what is important in education. It is important to support the aspirations of all young people and their parents, and it is essential that all young people receive a good education in a safe and supportive environment. Ending the tax breaks on VAT and business rates for private schools is a necessary decision to drive high standards across our state schools and give every young person the best start in life. This will generate additional funding to help improve public services, including the Government’s commitments relating to children and young people. The Treasury is assessing the impact of these changes in advance of the Budget. Pupils who need a local authority-funded place in a private school, including those with an EHCP, will not be affected by the changes. Members from both sides of the House mentioned transfers to the state-funded sector. There are always some pupils moving between the private and state-funded sectors. We do not accept that recent closures have any connection to our policy on VAT. Any displacement is likely to take place over several years and mostly come from parents choosing not to place their children in the private sector initially.

  • Caroline Nokes Con Romsey and Southampton North

    Will the Serjeant at Arms investigate the delay in the No Lobby?

Government Response

The Government will always support parents' right to choose where to educate their children. Ending tax breaks on VAT and business rates for private schools is necessary to drive high standards across our state schools and give every young person the best start in life. This will generate additional funding to help improve public services, including commitments relating to children and young people.

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