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Independent School Fees: VAT
21 February 2024
Lead MP
Andrew Lewer
Northampton South
Con
Responding Minister
Not recorded
Tags
TaxationChildren & Families
Word Count: 9344
Other Contributors: 13
At a Glance
Andrew Lewer raised concerns about independent school fees: vat in Westminster Hall. Response awaited from government.
Key Requests to Government:
Lewer urges the Government to maintain its stance against imposing VAT on school fees, given Labour's current lead in polls. He calls for a robust defence of parental choice and the principle that education should not be taxed, emphasizing the potential harm to smaller independent schools and families struggling to afford increased fees.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Andrew Lewer is concerned about the impact of Labour's proposed policy to introduce a 20% VAT fee on independent school fees. He notes that over 600,000 children are educated in the independent sector, saving UK taxpayers more than £4 billion annually and supporting 328,000 jobs and £5.1 billion in tax revenue. Lewer argues against the policy's portrayal of independent schools as elitist and highlights the diverse contributions these institutions make to society through partnerships with state schools and provision for special educational needs.
Argued that reducing capacity in the independent sector would exacerbate problems for state schools, mentioning excellent local independent and state institutions.
Darren Henry
Con
Broxtowe
He is concerned that removing the VAT exemption for independent schools will lead to an increase in school fees, causing many parents who barely afford current fees to lose their options. He calculated a local high school could lose 20% of its students if the change happens. Smaller schools would struggle and may close, resulting in job losses and reduced choice for families. The impact also extends to non-fee-paying schools with potential class size increases and resource strain. Military families moving mid-year might be particularly affected. Schools that currently provide their facilities at no cost will face challenges due to VAT introduction.
David Simmonds
Con
Ruislip, Northwood and Pinner
He highlighted the impact of VAT on small independent schools providing specialized education for children with special educational needs. These settings are legally registered but often not charitable trusts, raising concerns about the cost implications for both local authorities and parents. He fears that introducing VAT would jeopardize highly specialised private provision, affecting families who have found suitable settings after years of searching.
Helen Hayes
Lab
Dulwich and West Norwood
Discussed the impact of independent schools on state education, mentioning initiatives like the London Challenge that improved state school performance. Cited a report suggesting VAT levied on private schools would generate £1.3 billion annually without affecting pupil numbers significantly. Addressed concerns about special school exemptions and discussed funding disparities between state and independent schools.
Jim Shannon
DUP
Strangford
Taxing private schools out of existence is not the right approach, as it would limit access for many families who seek a better education and could harm the local economy by reducing international student enrollment.
John Hayes
Con
South Holland and The Deepings
Asked how the Labour party perceives innovation within the independent sector, citing examples like Steiner, Bedales, and Summerhill schools that could only exist in private settings.
He congratulated his hon. Friend on the debate and raised concerns from headteachers in his constituency about potential school closures due to unaffordable fees with the VAT increase, which could lead to a surge of students moving into state schools.
Munira Wilson
Lib Dem
Twickenham
Liberal Democrats oppose taxing education, including independent schools. They support choice but advocate for a high-quality state sector and partnerships between state and independent sectors. Taxing independent schools would reduce such collaboration and affect parents who opt for them due to unmet needs in the state system.
Neil Hudson
Con
Epping Forest
He congratulated his hon. Friend on securing the debate and emphasised the importance of independent schools' outreach work, including access bursaries and sports facilities for local communities. He expressed concern that Labour's policy on VAT would compromise these schools, leading to parents pulling their children out and increasing pressure on state schools.
Paul Scully
Con
Braintree
Economically and educationally, the VAT on independent schools is not sensible. The policy threatens fragile prep schools and could lead to collapses in rural areas with small state schools lacking capacity.
The Chair of the Education Committee highlighted concerns about Labour's policy proposal, noting a lack of support from Back Benchers in previous debates. He worried about the financial implications for publicly funded schools and questioned whether Labour had adequately calculated costs associated with expanding state school capacity. The MP also raised issues regarding SEND pupils and called for clarity on exemptions for specialist settings.
Sally-Ann Hart
Con
Hastings and Rye
Labour's plan to charge VAT on independent schools is based on politics of envy, intended to harm both sectors without proper consultation. In Hastings and Rye, the quality of state education has improved significantly since 2010 due to positive government policies. Highlighted how major private schools provide 100% bursaries to children from disadvantaged backgrounds, enabling them to benefit their communities.
Suella Braverman
Con
Fareham and Waterlooville
The MP criticised Labour's proposal to remove VAT from independent schools, describing it as a cynical move aimed at political gain rather than addressing educational needs. She highlighted the economic contributions of independent schools, including £16 billion to the economy and supporting 300,000 jobs contributing £5 billion in tax revenue. The MP also expressed concern over the impact on pupils with special educational needs and fears that removing VAT would harm social mobility.
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About Westminster Hall Debates
Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.