Commons Sense

House of Commons · Westminster Hall

Independent Schools: VAT and Business Rates Relief

03 March 2025 · 21 other contributors · 23,238 words

Opened by John Lamont Con Berwickshire, Roxburgh and Selkirk

Responding minister: Torsten Bell

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

At a glance

John Lamont raised concerns about independent schools: vat and business rates relief in Westminster Hall. A government minister responded.

Key points

  • The petition against VAT on independent school fees gained over 114,000 signatures in two months.
  • The policy will increase costs for parents, who argue that not all independent school parents are wealthy enough to bear additional tax burdens.
  • The Government aims to improve state education and has introduced reforms that will raise about 1.8 billion a year.

Key requests to Government

The lead MP asks the government not to apply VAT to independent school fees or remove business rates relief.

How the debate unfolded

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

Opened the debate

John Lamont Con Berwickshire, Roxburgh and Selkirk

The petition gained over 114,000 signatures in two months. The policy will burden parents with huge costs when bills are already high; it wrongly assumes that all independent school parents are immensely wealthy and can afford to pay more taxes. Vulnerable pupils seem to have been neglected entirely by the Government. The policy could be devastating for those who will have to start again somewhere new, causing disruption in their education and emotional distress.

Other contributors (21)
  • Alison Taylor Lab Paisley and Renfrewshire North

    Families make sacrifices to be able to afford private school fees. The new VAT measures have led to a 20% increase in school fees from the beginning of 2025, which is difficult for families. Defends the policy as raising £1.8 billion for the state sector and argues that schools can offset some of the VAT, reducing the increase from 20% to closer to 15%.

  • Aphra Brandreth Con Chester South and Eddisbury

    This policy is about Labour’s ideology and not about improving education for all children across our country, irrespective of whether they are in the state sector or the independent sector.

  • Christine Jardine LD Edinburgh West

    Representing a part of Edinburgh where one in four or five pupils attend independent schools, she highlighted concerns about school capacity issues due to the influx of students moving from private to state education.

  • Clive Jones LD Wokingham

    The Government’s policy will harm SEND children currently enrolled in independent schools and may cause schools to cut scholarships and bursaries.

  • Al Pinkerton LD Surrey Heath

    Highlights the importance of small independent schools in Surrey Heath for providing tailored education and support for children with special educational needs, as well as stability for military families amid frequent relocations.

  • Arthur Lab North East Fife

    Questions whether 'tens of thousands' of students moving to the state sector from independent schools is an accurate estimate, suggesting it makes serious debate difficult. Asked about alternatives to current funding solutions and acknowledged the debate's focus on full state schools and their issues.

  • Huq Lab Ealing Central and Acton

    Acknowledged that no one is judging other parents’ decisions regarding their children's education.

  • Philippa Whitford SNP Central Ayrshire

    Challenged the assertion that half of the people in Edinburgh voted for this policy, mentioning that there are 311 signatories to the petition from Dr Arthur's constituency.

  • Rosena Allin-Khan Lab Tottenham

    Pointed out that Conservative and Liberal Democrat Members thought nothing about introducing university fees, which place a huge cost on education, particularly for people from poorer backgrounds.

  • Rupa Huq Lab Ealing Central and Acton

    Addresses concerns of constituents with private schools in their area; highlights 821 signatures from Ealing Central and Acton. Discusses unintended consequences like difficulty obtaining education, health and care plans for special needs children. Asked whether Christine Jardine accepted that it is often the parents who want their daughters to have an all-girls education, referencing figures from the Girls’ Schools Association.

  • Scott Arthur Lab Edinburgh South West

    The hon. Gentleman noted that while many thousands of children will face displacement, Edinburgh is likely to see between 50 and 60 pupils moving from private to state education.

  • Gagan Mohindra Con South West Hertfordshire

    Stated that education has always been an important part of his purpose in coming to this place and highlighted his personal experience with dyslexia, emphasizing the importance of a good educational system.

  • Gregory Stafford Con Farnham and Bordon

    The British people did not vote for Labour based on this policy and they did not understand the effect that it will have, not just on the independent sector but on the state sector. The VAT policy is financially valueless, taxing education where it has never been levied before. It impacts faith schools, arts schools, single-sex schools, and independent schools for armed forces parents. One school in Farnham will close by the end of this academic year due to financial difficulties exacerbated by the Labour party’s policies on low-fee schools.

  • Jack Rankin Con Windsor

    Defends Eton, mentioning that its sports centre is used by local schools and community groups. Points out that not all private schools are Eton and suggests some points about Eton are unfair. Discussed the impact of proposed policy on independent schools and families in Windsor, highlighting financial strain and challenges for parents.

  • Monica Harding LD Esher and Walton

    The VAT increase on independent school fees threatens to undermine partnerships between state and private schools. It also exacerbates pressures in an already strained special educational needs system, with over 3,000 children waiting for diagnosis for autism and ADHD.

  • Gagan Mohindra Con South West Hertfordshire

    Asks what actions the hon. Member expects from her Government if they will not give way on this point, suggesting implementing it differently based on school turnover rather than affecting smaller schools.

  • Munira Wilson LD Twickenham

    Welcomed good news about educational choices but highlighted the impact of the policy on parents choosing private schools.

  • Neil O'Brien Con Harborough, Oadby and Wigston

    Responded to Dr Arthur's comment regarding the introduction of tuition fees in 1998.

  • Neil O’Brien Con Harborough, Oadby and Wigston

    He criticised the Government for taxing education, highlighting that previous Governments of all colours avoided it. He mentioned that even some Government Ministers have doubts about this policy.

  • Rachel Gilmour LD Tiverton and Minehead

    As a mother of two Old Etonians, she argues that Eton offers free fees to 100-plus boys annually, providing substantial benefits to local communities. She criticises the unfairness of targeting Eton in discussions. Parents of independent school students have made many sacrifices to provide the best possible education for their children. This policy would overturn a long-established VAT exemption on independent schools, which will hit hard-working families the most.

  • Richard Tice Reform Boston and Skegness

    Congratulates the hon. Member for Berwickshire, Roxburgh and Selkirk on securing this debate, focusing on concerns about the impact of taxing independent schools.

Government Response

Torsten Bell

The Parliamentary Secretary to the Treasury

The Government are motivated by the goal of improving state education and have made tough but necessary decisions. The reforms will raise about £1.8 billion a year, with £2.3 billion increase to the core schools budget announced in the autumn Budget. While private schools now charge VAT, they can recover it when purchasing goods and services. The Government are also legislating to remove charitable rate relief from private schools from April. However, this will affect some parents and carers financially.

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