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Independent Faith Schools: VAT — [Sir Alec Shelbrooke in the Chair]
26 February 2026
Lead MP
Jim Shannon
Strangford
DUP
Responding Minister
Olivia Bailey
Tags
EducationTaxationChildren & Families
Word Count: 6005
Other Contributors: 3
At a Glance
Jim Shannon raised concerns about independent faith schools: vat — [sir alec shelbrooke in the chair] in Westminster Hall. A government minister responded.
Key Requests to Government:
I ask the Minister to propose a VAT registration threshold for independent schools charging below £7,690 per pupil, which would protect low-income families, preserve community-based education, maintain educational diversity, and avoid unnecessary pressure on the state system. The estimated loss of VAT revenue from this proposal is only 2% of the projected £1.5 billion raised annually.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
I am concerned about the impact of VAT on independent faith schools. About 370,000 pupils in England attend independent schools with a religious ethos, and many are not wealthy but work hard to afford these schools for their children's education. Since July 2024, 110 independent schools have closed, affecting nearly 9,500 students, including almost 2,500 with special educational needs and disabilities. The Independent Schools Council reports a drop of 5.2% in the number of pupils since 2023 and a fall of 3.6% in the past academic year alone.
Ashley Fox
Con
Bridgwater
I appreciate the solution that the hon. Gentleman is presenting for faith-based schools, but does he accept that any tax on education is wrong in principle? Would he support my party's policy of reversing the burden of VAT for all independent schools? Mr Fox questioned where the money raised from the VAT on independent faith schools has gone, pointing out that despite Labour's promise to use it for hiring more teachers, there were actually fewer teachers employed in November 2025 compared to the previous year.
Ian Sollom
Lib Dem
St Neots and Mid Cambridgeshire
The Liberal Democrats oppose taxing education, including independent faith schools. Ian Sollom highlighted the impact of VAT on families who have already paid taxes and noted that many parents are forced into private schooling due to issues with state schools or unavailability of places.
Joy Morrissey
Con
Beaconsfield
Ms Morrissey argued that the VAT imposed on independent faith schools is a vindictive tax punishing those who want choice in religion and education, especially for parents with special educational needs (SEND) children. She cited instances where families are forced to choose between paying additional taxes or sending their child to a school they believe does not meet their religious or educational needs. Acknowledged the speed with which she assembled her speech for the debate but did not elaborate further on its content.
Government Response
Olivia Bailey
Government Response
The Government respects faith schools' contributions to education and values parental choice. However, due to fiscal constraints inherited from previous governments, the VAT policy remains applicable to faith schools to protect public finances. The Minister noted that private school fees have increased by 75% in real terms since 2000 without affecting pupil numbers. She emphasized that only one third of all faith schools are state-funded and highlighted efforts to support private faith schools interested in joining the state sector, noting one instance where a private faith school transitioned into a voluntary-aided maintained faith school in September 2025. The Minister also addressed concerns about potential closures, stating that an average of 74 private schools close annually with only 60 closing in academic year 2024-25, reflecting historical patterns. Additionally, the Government is recruiting teachers and has increased core school funding significantly through the VAT policy.
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Assessment & feedback
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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.