Asked by: Lord Alton of Liverpool (Crossbench - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of their duties under the UN Convention on the Rights of the Child in relation to the imposition of VAT on independent schools, including those catering for the needs of children with special educational needs.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
On 29 July, the Government announced that, as of 1 January 2025, all education services and vocational training provided by a private school in the UK for a charge will be subject to VAT at the standard rate of 20 per cent. This will also apply to boarding services provided by private schools.
The Government gives due consideration to the UN Convention on the Rights of the Child (UNCRC) articles when making new policy. State education is accessible to all children, regardless of their financial status and all children of compulsory school age are entitled to a state-funded school place if they need one. Education matters and is at the heart of our mission to break down barriers to opportunity so every child gets the best start in life.
The Government is also committed to ensuring that all children’s needs are met. This Government’s ambition is that all children and young people with Special Educational Needs and Disabilities (SEND), with an Education, Health and Care Plan (EHCP) or not, receive the right support to succeed in their education and as they move into adult life. We are committed to improving inclusivity and expertise in mainstream schools, as well as ensuring special schools cater to those with the most complex needs.
Asked by: Baroness Wolf of Dulwich (Crossbench - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what the total levy for the apprenticeship budget was in the 2022–23 financial year; and how much of this was allocated to the devolved governments using the Barnett formula.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Apprenticeship Levy (AL) is currently paid by large employers, charged at a rate of 0.5% on an employer’s annual pay bill of over £3 million. HMT then sets the Apprenticeship Budget at each Spending Review, which funds all apprenticeship training in England – both existing and new apprenticeships – across all employers. In FY22-23, £2,554 million was allocated to the Apprenticeship Budget in England.
While the Apprenticeship Levy is UK wide, apprenticeship policy and spending is devolved. From FY2017-18 to FY2019-20, the devolved administrations received a population share of the Office for Budget Responsibility’s apprenticeship Levy forecast. Beyond 2019-20, the devolved administrations received funding through the Barnett formula in relation to English apprenticeship spending. The Block Grant Transparency publication which is available on GOV.UK sets out all Barnett consequentials generated at both departmental and programme level. It is for the devolved administrations to allocate their funding in devolved areas as they see fit, including investing in their skills programmes.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the annual loss of tax revenue from small businesses.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
HMRC is committed to tackling all forms of non-compliance, including evasion. Each year HMRC makes an annual assessment of the tax gap, which is the difference between the amount of tax that should, in theory, be paid, and the amount that is actually paid. The latest published tax gap is for 2022-23 and was 4.8% of theoretical liabilities, or £39.8bn. The element attributable to small businesses is 60% (£24.1bn) of that overall tax gap.
HMRC publishes these estimates in its annual ‘Measuring the Tax Gap’ report. https://www.gov.uk/government/statistics/measuring-tax-gaps
The tax gap derives from a wide range of non-compliant behaviours, from simple errors at one end of the spectrum to more deliberate behaviours at the other, requiring different approaches to tackle it. The Government is committed to ensuring that businesses and individuals pay the taxes they owe.
Asked by: Earl of Clancarty (Crossbench - Excepted Hereditary)
Question to the HM Treasury:
To ask His Majesty's Government whether they intend to exempt foreign schools, including members of International French Schools UK, from the requirement for independent schools to pay VAT on their fees; and what discussions they have had on this both with the foreign schools concerned and with the ambassadors of their countries.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
On 29 July, the Government announced that, as of 1 January 2025, all education services and vocational training provided by a private school in the UK for a charge will be subject to VAT at the standard rate of 20 per cent. This will also apply to international schools in the UK who provide education and vocational services for a charge.
This will secure additional funding to help deliver the Government’s commitments relating to education and young people, including opening 3,000 new nurseries, rolling out breakfast clubs to all primary schools, and recruiting 6,500 new teachers.
A technical note setting out the details of this policy has been published online here:
Draft VAT legislation has also been published alongside this technical note forming a technical consultation. The Government is engaging with a wide range of stakeholders as part of this consultation, to assess the impacts of these reforms.
Asked by: Baroness Buscombe (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the financial implications of the proposal to impose VAT on independent school fees on the parents of children supported by the Continuity of Education Allowance.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Government is committed to breaking down barriers to opportunity, ensuring every child has access to high-quality education, which is why we have made the tough decision to end tax breaks for private schools. This will raise revenue for essential public services, including investing in the education system.
Recognising the enormous sacrifices our military families make, the Ministry of Defence provide the Continuity of Education Allowance (CEA) to eligible Service Personnel. The government will monitor closely the impact of these policy changes on affected military families and the upcoming Spending Review is the right time to consider any changes to this scheme.
Asked by: Baroness Neville-Rolfe (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government which Ministers (1) requested, and (2) approved, the appointment of Ian Corfield as a civil servant in July 2024; and which Minister and/or senior official authorised the Recruitment Principles exception application to the Civil Service Commission.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
Ian Corfield was appointed on a short-term basis to carry out urgent work in support of the government’s International Investment Summit in October. A full recruitment process could not have been completed in the time available. He has since been appointed, unpaid, as a direct ministerial appointment.
The Treasury does not comment on the individual contractual arrangements.
Asked by: Baroness Neville-Rolfe (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government whether they will confirm if Ian Corfield received any payments in relation to his initial appointment as a civil servant in July 2024, prior to his subsequent conversion to a direct Ministerial appointment.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
Ian Corfield was appointed on a short-term basis to carry out urgent work in support of the government’s International Investment Summit in October. A full recruitment process could not have been completed in the time available. He has since been appointed, unpaid, as a direct ministerial appointment.
The Treasury does not comment on the individual contractual arrangements.
Asked by: Lord Shinkwin (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the expected impact on (1) the mental health, and (2) the educational attainment, of children with autism and neurodiverse conditions required to move schools following the planned introduction of VAT on private school fees in January 2025; and what stakeholder groups have been involved in developing the assessment.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
On 29 July, the Government announced that, as of 1 January 2025, all education services and vocational training provided by a private school in the UK for a charge will be subject to VAT at the standard rate of 20 per cent.
This was a tough but necessary decision that will secure additional funding to help deliver the Government’s commitments relating to education and young people, including opening 3,000 new nurseries, rolling out breakfast clubs to all primary schools, and recruiting 6,500 new teachers.
The Government has carefully considered the impact that this policy will have on pupils and their families across both the state and private sector. Following scrutiny of the Government's costings by the independent Office for Budget Responsibility (OBR), details of the Government’s assessment of the expected impacts of these policy changes will be published at the Budget on 30 October in the usual way.
The Government is committed to improving SEND provision in mainstream state schools, as well as ensuring state special schools cater to those with the most complex needs.
Asked by: Lord Black of Brentwood (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the compatibility of the proposal to impose VAT on independent school fees with the UK's obligations under Article 26(3) of the Universal Declaration of Human Rights; and what advice they have received on this issue.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
On 29 July, the Government announced that, as of 1 January 2025, all education services and vocational training provided by a private school in the UK for a charge will be subject to VAT at the standard rate of 20 per cent. This will also apply to boarding services provided by private schools.
The Government has considered the policy’s interaction with Human Rights law, and is confident that it is compatible with the UK’s obligations under the Human Rights Act.
Asked by: Jerome Mayhew (Conservative - Broadland and Fakenham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of trends in the level of the rate of the business rates multiplier in (a) England and (b) Wales.
Answered by James Murray - Exchequer Secretary (HM Treasury)
Recent trends in the rate of the business rates multiplier can be found at:
https://www.gov.uk/calculate-your-business-rates.
A number of reliefs are available to support businesses with their business rate liabilities. The eligibility criteria for them can be found on GOV.Uk. This includes the Small Business Rate Relief (SBRR) which provides 100% rate relief for eligible properties with rateable values below £12,000 with tapered relief available for eligible properties with rateable values between £12,000 and £15,000. SBRR means that over a third of the smallest non-domestic properties in England pay no business rates.
I am unable to comment on the Welsh business rates system, as business rates is a devolved policy area which means this is a matter for the Welsh government.