Asked by: Baroness Fraser of Craigmaddie (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government, further to the Written Answer by Lord Livermore on 21 October (HL1211) and the publication of the policy paper on applying VAT to private school fees on 30 October, what evidence they used to conclude that the impact of applying VAT to independent school fees will be smaller in Scotland than in England; and whether this will be case for all local authority areas in Scotland.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The government has conducted thorough and detailed analysis of the impacts of this policy. A Tax Impact and Information Note (TIIN) has been published which sets out this comprehensive analysis. This can be found here: Applying VAT to private school fees - GOV.UK (www.gov.uk).
The government has also published a detailed response to the consultation conducted between July and September. This can be found here: Government Response to the Technical Note on Applying VAT to Private School Fees and Removing the Business Rates Charitable Rate Relief (publishing.service.gov.uk). Annexed to the consultation response is a detailed explanation of the costing methodology used, including the estimation of pupil movements resulting from the policy.
Alongside the technical consultation, government ministers and officials met with a wide range of stakeholders representing schools, local authorities and Devolved Governments.
The impacts of this policy may vary between different parts of the UK as a result of different local circumstances. Some areas of the UK have a higher concentration of private schools and a higher proportion of local pupils attending private schools; there are also variations in local state sector capacity.
Impacts in Scotland, Wales, and Northern Ireland will generally be smaller than in England because those nations have a lower proportion of pupils in private schools, but again there will be regional variation. National differences in education policy will also shape impacts.
Asked by: Baroness Fraser of Craigmaddie (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government whether providers offering Level 6 qualifications funded through the Dance and Drama Awards scheme will attract VAT.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
Higher level qualifications, including Level 6, will remain exempt from VAT.
Asked by: Baroness Fraser of Craigmaddie (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what discussions they have held with the Scottish Government, and with any other education providers in Scotland, regarding the impact on the state education sector of charging VAT on independent school fees from 1 January 2025.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Government has engaged extensively with all the devolved Governments, including the Scottish Government, on this issue.
Whilst developing these policies, the Government has carefully considered the impact that they will have on pupils and their families across both the state and private sector, as well as the impact they will have on state and private schools. This consideration includes the impacts of these changes across all four nations of the UK.
Following scrutiny of the Government’s costing by the independent Office for Budget Responsibility, the Government will confirm its approach to these reforms at the Budget on 30 October, and set out its assessment of the expected impacts of these policy changes in the normal way.
Asked by: Baroness Fraser of Craigmaddie (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government whether they plan to levy VAT on fees for (1) students training at the 20 Centres for Advanced Training supported by the Music and Dance Scheme, and (2) children attending independent schools that are members of the Choir School Association.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
Where parents or families are paying fees for their child to attend a private school, they will pay VAT on those fees following this change.
Whilst developing these policies, the government has carefully considered the impact that they will have on pupils and their families across both the state and private sector, as well as the impact they will have on state and private schools. Following scrutiny 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.
Asked by: Baroness Fraser of Craigmaddie (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the impact of levying VAT on independent school fees on the schools listed in the Music and Dance Scheme in England and the schools supported by the Scottish Government's Aided Places Scheme.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
Where parents or families are paying fees for their child to attend a private school, they will pay VAT on those fees following this change.
Whilst developing these policies, the government has carefully considered the impact that they will have on pupils and their families across both the state and private sector, as well as the impact they will have on state and private schools. Following scrutiny 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.
Asked by: Baroness Fraser of Craigmaddie (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the impact of levying VAT on independent school fees on children in receipt of a bursary from the Government’s Choir School Scholarship Scheme.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
Where parents or families are paying fees for their child to attend a private school, they will pay VAT on those fees following this change.
Whilst developing these policies, the government has carefully considered the impact that they will have on pupils and their families across both the state and private sector, as well as the impact they will have on state and private schools. Following scrutiny 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.