Tourism Levy

Baroness Goldie Excerpts

Monday 14th July 2025 Lords Chamber

[Lord Livermore (Lab)]

I am grateful to the noble Earl for his question but, at the risk of repeating myself, we have been engaging with stakeholders to understand their proposals, and we will continue to do so, but we have no present plans to introduce visitor levy powers in England. The noble Earl will be aware that councils and local businesses can choose to raise revenue by setting up business improvement districts; for example, Bournemouth has a coastal business improvement district with the objective of attracting visitors, improving and developing the visitor experience, and building prosperity. That levy will raise over £2 million over five years.

[Baroness Goldie (Con)]

My Lords, I understand that Edinburgh has become the first city within the United Kingdom to impose a city-wide visitor levy, which will come into effect next year. But it appears that HMRC now proposes to impose VAT upon the levy; it seems intrinsically unfair that a tax is imposed upon a tax. The matter appears currently to be shrouded in doubt—can the Minister clarify the position?

[Lord Livermore (Lab)]

I do not know the position on that. I will happily check and write to the noble Baroness.

Independent School Fees: VAT

Baroness Goldie Excerpts

Thursday 13th March 2025 Lords Chamber

[Lord Livermore (Lab)]

I am grateful to the noble Earl for his question. I agree with the second part of it that we should encourage people into those schools. In terms of what the Government can do, the Department for Education has already acted and adjusted its scheme, and it will continue to maintain that for the rest of the academic year.

[Baroness Goldie (Con)]

Many of our Armed Forces educate their children privately because that is the only way they can ensure continuous provision of education because of the extraordinary lives we ask them to lead and the sacrifices they make for the safety of our nation. While the MoD pays a continuity of education allowance, that covers only a proportion of the parental cost. The imposition of VAT on private school fees has added to the expense of the balance which Armed Forces personnel are paying, magnified if they have more than one child being educated. Is this really the best we can do for our Armed Forces personnel?

[Lord Livermore (Lab)]

I agree with much of the sentiment that the noble Baroness expresses. The Government greatly value the contribution of our diplomatic staff and our serving military personnel. The continuity of education allowance provides clearly defined financial support to ensure that the need for frequent mobility, which often involves an overseas posting, does not interfere with the education of their children. As the noble Baroness will know, the Ministry of Defence and the Foreign Office have both increased the funding allocated to that allowance to account for the impact of any private school fee increases on the proportion of fees covered. The noble Baroness raises the proportion of the fees paid by the parents. As she will know, on average, the Government expect private school fees to increase by around 10% as a result of this measure, but many schools, as we have seen so far, have fully or partially absorbed VAT costs. How individual schools fund this additional cost is a commercial decision for them.