Question to the HM Treasury:

To ask His Majesty's Government whether they have conducted an impact assessment of their policy to charge VAT on independent school fees, and if so, whether they will place a copy in the Library of the House.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

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. The Government will set out its assessment of relevant expected impacts, including any expected pupil migration, in a Tax Information and Impact Note (TIIN).

Question to the HM Treasury:

To ask His Majesty's Government what is their estimate of the number of pupils who would have to leave the independent schools sector following the imposition of VAT on school fees for expenditure on additional state school places to exceed the additional tax revenue generated.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

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. The Government will set out its assessment of relevant expected impacts, including any expected pupil migration, in a Tax Information and Impact Note (TIIN).

Question to the Department for Education:

To ask His Majesty's Government what assessment they have made of (1) the resilience of specialist schools in the face of a reduction in pupil numbers, and (2) the ability of the state sector to deliver a comparable specialist educational service.

Answered by Baroness Smith of Malvern - Minister of State (Education)

While the government recognises that the VAT and business rates tax policy changes may lead to increased costs for some parents and carers and that some pupils may subsequently move into the state education sector, the number of pupils who may switch schools as a result of these changes represent a very small proportion of overall pupil numbers in the state sector. The majority of pupils who have special educational needs and disabilities (SEND) are educated in mainstream schools, whether state-maintained or private, where their needs are met. Where pupils’ needs can only be met in private school, and their place in private schools are being funded by local authorities, local authorities will be able to reclaim any VAT that they are charged. In England, 97% of pupils with an education, health and care (EHC) plan, where attendance at that private school is required by their EHC plan, have their place funded by their local authority.

The government is confident that the state sector will be able to accommodate any additional pupils and that there will not be a significant impact on private schools, including private special schools.

There is a small minority of cases where children with an EHC plan attend private school and it is funded by their parents, rather than by the local authority. This could be because their parents have chosen to send their child to private school, but their SEND could be met in the state sector. In these cases, VAT will apply to fees.

The department is committed to improving inclusivity and expertise in mainstream schools, as well as ensuring special schools cater to those with the most complex needs.

Question to the Department for Education:

To ask His Majesty's Government what assessment they have made of the impact of VAT on independent school fees on smaller schools within the private sector and their ability to continue to operate in the face of a reduction in pupil numbers.

Answered by Baroness Smith of Malvern - Minister of State (Education)

This government is committed to ending the VAT exemption that private schools enjoy. While the impact of this policy is being fully considered, projections by the Institute for Fiscal Studies indicate that the number of pupils who may switch schools as a result of these changes is likely to represent a very small proportion of overall pupil numbers in the state sector, with any displacement expected to take place over several years. This research can be found here: https://ifs.org.uk/publications/tax-private-school-fees-and-state-school-spending.

The department cannot be certain of the precise level, if any, of transfer from independent to state sectors additional to the movements between schools, and between the private and state sectors, which happen each year in all parts of the country. The department will be monitoring demand and capacity using its normal processes and will work with local authorities to meet any pressures.

The government will confirm the introduction of these tax policy changes at the Budget on 30 October. Following scrutiny of the government’s costing by the independent Office for Budget Responsibility, details of the government’s assessment of the expected impacts of these policy changes will be published at the Budget in the usual way.

Question to the Department for Education:

To ask His Majesty's Government how many additional state school places they estimate will be required by 2026 to accommodate those children anticipated to leave the independent education sector.

Answered by Baroness Smith of Malvern - Minister of State (Education)

This government is committed to ending the VAT exemption that private schools enjoy. While the impact of this policy is being fully considered, projections by the Institute for Fiscal Studies indicate that the number of pupils who may switch schools as a result of these changes is likely to represent a very small proportion of overall pupil numbers in the state sector, with any displacement expected to take place over several years. This research can be found here: https://ifs.org.uk/publications/tax-private-school-fees-and-state-school-spending.

The department cannot be certain of the precise level, if any, of transfer from independent to state sectors additional to the movements between schools, and between the private and state sectors, which happen each year in all parts of the country. The department will be monitoring demand and capacity using its normal processes and will work with local authorities to meet any pressures.

The government will confirm the introduction of these tax policy changes at the Budget on 30 October. Following scrutiny of the government’s costing by the independent Office for Budget Responsibility, details of the government’s assessment of the expected impacts of these policy changes will be published at the Budget in the usual way.

Found: the meeting Members present: Baroness Taylor of Bolton (The Chair); Lord Agnew of Oulton; Lord Altrincham

No description available