Independent School Fees: VAT
Lord McFall of Alcluith Excerpts(1 month ago)
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Lord Lexden
To ask His Majesty’s Government what assessment they have made of the results of imposing value added tax on independent school fees on 1 January.
The Lord Speaker (Lord McFall of Alcluith)
My Lords, before I call the noble Lord, Lord Lexden, for the third Oral Question, I should remind noble Lords that there are active legal proceedings relating to the policy of applying VAT to private schools. Part of my role is to decide whether, in specific circumstances, it is appropriate to waive the application of the sub judice rule, under which we do not debate matters before the courts. In view of the national importance of this issue, I have decided to grant a waiver of the rule to allow reference to this matter on an ongoing basis. It is relevant to my decision that a similar waiver has been issued in the House of Commons.
Lord Lexden (Con)
My Lords, I beg leave to ask the Question standing in my name on the Order Paper and declare my interest as president of the Independent Schools Association, whose 700 members—mainly small schools—are now at serious risk of damage or closure.
Independent School Fees: VAT
Lord McFall of Alcluith Excerpts(5 months, 3 weeks ago)
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Lord Livermore (Lab)
The core answer to the noble Lord’s question is that very many private schools will take steps to absorb a proportion, if not all, of the new VAT liability, so there may actually be no increase in fees in such circumstances, which is why it is right that we leave it until the spending review. It is worth pointing out that very many military personnel send their children to state schools and want them to benefit from the improvements that will happen in those schools.
The Lord Speaker (Lord McFall of Alcluith)
My Lords, the noble Lord, Lord Campbell-Savours, is participating remotely.
Lord Campbell-Savours (Lab) [V]
Why not positively foster pupil migration from the public schools into the state boarding school sector, such as Keswick School, a comprehensive in the Lake District? They offer a far wider social mix, often higher standards of education, help to foster far more balanced social interaction among the young, and all at a fraction—often one-third —of the cost. Is this discussion about not just tax receipts but breaking down social division that can begin in childhood and later divide society?