VAT: Independent Schools

Debate between Alicia Kearns and Richard Foord

Tuesday 8th October 2024 Commons Chamber

[Alicia Kearns]

I am so pleased that the hon. Gentleman is repeating the lines that the Whips gave him for this morning’s Westminster Hall debate. I was not talking about SEND. It is deeply discourteous to the House to intervene on a Member with a point that is completely separate from the point that they are making; he will come to learn that in time.

As I said, the entire county of Rutland has zero available state school places for years 10 and 11. That means children will now not be able to get their education. I ask the Minister directly: what would he say to 16-year-olds who are to be forced out of their school in January with no alternative place to go and nowhere to do their studies? This is a vindictive policy, and it is absolutely wrong.

I want to touch on the contribution to local rural economies. In Rutland, education is the biggest single employer. As I said, we have 10 schools across 11 sites. In 2022-23, one secondary school in Rutland and Stamford contributed £50 million to UK GDP. It contributed £30 million to local GDP, £14 million was paid in tax to HMRC, and savings of £5.5 million were made to local schools through school places that were not taken. Some 70% of this school’s expenditure is on staffing and, with the imposition of VAT, it is forecast to make a loss for the first time ever. Jobs are being lost. When 70% of the budget is staffing, what does a school do? Cuts have to be made in people’s jobs. More than 2,000 people locally are employed directly by independent schools, and that is not to mention those working in the supply chain, whether driving buses, providing food or flowers, or working in cafés and shops. Rural economies do not have many options at the moment, and independent schools are a bedrock for them. The economic impact of these jobs on rural communities should be considered in an impact assessment, but I very much doubt one has been carried out.

Looking at the national economic picture, the Adam Smith Institute concluded that every child in independent schooling contributes £28,000 to the public finances. The average £2,700 saved on VAT makes a return to the taxpayer of 1,040%. If 5% of independent school pupils leave, the Government will generate £1 billion through this policy. If 10% to 15% of pupils leave, the Government will generate no revenue. If 25% of pupils leave, the Government will lose £1.58 billion, because they are doing something vindictive and wrong.

[Richard Foord (Honiton and Sidmouth) (LD)]

Does the hon. Lady agree that people putting their children through independent school are paying twice? They pay once through their fees and once through income tax. If they are removed from the system, that will mean less money for education.

[Alicia Kearns]

The hon. Gentleman is absolutely right. These parents have already paid into the state school system as if their child were going to state school, and they are net contributors to the local education system and the tax system, because they have chosen to ease the pressures on state schools by taking their child out. This is basic economics, and that is why the Government do not understand it.

Independent schools make a huge and optional contribution to the national teachers’ pension scheme. Some could choose to mitigate their increased costs from the imposition of VAT by opting out of the TPS. What assessment has the Minister made of the impact that this would have on the financial viability of the TPS?

Additionally, a number of independent schools in my constituency provide homes for children in foster care who would otherwise have no stability. These are the kind of schemes they will have to stop. That will again result in increased costs and impact on the state sector, which will have to pick these things up.

It is a long-standing international norm to exempt education from sales taxes. Nurseries, universities, tutors and other education providers are not included in Labour’s proposed VAT increase, although as per my intervention on my right hon. Friend the Member for East Hampshire (Damian Hinds), there is a toddler tax, which any parent with a five-year-old child in nursery school will suddenly find themselves paying. It is ironic that the Labour party says that it believes in free university education for all, yet many who take up apprenticeships or go into work will not go to university. Why does Labour think that all of us who do not go to university should pay for other people to go to university, but somehow, when it comes to this issue, we should pay for others?

There is also a question about the legality. Senior lawyers, including Lord Pannick, have argued that this proposal will breach European convention on human rights rules on educational choice and access. What assessment have the Government made of the legality of this policy?

I am already seeing the damage of this policy in the heartbreaking dilemmas facing families who have contacted me for help. For some pupils halfway through their exam years, there are no places in the state system. The requests are clear: the Government must delay the implementation until at least the end of this school year, so that children are not disrupted in their education. We need to exempt those pupils in years 10 to 13, so they can take their exams without the added pressure of a school move. We need to help local authorities to boost EHCP assessments rapidly, and we need to undertake a regional assessment of available state school places to exempt pupils who live in areas with no availability, such as Rutland.

I understand that the Labour party wants to make an ideological attack on education and choice, but I urge Ministers to sit down and think this through. The richest will continue to attend private schools and absorb the increased costs, while families who sacrifice day after day will suffer. For those who are interested, I did go to my local comprehensive, and my children go to their local comprehensive, but I think it is right that we support choice for all. Tony Blair once said, “Education, education, education.” I urge the Minister to listen to the ghosts of Labour past and to do what is right for all children at both state and private schools, not what is right for reasons of ideological dogma, which is what the Labour party is currently doing day after day.

Security in the Western Balkans

Debate between Alicia Kearns and Richard Foord

Thursday 2nd May 2024 Commons Chamber

[Richard Foord (Tiverton and Honiton) (LD)]

It is a genuine honour to follow the right hon. Member for Beckenham (Bob Stewart). He is revered in this place for his knowledge of the western Balkans, not only because he reads a lot about the area and visits Bosnia a lot, but because of his rich experience from the 1990s, when it was at its most bloody.

I also pay tribute to the hon. Member for Rutland and Melton (Alicia Kearns). I say humbly, as the newest Member present in the Chamber today, that a Chair of the Foreign Affairs Committee ought not just to comment on some of the things going on in the world today, but anticipate what we might see in the future. We often come to the House to ask urgent questions about events, in the middle east or elsewhere, that are happening right now, but real statespeople look forward and think about what might happen in the future and how we can head that off.

I thank those Members who paid tribute to the late Lord Stunell. We were very shocked and saddened by his loss. It reminds us of another loss in the other place, that of Lord Ashdown. When I was trying to decide whether to speak in this debate or to go out and campaign in the local elections, I had to think, “What would Lord Ashdown be more appalled by? Would he be more appalled by my absence from campaigning or the debate?” Although it was a finely balanced decision, I think he would have wanted somebody on the Liberal Democrat Benches talking about the western Balkans.

I will concentrate my remarks on Kosovo, not just because of my personal experience—I spent a year there, all told—but because Kosovo has the most recently changed international border in the region. In 2008, many members of the international community, including the UK, recognised the state of Kosovo. One has to pay tribute where it is due, and it was good to see that Lord Cameron visited Pristina not long after he was appointed, at the beginning of January this year, when many others were sleeping off a hangover.

My first trip to Kosovo was working with KFOR on trying to encourage Serb returns to Kosovo. That reminds us that the efforts by the international community to build peace in Kosovo were grounded in trying to establish a safe and secure multi-ethnic environment. It is easy to forget just how much effort the international community put into trying to keep Kosovo a very diverse place. While I was working on Serb returns, I met a lady whose husband and children had been dreadfully butchered—hung from a tree and disembowelled. I later went back and worked with the Kosovo Protection Corps, an organisation that had grown out of the former Kosovo Liberation Army and subsequently became the Kosovo Security Force. For many, that was going to be the future Army of Kosovo. I have, therefore, had the privilege of seeing things from two extreme sides and I feel I am able to see things from two very different perspectives.

While there is still a strong sense of grievance in the Kosovo-Serb community, there is no doubt that Moscow is playing on that. Moscow would love to see Belgrade acting as some sort of satellite, or even a proxy. We have pretty good reason to believe that Moscow is delighted to see the middle east burning right now because it serves to distract from its illegal war in Ukraine. In much the same way, we suppose that Moscow would be very pleased if the Balkans were on fire too.

[Alicia Kearns]

I thank the hon. Gentleman for his kind words earlier in his speech. Is he aware that when the Foreign Secretary was giving evidence to the Foreign Affairs Committee he described Serbia as a proxy of the Russian state?

[Richard Foord]

I was not aware of that but it sounds feasible. We should try to bring Serbia away from the mantle of Moscow, if we can. I appreciate that is not entirely within our gift. One way to do that is through economic means, by trying to attract Belgrade and Serbia to our cause.

We must think, too, about the Kosovo Serbs. More than 10% of Kosovo Serbs have left Kosovo in the past year. Clearly, they are electing to leave, unlike what we saw in 1998-99 when people were being burned out of their homes. It was ethnic cleansing on a scale that, thankfully, we have not seen in southern Europe since. My fear is that, by legitimising the election that the Kosovo Serbs chose to boycott, we might inflame or enrage that sense of grievance that exists among those Kosovo Serbs.

Thinking about the intervention from the Chair of the Foreign Affairs Committee, I was intrigued to see that members of the International Relations and Defence Committee in the other place wrote a letter to Lord Cameron earlier this year, and among the list of suggestions that they made was one promoting a BBC Albanian service, which strikes me as an excellent idea as it would encourage the spread of our soft power in Kosovo.

When we hear remarks about Greater Serbia, we have to pay tribute to how the international community deliberately avoided creating a Greater Albania in the wake of the ethnic cleansing in Kosovo. It deliberately avoided any sense that the international community was seeking to annex territory. That stands in stark contrast to what Russia has sought to do in Ukraine. It may claim that there are precedents for redrawing international borders, but it cannot point to Kosovo as any sort of precedent, given that that involved the creation of an independent state, and that what we see in Ukraine at this time is nothing but aggression and imperial annexation.

I accept the premise that Russia is keen to interfere in the western Balkans, and is seeking to stoke tension between Serbia and Kosovo. My feeling is that we must try to avoid the Serbs becoming susceptible to the goading that is coming from Moscow.

The proposal from the Chair of the Foreign Affairs Committee for a trilateral security alliance is an interesting idea. What we saw in the wake of the invasion of Ukraine was Pristina appealing to its allies—appealing to the United States and to NATO to admit Kosovo into NATO. In the absence of that, I suppose that deterrence through a strong alliance with Kosovo makes a whole lot of sense, and, of course, we have seen similar proposals in relation to Warsaw and Kyiv.

Yes, deterrence is required, but my closing point is that we should not afford Moscow greater opportunities to appeal to the Serbs. There are some well-educated and well-informed Serbs who have grievances about what went on in the early 2000s. We must try to appeal to both the Kosovo Albanian community and to the Kosovo Serbs and try to create that much sought after multi-ethnic state.

Planning and Solar Farms

Debate between Alicia Kearns and Richard Foord

Wednesday 19th July 2023 Westminster Hall

[Richard Foord (Tiverton and Honiton) (LD)]

It is a pleasure to serve under your chairship, Ms Nokes. I pay tribute to the hon. Member for Sleaford and North Hykeham (Dr Johnson) for securing this important debate.

It is really good that the issue of solar farms and planning has been raised. It is obvious to us all that we have to shift away from fossil fuels and towards renewable energy; nobody would demur from that. As well as the environmental benefit of saving the planet, renewable energy also has the advantage of cutting people’s bills, and again nobody would argue against that.

The hon. Lady said that it can sometimes feel like all the solar panels in the country are in her Lincolnshire constituency, but I assure her that that is not correct: we have stacks of them in my part of Devon. The small parish of Hawkchurch, a village in my constituency that borders Dorset and Somerset, is already home to more than 100 acres of fsolar arms.

[Alicia Kearns (Rutland and Melton) (Con)]

Although I recognise that the hon. Gentleman is advocating passionately for his constituency, I must point out that more than 50% of land nationally with proposed solar plants is in Lincolnshire, Leicester and Rutland, so we are disproportionately at threat.

[Richard Foord]

I am grateful to the hon. Lady for that point. We have heard that nationally there are 600,000 acres of roof space on which solar panels can be put. That is an excellent point to make. Certainly, for some of my constituents, it can feel like the solar panels are concentrated in some small areas.

When approval is sought for renewable energy projects—not just solar but onshore wind—they can hit a roadblock and get stuck in limbo. That is why this process can drag on and become a real scourge on our communities, as the developers and the local people battle it out.

Anyone buying a new Ordnance Survey map today will see something they would not have found 20 years ago: many new solar farms. I am not a big fan of the term “solar farm”, because to me a farm is for producing food, not electricity. Solar and wind are two of the quickest and cheapest forms of sustainable energy. If we are to reach net zero, we need a joined-up plan for connecting our existing power grid to renewable sources of energy. Solar accounts for just 5% of total electricity output, compared with about 27% for wind.

Between them, the solar schemes awaiting construction would generate 15,000 MW per day, which is enough to power 1.9 million homes. An enormous number of solar schemes are in the planning stage but have not yet been approved, and some of them could affect people in my part of the world. One enormous solar farm between Talaton and Whimple, near my constituency, would power 12,000 homes.

As people increasingly transition from heating their homes with oil to heating them with electricity, we need to think about not only power generation but insulation. In 2012, the Government were insulating 2.3 million homes per year, whereas now they insulate fewer than 100,000 homes per year. Let us think about not only how we can generate more but how we can conserve electricity.

Two of the main challenges in respect of advancing plans for solar are, first, how we plug into the national grid and, secondly, how we address the concerns of local communities. I hear the point about how prized agricultural land can appear to be lost under solar panels. The effect on local communities relates not only to the site—people sometimes get a little bound up with what solar panels look like—but to the sustained level of heavy goods vehicle traffic, because a lot of traffic goes back and forth to maintain the panels. We have to properly address local communities’ concerns to ensure that we do not hold up all solar panels and all solar renewable energy in this country.