Independent Schools: VAT and Business Rates Exemptions Debate

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Department: HM Treasury

Independent Schools: VAT and Business Rates Exemptions

Alison Griffiths Excerpts
Tuesday 8th October 2024

(2 months, 1 week ago)

Westminster Hall
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Alison Griffiths Portrait Alison Griffiths (Bognor Regis and Littlehampton) (Con)
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The Institute for Fiscal Studies predicts that even a modest migration of 3% to 7% of private school students to the state sector will cost the Government hundreds of millions of pounds a year, wiping out much of the projected revenue from VAT. Far from improving the education system, the policy will add stress to state schools already grappling with limited resources and overcrowded classrooms. It is a tax on aspiration, which disproportionately impacts hard-working families already making sacrifices. Perhaps most importantly, this policy will damage the significant contribution that independent schools make to special educational needs and disabilities provision.

A constituent of mine is worried about this exact issue. She got in touch to say:

“My son has been diagnosed with ADHD and high-functioning ASD…he has already been let down by the state education system. His first school reported us to social services, rather than offering the support he needed. His second school refused to help us secure an EHCP, and instead suggested we monitor his intake of E-numbers.

Given these challenges, we made the difficult decision to enrol him in private education.

We are not part of the elite; we work very hard and have had to borrow a significant amount of money to cover his tuition fees for next year.”

The proposed removal of business rates relief will exacerbate the financial challenges faced by independent schools, and the loss of those schools will devastate local communities, limit educational choice and further diminish the capacity for SEND education. The Labour Government’s lack of impact assessment and weak fiscal evaluation will ultimately be detrimental to many families in my constituency.