Independent Schools: VAT and Business Rates Relief
Debate between Alison Taylor and John Lamont(1 week, 4 days ago)
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John Lamont
The hon. Member is absolutely right, and that leads me neatly to my next point. Let us look at what else the Labour Government have claimed. They said:
“Ending tax breaks for private schools was a tough but necessary decision that will secure additional funding to help deliver the Government’s commitments relating to education and young people.”
That supposed extra funding is far from guaranteed. The policy is unlikely to raise what has been stated, and it may well incur far greater costs to taxpayers than anticipated.
Let me state it plainly: nothing about this decision was necessary. This did not need to happen now or in this manner. At the very least, it could have been considered in detail, with all the repercussions weighed up. The Government estimate that in the long term, 37,000 pupils will leave or never enter the UK private school sector as a result of the VAT charge. That number may also prove to be nonsense; if it is, the Government’s entire basis for doing this will fall apart. If the number is higher, the cost to the public finances will be higher and less revenue will be raised. That is a potentially vicious double whammy for the Treasury, inflicted entirely by Labour’s own design.
Alison Taylor (Paisley and Renfrewshire North) (Lab)
Does the hon. Gentleman agree that the policy was well documented in the 2017, 2019 and 2024 Labour manifestos? People voting in the 2024 election were well aware of Labour’s policy.
John Lamont
If the hon. Lady engages with the parents and schools affected, as I am sure she has, she will know that one of their criticisms is the haste with which the policy was introduced, and the inability of schools and parents to make plans to adjust to this severe tax. I cannot think of another example of a Government trying to increase a tax by 20% in one go. One of the main reasons schools and parents are so concerned is the failure to engage, discuss and properly understand the impact, as well as the suggestion that only wealthy parents will be affected. The hon. Lady will know from her constituency that people are making tough choices about whether they send their young people to one of the local independent schools; they are making choices about how they lead their lives, and budgeting accordingly. It is very sad that the lives of young people will be disrupted as a consequence of the policy.
The Government also stated:
“Many of the resulting moves into state schools are expected to take place at natural transition points, such as when a child moves from primary to secondary school, or at the beginning of exam courses.”
That is pure assertion. It is made up. It is fantasy. The Government have no guarantees that that will be the case. There is no evidence to suggest that pupils will move only “at natural transition points”. Many parents will be unable to afford the extra bills and will have to move their children immediately, and not at a “natural” time. As I stated earlier, that could easily be at a critical moment in the child’s development.
The Government have said:
“These policies will not impact pupils with the most acute additional needs.”
That is plainly false. It is not even close to the truth. The Independent Schools Council, the Scottish Council of Independent Schools and individual headteachers all say the opposite. The Government’s policy will have an impact on vulnerable pupils with additional needs. It is simply shameful to claim otherwise, and does a huge disservice to the many parents out there doing their best for young people who just need a bit more help.
I conclude by thanking the petitioner again and all those who have signed this important petition. I look forward to hearing from other right hon. and hon. Members about their views of the petition. I believe that this reckless policy is being pursued for political and ideological reasons. It is not about what is best for the country; it is a move to placate the left wing of the Labour party. It will cost pupils, parents and taxpayers. It will leave both independent and state schools worse off. Labour promised change—well, here it is: change for the worse.