Finance Bill Debate

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Department: HM Treasury
Munira Wilson Portrait Munira Wilson
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The hon. Gentleman says that I am describing a failed system, and I am; I set that out. The SEND system is failing many children across this country, but I say to him gently—I made this point to the Minister in a similar debate a few weeks ago—that I do not think the level of investment that this measure will make in our state SEND system will fix that system. That will take many years and many billions of pounds, which I suspect that the Chancellor of the Exchequer does not have, and I do not think the answer to that is to penalise those who have scrimped and saved to be able to offer their children opportunity.

If I may, I will give the hon. Gentleman an example of another constituent who emailed me. She remortgaged her home, cashed in her pension plan and is struggling to be able to send her children to a local independent school after the local state school could not meet her children’s special needs. She said something that I think partly echoes what he is saying:

“Is this fair when other children with the same difficulties as mine are not able to access the same level of help? No. Definitely not. Believe me, I would never have chosen this route but I have been left with no choice. Is it fair to punish us further financially for the failings of the state education system? No!”

So I think the hon. Gentleman and I are in agreement, but I do not think the state SEND system is going to be fixed quickly or adequately enough, and I do not think the answer to that is to level down everybody’s opportunities. We need to level up opportunities for all and not penalise the parents who have made the often very difficult choice to ensure that their child has the opportunity that they wish to give them.

Christine Jardine Portrait Christine Jardine (Edinburgh West) (LD)
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Further to the point made by the hon. Member for Edinburgh South West (Dr Arthur), one of the complicating factors in Scotland is that we have no way of knowing for sure whether the money raised from VAT on schools throughout the United Kingdom will go back into our state education system in Scotland, which is struggling just as badly as the system in England, if not more so. On the point about parents of children with SEND, is there not a danger that, rather than paying the extra fees, because they cannot pay them they will take their children out of independent schools and put them into the state sector, whose already overstretched resources will then be stretched even further, and everybody will suffer?

Munira Wilson Portrait Munira Wilson
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I thank my hon. Friend for her important intervention. I am interested in how this money will flow back into the Scottish system, if at all. The point, raised not just by me but by a number of hon. Members in the various debates we have had on this issue, is that this will actually put a much greater strain on the state system, and particularly the SEND system. That is my real concern here.

Faced with the coming price hike, many of the families I have described will be forced to choose between returning to the overstretched state sector, as my hon. Friend has just said, where their child’s needs may not be met, and trying to home-educate their child. This choice has wide-ranging implications not only for those individual families but for our economy and our society. My new clause 9 would force the Government to see through the implications of this damaging measure.

I repeat that my party and I are opposed on principle to the imposition of VAT on school fees, but if the Government insist on pursuing this damaging and counterproductive measure, they should do so with their eyes open. They should be clear about the damage this measure will do, they should be clear about how it will affect parents, and they should be particularly clear about how it will affect children with special educational needs and disabilities. New clause 9 aims to ensure that by laying bare the impact of this measure on those families and children, who are already struggling with a broken SEND system. It would also require consideration of the additional children who will be coming forward to apply for an EHCP, so that their parents may be spared the fee hike the Government are imposing on them for trying, as any parent would, to do the very best for their child.

I received an email from one parent who, when his child was in an excellent local state secondary school, was discouraged from applying for an EHCP because of the challenges involved. He made the decision to send his child quite far away to an independent school where his child is doing well. This gentleman emailed me to say: “Well, I am now thinking that we might try to get an EHCP because, over a seven-year period, it will save us an awful lot of money if our son is eligible for one.” We know the EHCP system is overloaded and in crisis, so how much more pressure is going to be put on that system? New clause 9 seeks to measure that.

I urge colleagues on both sides of the Committee to support the new clause, and I urge the Minister once again to rethink this ill thought through policy.

--- Later in debate ---
Jeevun Sandher Portrait Dr Jeevun Sandher (Loughborough) (Lab)
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Thank you very much, Madam Chair. I thank the entire House for its well wishes.

I rise to speak of how our reforms will raise tax revenues from the wealthiest and use that money to build prosperity for all, because that is at the heart of our governing spirit.

Building prosperity for all means creating prosperity for those who cannot afford a decent life, no matter how hard they work, including non-graduates who cannot earn enough to live and the young who cannot earn enough to afford the homes they need. Today, we are proudly raising money from those who can best afford it to create good jobs and build homes across our nation, to create an affordable life for everyone.

Christine Jardine Portrait Christine Jardine
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I take exception to this idea of “the people who can best afford it.” A lot of parents who send their children to independent schools cannot really afford it—they scrimp and save. I do not think it is fair to characterise them that way. If they are forced to remove their children from those schools, it will not be the schools that suffer, it will be their children, and an extra burden will be put on the state system. This is hardly raising money to help other people.

Jeevun Sandher Portrait Dr Sandher
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In my constituency, private school fees are £15,000 per child per year. As a point of fact, almost no one in the bottom 80% sends their children to private school. Overall, it is 6%, while more than half of the top 1% send their children there. While I appreciate the hon. Lady’s point, it is not where the numbers are.

The tax changes we are debating today go to the heart of our governing philosophy that those with the broadest shoulders who benefit the most can carry the heaviest load. We all benefit from roads to drive on, a healthy workforce and hospitals when we need them. Those who gain the most benefit the most, and they are the ones we will ask the most from.