Independent Schools: VAT and Business Rates Relief

Christine Jardine Excerpts

Monday 3rd March 2025 Westminster Hall

[John Lamont]

The hon. Gentleman represents a part of Scotland where the proportion of young people going to independent schools is among the highest, if not the highest, in the country. I have had conversations with constituents and the teaching staff at a number of schools in his constituency, so I know how concerned they are. A number of parents are now considering taking their children out of the sector because they can no longer afford to pay the fees.

The hon. Gentleman knows from his discussions with those parents that they are not necessarily wealthy. During the last election, I spoke to parents who had made really tough choices about how they lead their lives to ensure that they can pay school fees—very often in schools in his constituency. They have made that choice about how they want their children to be brought up, and I think it is wrong that the Government are potentially taking that choice away or making it much more difficult for families to send children to the very good schools that he supposedly represents.

[Christine Jardine (Edinburgh West) (LD)]

I represent a different part of Edinburgh, where one in four or five pupils goes to independent school. I have already received representations from parents who have had to take their children out of their schools and are concerned about where they can be placed in the city, given that the Labour council has already said that at least 15, and possibly 16, schools will be at capacity by the end of the decade even if there are no extra pupils.

[John Lamont]

The hon. Lady makes an excellent point. Many young people, particularly in the city that she represents, go to schools in the independent sector, so the effect of this policy will be disproportionately higher in her city and the constituency of the hon. Member for Edinburgh South West (Dr Arthur), than in other parts of Scotland and the United Kingdom. It is disappointing how dismissive Labour Members are of the concerns raised by the schools that the hon. Gentleman supposedly represents.

My fourth point, which really undermines Labour’s stated reasons for going ahead with this policy, is that there are huge potential costs to state schools arising from pupils moving out of independent schools. Every pupil who moves from an independent school to a state school will incur more cost to taxpayers. Those students did not cost the Government any money, but now their entire education will be met at a cost to the taxpayer.

The Government think that they have been clever by raising a tax to support public services, but they have not come to the obvious realisation that they are also raising the cost of providing public services. Just look at the number of students: there are 30,000 pupils in independent schools in Scotland alone. Survey data from the Independent Schools Council shows that, across the UK, 8,500 children have already left independent schools or did not start last September, and another 3,000 are expected to have left in January. The Independent Schools Council has stated that that is nearly four times the Government’s estimate for this year alone. The kicker is that the real test will come in September 2025, once this policy really hits parents hard. All those pupils will now have their education delivered by the state, and taxpayers will have to pay for it.

Now that I have outlined the great damage that the policy could do, let me turn to what the Labour Government have said in response and rebut some of their ridiculous claims. The Government stated in response to the petition that the policy

“will raise £1.8bn a year, helping to deliver the Government’s commitments for children in state schools.”

Except that may not be the case. It may not raise anywhere near that amount, because that is an estimate, not a hard fact. That claim also does not fully take into account the cost to the public finances of so many young people joining the state school system all at once. It is a big claim, and it does not really stack up.

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[Alison Taylor]

I think my point refers to the timing point that the hon. Gentleman has been making. I will carry on.

In Scotland, it is up to the national Scottish Government to decide how to use the significant additional funds that they receive through the block grant. As expenditure on education in England increases, so do the resources available to the Scottish Government, but despite Scottish families being taxed more than families in any other part of the UK and despite Scotland receiving the largest increase in the block grant since the Scottish Parliament was formed, there is little to show for those things in state schools in Scotland. In spite of the incredible hard work of teachers and support staff in schools in Scotland, the attainment gap continues to increase, and standards and results continue to fall.

[Christine Jardine]

I agree with the hon. Lady that the state of the education system in Scotland is appalling, and the blame lies squarely with the SNP, but how does she think the state sector will be helped to recover by putting extra pressure on it through forcing parents to move their children to places that do not exist?

[Alison Taylor]

As is well documented, this policy will raise £1.8 billion for the state sector. I will carry on.

This Government have made the hard decisions, including introducing VAT on private school fees, that are necessary to improve education for all children. That is already starting to make a difference in England. I sincerely hope that the Scottish Government will take a short break from stirring up grievance within the UK and instead will focus their attention on meeting the real needs of families in Scotland.

In the past, I and other members of my family have spent all or part of our education in the independent sector, but currently I have no family members in the independent sector. Given how much time has passed, I honestly do not know whether the increase in fees would have resulted in my family making different choices. My comments today are informed by what I have been told by parents in my constituency who have been impacted.

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[Christine Jardine (Edinburgh West) (LD)]

It is a pleasure to serve with you in the Chair, Mr Vickers, and to follow the hon. Member for Ealing Central and Acton (Dr Huq). I feel as if the speakers so far have been talking about me, because they have been talking about parents who are not rich but who send their children to independent schools. I no longer have a declarable interest, but my daughter did go to an independent school. We were not wealthy, and it was not easy, but it was our choice. We never regretted it, but we often struggled to finance it. I know that there are thousands of parents, many in my constituency, who face an even bigger challenge because of this change.

My daughter went to an independent school in the west of Scotland. It was originally the town school—anyone from Glasgow knows which one I mean—and it had a tradition of awarding a large number of bursaries every year. A lot of the children who were at her school and are now doing well would not have got that place otherwise. A lot of them faced challenges, and the school helped them. We need to remember that we are talking not about the Etons and the Harrows—the big schools—but about a lot of independent schools that often provide a service in communities. It is a choice made by parents who are not always rich.

My city of Edinburgh is one of the areas of the country with the highest proportion of children educated in independent school—it is one in four. That is reflected in the figures in the petition. There were 740 signatures from my constituency, which is a higher number than for any other petition that I remember from my almost eight years in this place. That fact is also reflected in my mailbox and in the concern that parents in Edinburgh regularly express to me. They do not always have their children in the independent sector; a lot of them have their children in the state sector. Every week, parents come to me who cannot get a place for their child in the local state school because it is close to capacity. That problem will only be made worse if many of those one in four children are forced, by this Government, into the state sector because their parents can no longer afford the choice that they made.

[Dr Huq]

The hon. Lady and I were both girls in those schools, and she talked about her daughter. Does she accept that it is often the parents who want their daughters to have an all-girls education. There are figures from the Girls’ Schools Association. There is also the head of Dame Allan’s girls’ school, who said that girls thrive better in all subjects in all-girls environments and that they choose things such as physics and maths more when there are not boys around mucking about.

[Christine Jardine]

I accept that point and absolutely agree. It reminds me of the point that for a lot of parents, their children are in independent schools because they were struggling in the state sector. They moved their children into the independent sector, where they are thriving. Rightly or wrongly, that was the parents’ choice, and we—or, at least, the Labour Government—would be taking that choice away from them, because of the fee increase. I also find it difficult to understand a Labour Government who would support the principle of taxing education. As well as the practical issues with the policy, they are taxing education, which is surely not something that they would support.

Introducing the change halfway through the school year has caused issues for many parents, who have suddenly found that all the budgeting they have done is out the window. They may have more than one child at a school that they can no longer afford due to the increase in school fees. That is why so many people are writing to me every weekend to say that they are having to think about what they will do about their child’s education and where they will find a place.

[Dr Arthur]

I find it really interesting that Conservative and Liberal Democrat Members are talking about how wrong it is to place VAT on school fees, even though they thought nothing about introducing university fees, which place a huge cost on education, particularly for people from poorer backgrounds.

[Dr Arthur]

The massive rise in tuition fees came later. Hon. Members know exactly what I am talking about. [Interruption.] Can I speak, please? Nobody here is questioning the motives of parents—every single parent who sends their children to an independent school wants the best for their children—but what we are questioning is, if we were to scrap this policy, what would we cut instead? I am just not hearing an answer. This policy will generate additional income for the constituency of the hon. Member for Edinburgh West (Christine Jardine). Where does she want that to be cut from instead? What does she say to the majority of people in Edinburgh who voted for parties that supported this policy?

[Christine Jardine]

Like the hon. Member for Berwickshire, Roxburgh and Selkirk (John Lamont), I would like to see the evidence that half of the people in Edinburgh voted for this policy. I have to tell the hon. Member for Edinburgh South West (Dr Arthur) that there are 311 signatories to this petition from his constituency. More than half of the people in Edinburgh West voted for me, so I would like to see where he is getting the figure that parents in the city have voted for the measure.

Where does the hon. Gentleman think that the City of Edinburgh council will find the places, when its own figures, produced by a Labour Administration before this policy was announced, showed that 16 schools in the city will be at capacity by 2030? The problem is that where there are places, they are not necessarily convenient for the children who will be forced, by this policy, to look for a new school place. State school rolls are already stretched in Scotland because of the SNP’s cuts to local government, and this change can only make that situation worse.

[Dr Arthur]

My goodness me. If this policy generates the £1.8 billion we heard about earlier—[Interruption.] It could generate more. If it generates £1.8 billion, it will benefit schools in Edinburgh—of course it will. The hon. Lady made reference to school roll analysis, and stressed that it was conducted before the policy was introduced. Since then, there has been an update, and it shows more than adequate capacity in Edinburgh, particularly as we have only 55 students moving from the private sector to the state sector. She is well aware of that analysis.

[Christine Jardine]

Yes, I am aware of that analysis, and it does not show a healthier figure. The point that I was making in saying that it was conducted before the policy’s introduction is that the instant this Government came out with the policy, the Labour council went back and redid the figures. [Interruption.] No, I did not say that, but what I will say is that state schools across the country are stretched. If the hon. Gentleman is insisting that this £1.8 billion will go to Scotland, perhaps his Ministers will tell us how it will get to schools in Scotland, because they have no power to put that money into state education in Scotland.

This is a national policy. It is affecting families up and down this country, and it is putting more pressure on the state education system everywhere from Caithness to Cornwall. It is not just about Edinburgh; it is about the entire country. I am here to speak on behalf of my constituents, but I feel that their fears are reflected elsewhere in the country. If this Labour Government can tell us how they are going to make that money effective in protecting state education, and how they will get it into schools like ones in my constituency, then we might listen. The problem is that all they say is, “Find a different way of making the cuts.” Well, we did put forward different ways of raising money. They could have raised money by reforming capital gains tax. They could raise money for schools by putting a tax on social media platforms, which we suggested. The alternatives are there, and they would not be a tax on education—an ill-thought-through, ideologically driven policy that does not take account of the unintended consequences.