Fair Taxation of Schools and Education Standards Committee

Debate between Gillian Keegan and Ruth Edwards

Wednesday 11th January 2023 Commons Chamber

[The Secretary of State for Education (Gillian Keegan)]

My mission is to make sure that every child in this country gets a fantastic education and every opportunity to make the most of their abilities. My expectation of excellence is the same whatever the type of school and wherever it is in the country. A good education is not a battle of this school versus that school—at its most basic, it means giving every child the means to find their place in the world. My job is to make sure that schools do that, and independent schools have a valuable role in delivering that.

By the Opposition’s own account, applying VAT to independent schools might deliver £1.75 billion more per year for schools. The key word in that sentence is “might”. I gently suggest that “might” could be over-optimistic, or even economically illiterate. The Government recognise that a good education is the closest thing we have to a silver bullet when it comes to making people’s lives better, which is why we are putting an extra £2 billion into our schools next year and the year after. This will be the highest real-terms spending on schools in history, totalling £58.8 billion by 2024-25. [Interruption.] I hear a few mumblings of “2010” from the Opposition Benches, so let me put that into context. When we took office from Labour, the spending was £35 billion per year. For those following the maths, that is a 68% cash increase.

Under this Government, schools will not need tax changes to receive extra money; they will not have to wait. Without that policy, they will be getting it from April this year, and even more—£2 billion, as opposed to an optimistic £1.75 billion.

[Ruth Edwards (Rushcliffe) (Con)]

I thank the Secretary of State for giving way. It is a shame the shadow Secretary of State did not afford me the same courtesy—I thought a debate was an exchange of ideas. What the Labour party is actually proposing is to financially penalise parents for paying to educate their children. I would have thought that would affect the number of families who could afford to keep their children in the independent sector, and lead to an influx of children from the independent into the public sector. What assessment have the Government made of how much that would cost the taxpayer in net terms? My hunch is that it would actually cost more than it would raise, and therefore not only would the policy not deliver for everyone, it would not deliver for anyone.

[Gillian Keegan]

I thank my hon. Friend for her intervention, showing her economic literacy in full. I will get on to explaining some of the figures.