Helen Maguire debates involving HM Treasury during the 2024 Parliament

Oral Answers to Questions

Helen Maguire Excerpts
Tuesday 29th October 2024

(3 weeks, 2 days ago)

Commons Chamber
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Darren Jones Portrait The Chief Secretary to the Treasury (Darren Jones)
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My hon. Friend is right to point out the opportunities for improvement. As the Chancellor set out in her July statement, prevention will be at the heart of this Government’s new approach to public service reform. That will be set out in the spending review in the coming months.

Helen Maguire Portrait Helen Maguire (Epsom and Ewell) (LD)
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T5. Many households are facing homelessness due to increasing household costs. What support can the Chancellor provide to them?

Rachel Reeves Portrait Rachel Reeves
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Building the homes that our country needs is a top priority for this Government. In our manifesto, we committed to build 1.5 million homes in this Parliament, including social housing, so that people have access to secure and affordable accommodation and that every family have a roof over their heads. We will set out more details on all of this in the Budget tomorrow.

Independent Schools: VAT and Business Rates Exemptions

Helen Maguire Excerpts
Tuesday 8th October 2024

(1 month, 2 weeks ago)

Westminster Hall
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Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.

Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.

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Caroline Voaden Portrait Caroline Voaden (South Devon) (LD)
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My constituency of South Devon is home to several small independent schools that offer an alternative education from the mainstream offer from state schools: education that caters brilliantly for pupils who struggle to fit in with the demands of the mainstream curriculum. I have heard from several parents whose children could not cope in state schools—they live with autism or other mental health challenges—but are thriving in those small private settings. These small independent schools, whose fees are as low as they can make them, offer smaller class sizes, fewer class transitions during the day and more emphasis on wellbeing and creativity.

The parents who have contacted me in desperation over this proposed change are not wealthy. They are scraping together the fees so that their children can attend a school where they can thrive. One told me that she had sold her house and given away the family pet in order to move into a flat. She changed job to be able to afford the fees, and she now buys everything second hand. Another said that they had also sold their home and moved house to afford the fees at their local Steiner school as their children had also failed to cope with mainstream schooling.

The introduction of VAT on private school fees may not have much impact on parents who can afford £50,000 a year for a child. However, one school in my constituency, whose fees are just £10,000, said that it will face closure if it loses just four more children from its roll. All those small schools are trying to absorb as much of the cost as possible, with teachers taking salary cuts and much-needed building repairs being put on hold indefinitely. Will the Minister think about the impact the tax will have on the children who cannot get an EHCP? They cannot cope with the rigours of the state school system and they will quite probably end up dropping out of school completely if this goes ahead, with all the implication that has on working parents who then may have to consider homeschooling instead. I urge the Minister to think about a lower fee threshold for the introduction of VAT. After all, those parents are already paying income tax to cover an education that their children do not receive.

Helen Maguire Portrait Helen Maguire (Epsom and Ewell) (LD)
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My hon. Friend raises a good point, and I was glad to hear that Labour is giving consideration to cases in which independent school provision has been specified in education, health and care plans. However, as has already been raised, many children have special educational needs and do not require an EHCP; that means that many children with SEN are currently being educated in independent schools as there is insufficient support in the state school system. As such, the families are having to bear the fee increase. Does my hon. Friend agree that the Government must ensure that those vulnerable children are not disadvantaged by this policy?

Caroline Voaden Portrait Caroline Voaden
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I absolutely agree with my hon. Friend that those children are going to be most affected by this policy. For those families, the tax change is a regressive step that will force them into an impossible situation and have a devastating impact on children who have already had a difficult start in life—many of whom have experience of the care system, our failing mental health system and a state school system completely unable to cope with all their additional or complex needs. Yes, the state school system desperately needs investment—we know that. We know that the provision for SEND is in a disastrous state, nowhere more so than in Devon, and the chronic underfunding of councils by the previous Government has decimated SEND provision.

--- Later in debate ---
Al Pinkerton Portrait Dr Pinkerton
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I agree with the hon. Gentleman entirely.

My second point relates to military families. As we have close ties to Sandhurst, Pirbright and nearby Aldershot, around 10% of pupils in my constituency come from military families. Those families already report that they are struggling with fees because of the increasing gap between the continuity of education allowance paid by the Ministry of Defence and the rising cost of private education, and adding 20% would widen that gap further still. Many families would reach their tipping point and be forced to withdraw their children from their current schools, with all the attendant risks.

Helen Maguire Portrait Helen Maguire
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My hon. Friend raises an excellent point. As the Liberal Democrat defence spokesperson and as a veteran myself, I can only reiterate the importance of a stable environment for the children of armed forces personnel. Does he agree that the Government must continue to support a stable environment for our armed forces personnel as they continue to protect our country, both at home and overseas, and that the Government must explain exactly how they will achieve that?

Al Pinkerton Portrait Dr Pinkerton
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I agree entirely with my hon. Friend. I know that residents in my constituency face having to leave the armed forces because of the disruption that the added VAT would cause and the difficulty of procuring educational offerings. I ask the Government to think again about this policy—this education tax—and its timing and application, especially now, when SEND provision is already broken in counties such as Surrey and requires fundamental reform; when local independent schools are already struggling, having borne many of the costs associated with inflation, lived through the pandemic and endured many of the costs attached to that; and when state schools are already struggling to provide the education that they want to provide.