2 Iqbal Mohamed debates involving HM Treasury

VAT: Independent Schools

Iqbal Mohamed Excerpts
Tuesday 8th October 2024

(1 week, 1 day ago)

Commons Chamber
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Damian Hinds Portrait Damian Hinds
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I ask my hon. Friend to forgive me, as I must make progress.

As for children whose parents are priced out of a school, or face its closure, disruption to learning can be difficult at any time, but it is even more problematic when pupils have started a public examination course. Their next school might not even offer the subjects that they were taking, or the exams might not be marked by the same exam board. We need to think about those children. The tax levy should be postponed until pupils who are now in years 10 or 11, or in the lower and upper sixth form, have finished their exams—until 2025 or 2026.

The widest impact of all will be felt by state schools. Ministers have said repeatedly that there is no problem because there are plenty of spaces in state schools. We have repeatedly pointed out that that is of no help at all if those places are in the wrong places or the wrong year groups. They need to be where and for whom they are required.

Iqbal Mohamed Portrait Iqbal Mohamed (Dewsbury and Batley) (Ind)
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State schools in my constituency are bursting at the seams. There are no spare spaces to move into for the more than 1,000 children being educated in independent schools there. The fees charged by those independent schools are a quarter to half of the cost of state school provision per pupil.

Damian Hinds Portrait Damian Hinds
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I am grateful to the hon. Gentleman.

Independent Schools: VAT and Business Rates Exemptions

Iqbal Mohamed Excerpts
Tuesday 8th October 2024

(1 week, 1 day ago)

Westminster Hall
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Al Pinkerton Portrait Dr Al Pinkerton (Surrey Heath) (LD)
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It is a pleasure to serve under your chairmanship, Dame Caroline. I thank the hon. Member for Bromsgrove (Bradley Thomas) for securing this important debate. In my constituency, there are six small independent schools, two of which are dedicated to special educational needs, serving a total of 820 students. I have heard from each of those schools, from families of current students and from teachers in the state sector about the potential impacts of imposing VAT on private education provision.

I want to highlight two issues that relate particularly to the educational ecosystem of Surrey Heath, but which will, I think, also resonate widely across the country. The first is special educational needs. Of the 820 students in private schools across Surrey Heath, 230 have special educational needs of varying degrees of severity, and, of those, 138 are not in possession of an EHCP. That figure indicates the disproportionate service and choice that small, local private schools provide children and families with special educational needs.

For those children and families, private provision is more than just an alternative to the state sector; it is a crucial lifeline for children who struggle in mainstream education or who cannot secure one of the limited places in a special educational needs school provided by Surrey county council. Parents and headteachers have made it clear to me that families with children with special educational needs already face significant financial strains, and an additional 20% will be the tipping point that forces already stretched families to withdraw their children and turn again to an overstretched county-run system.

Iqbal Mohamed Portrait Iqbal Mohamed (Dewsbury and Batley) (Ind)
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The state schools in my constituency are already bursting at the seams, and we have hundreds of children who are outside of education, many of whom are unable to receive homeschooling. There are six private schools in my constituency, educating more than 1,000 children. The lowest fees start at £1,800, with the highest at around £3,300. We are talking about working-class, low-income families with children who have special educational needs. If enacted, the policy would be hugely damaging to those families’ financial situation and their children’s education. I strongly urge the Government to assess the impact of that and put in place protection mechanisms for such schools.

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.