Independent Schools: VAT

Lord Watson of Invergowrie Excerpts

Thursday 17th October 2024 Lords Chamber

[Lord Watson of Invergowrie (Lab)]

My Lords, I commend the noble Lord, Lord Lexden, whom I much respect, for giving us this debate on a subject that is, I know, close to his heart.

The question of VAT on independent school fees was widely circulated before the election, so nobody should be surprised by it. I accept that the January date will have come as a surprise to some but, having said that, if a school has decided that the imposition of VAT will mean it has to close, I cannot believe that the tax starting in January rather than September will be the deciding factor. Surely no school that values its students would close half way through an academic year.

The noble Lord, Lord Lexden, mentioned job losses and the National Education Union. It seems inconsequential to me because, given the issues around the retention and recruitment of teachers, any teacher unable to gain employment in the independent sector will have no difficulty in getting a job in the state sector.

My final point is that there seems to be a hypocrisy here. The Tories have characterised the proposed national insurance contribution rise as ignoring a Labour manifesto commitment. Here is a Labour manifesto commitment being delivered, yet there is more criticism. You cannot have it both ways—much as some would like to.