VAT: Independent Schools

Mims Davies Excerpts

Tuesday 8th October 2024 Commons Chamber

[Damian Hinds]

My right hon. Friend is of course correct about the economic contribution that schools make locally and the large numbers of people they employ. That point was also made by NASUWT, which is worried about teachers being inadvertently pushed out of the profession if redundancies are made mid-way through the school year.

[Mims Davies (East Grinstead and Uckfield) (Con)]

My youngsters have had a mix of excellent learning, including in nursery and in state education, as have youngsters in many families. I have a personal and constituency interest in wanting all education settings to thrive, so I agree with my right hon. Friend. The economic and employment impact of this new tax will be devastating for bus drivers and maintenance teams. It will impact on so many livelihoods and communities. The people picking up the unknown impact will be in the state sector. The policy will just deliver more of the unknown.

--- Later in debate ---

[James Murray]

As I was saying to the right hon. Member for Witham, the Government will publish a tax information and impact note on the VAT policy change at the Budget, once the independent Office for Budget Responsibility has scrutinised and certified the costing of the final policy.

[Mims Davies]

Will the Minister give way?

[James Murray]

I am still replying to the hon. Member’s right hon. Friend. [Interruption.] Maybe Conservative Members could sort this out on their side of the House before they come into the Chamber, but I will continue replying to the right hon. Member for Witham.

Turning to the legal cases, the Government have considered the policy’s interaction with human rights law and are confident that it is compatible with the UK’s obligations under the Human Rights Act. I hope that addresses the right hon. Member’s concerns.

[Mims Davies]

Will the Minister give way?

[James Murray]

I will.

--- Later in debate ---

[Mims Davies]

I thank the Minister for kindly giving way. This policy will have an economic impact in each and every constituency: on librarians, on maintenance people and on those who work in labs, in catering and as minibus drivers—everything that is predicated on schools such as the ones we are discussing. Will the impact assessment and the Treasury look at the wider implications for employment?

[James Murray]

As the hon. Member knows, there are established processes for developing tax information and impact notes. This one will be developed in line with the OBR costing in the normal way and published alongside the Budget, so she will see all the information.