Independent Schools: VAT and Business Rates Exemptions Debate

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Department: HM Treasury

Independent Schools: VAT and Business Rates Exemptions

Paul Kohler Excerpts
Tuesday 8th October 2024

(1 month, 1 week ago)

Westminster Hall
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Paul Kohler Portrait Mr Paul Kohler (Wimbledon) (LD)
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It is a pleasure to speak under your chairmanship, Dame Caroline.

As the MP for Wimbledon, I am proud to represent a constituency with such a rich and diverse education offering, including fantastic primary and secondary schools in both the independent and state sectors. I am deeply concerned about the impact that the removal of the VAT exemption will have on many of these schools. Private school enrolments have already dropped in expectation of the tax hike, and there is growing concern that the numbers leaving the private sector and entering the state system will be much higher than the Government estimate.

As the right hon. Member for Islington South and Finsbury (Emily Thornberry) made clear when she said it did not matter if imposing VAT resulted in state school class sizes increasing, this decision is ideological, not practical—levelling down, not up, with red meat to show that the red flag is still flying, or at least fluttering. It will be rushed through in just three months’ time, in the middle of the academic year, giving institutions with no tax expertise little time to register for VAT, let alone assess and adapt.

Labour can only do this because the UK left the EU. Who said there were no Brexit dividends? Not for the first time, my party is in harmony with Brussels, and believes that education should not be taxed. We are a party that believes in giving individuals agency and supporting them in making choices about their and their families’ lives.

For many, such decisions are made because they know their child would not receive the support they need within the state sector. Independent schools in my constituency, such as the Hall school, Willington and the Study, to name but three, do a huge amount to support children with special educational needs. I have spoken to many parents who have made tough financial sacrifices in order to send their children to these schools. They speak of the barriers to their children receiving the support they need, including long waiting lists to receive an EHCP. According to the Independent Schools Council, 90,000 children are receiving SEND support without an EHCP.

In short, this Government should be aiming to improve all schools, regardless of their status, and they should be pursuing policies based on evidence, not dogma.

Caroline Dinenage Portrait Dame Caroline Dinenage (in the Chair)
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I thank all Members for their forbearance and efficiency this morning. We have managed to get through everybody. I also thank the Front-Bench spokespeople for forgoing a little bit of their summing up time. I call Sarah Olney for the Liberal Democrats.