VAT: Independent Schools

Priti Patel Excerpts

Tuesday 8th October 2024 Commons Chamber

[James Murray]

My hon. Friend makes an important point about the reason why we have taken the tough decision to end tax breaks for private schools. It is to fund our education priorities, because we know that the way to improve opportunities for people right across this country is to make sure that our state schools can provide the best-quality education for all children.

[Priti Patel (Witham) (Con)]

The Minister was in a similar debate this morning, in which he heard a range of views. He is a Treasury Minister, not an Education Minister or the Education Secretary; will he commit to publishing an impact assessment on the overall cost of this policy? There were parents in the Gallery listening to the debate this morning, and it is clear that there will be a legal challenge to this policy. Will the Treasury also publish the potential cost of that legal challenge and the bill that his Department will be footing in order to meet it?

[James Murray]

I thank the right hon. Member for her contribution. First, in terms of an impact assessment, while developing these policies, the Government have carefully considered the impact they will have on pupils and their families across the state and private sectors, as well as the impact they will have on state and private schools. In addition to having reviewed analysis published by third parties such as the Institute for Fiscal Studies, the Government have conducted their own analysis of the likely impacts of these policies, which draws on a range of sources.

--- Later in debate ---

[Priti Patel (Witham) (Con)]

It is important to start by saying that this entire policy is dogmatic and rooted in the politics of envy—that really is self-evident. It comes from a self-serving socialist Government that are ignorant and blind to the harm that it will lead to for families up and down the country. In the time that I have, I would like to pose a series of questions directly to the Government. This is not only a bad policy; there has been no information on its implementation and what it means for private schools and state schools. That has been raised by shadow Front Benchers and I think we should get some transparency. I would like a response later on.

When the Minister responds, I would also like to hear the details of the costs caused by adding VAT to school fees and the cost of the removal of the business rates exemption. The House has a right to hear where the impact assessment is, what the fiscal projections will be and what the costs will be across every Government Department that is affected. That will be the Department for Education but also the Ministry of Housing, Communities and Local Government, because it is local councils that will continue to pick up the costs.

I put a question about this next matter directly to the Exchequer Secretary, who was also in the Westminster Hall debate this morning. We know that legal action is coming, and I think that the Government should fess up and tell us what percentage of the DFE budget will be put aside to fund the legal challenge. There are parents out there who are so unhappy about this—we met some of them this morning—and they are adamant that they will pursue legal action.

There are many other questions, such as about justification and the implications for local authorities, but I think the point about SEND is important. The House of Commons has published a note that says that for 2024-25, the previous Government had been increasing SEND funding to over £10.4 billion in real cash terms. Is that funding going to go up under this Government, in anticipation of the implications of this policy for children with special educational needs? That could include a growing demand for education, health and care plans. Local authorities are failing, and many of them are Labour authorities. Some of them have gone bankrupt as well in recent years.

There will be an impact on state schools, as they will have to accommodate additional pupils. We need some honesty and transparency around this. Class sizes are going to increase in state schools. How is that going to increase the educational outcomes of children attending state schools? How is that going to raise the bar and increase standards in state schools? We all believe in good educational outcomes for all children across the entire country and we want our education system to be first class and to serve all children, but fundamentally this is just an ill-thought-out policy that will have more costs associated with it and devastating impacts for children attending independent schools.

I ask the Minister in his summing up to show a little bit of humility—[Interruption]—and recognise the implications for these children. Labour Members are giggling, but actually this is about children and about the impact of this policy on children whose education will be affected.