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.

Independent Schools: VAT and Business Rates Exemptions

Priti Patel Excerpts

Tuesday 8th October 2024 Westminster Hall

[Bradley Thomas]

I will not give way. Independent schools should be seen as a British success story, both culturally and economically, instead of being discouraged and punished with the imposition of an education tax for socialist ideological principles. Most importantly, the human impact of the policy is stark. The failure of this education tax will not just be academic or financial; it will have a serious impact on families.

One parent wrote to me:

“As a widowed single mother who works full-time, I make enormous financial sacrifices to ensure my child can attend the same school from age 3 to 18. This stability is not only essential for my child’s development but also enables me to work and contribute to society. This proposed VAT would be devastating for families like mine.”

Another mother wrote to me and said,

“We also have a daughter who will need to start secondary school in two years. We had hoped for her to attend the same school as her brother but, with no scholarship likely and the addition of VAT, it is simply impossible. This is a painful realisation, and I worry that she will resent the opportunities that we couldn’t give her (but we could give her older sibling).”

We have yet to talk about the impact on special educational needs and disabilities education. This measure will cause particular problems for children who are in receipt of such bespoke education. Nationally, at least 130,000 pupils in independent schools receive SEND support in mainstream and specialist settings. That is 20% of the pupils in UK independent schools, which is slightly higher than the state school average. Independent schools help to provide additional value-adding capacity to SEND education.

[Priti Patel (Witham) (Con)]

I congratulate my hon. Friend on securing this important debate. On special educational needs, this measure will devastate many families around the country who make huge sacrifices. When the Minister sums up, will he tell us what mitigations and support will be given to local authorities to cover the cost and the pressures they face, particularly with shortages in special educational needs provision across the country?

Winter Fuel Payment

Priti Patel Excerpts

Tuesday 10th September 2024 Commons Chamber

[Priti Patel (Witham) (Con)]

Who would have thought that one of the first acts of this awful, cruel and ideological Labour Government would be to assault the nation’s pensioners by removing winter fuel payments? Let us be candid: the nation’s pensioners are falling victim to an ideological decision—a betrayal by Labour as it succumbs to shovelling gross amounts of public spending into the pockets of many of its union paymasters.

It is quite interesting—[Interruption.] No. I have a time limit; the hon. Member has already spoken. It is interesting that there has been so little transparency around finances and the fiscal choices that the Government have chosen to make. There has been no impact assessment, no honesty around the cost of all this to the Exchequer in the long run, and nothing about the administration of the household support fund. How have Labour Ministers made the spurious claim that they have had no choice in this decision? Bear in mind that the Government—so desperate are they to justify this brutal cut—claimed a couple of weeks ago that there would be a “run on the pound” without the decision, which is just extraordinary and speaks to their fiscal ineptitude.

I have a series of questions on the mitigations. First, it is right to encourage more pensioners to take up pension credit where they are entitled to it. I know from my time at the Department for Work and Pensions that many on the Conservative Benches have spent years encouraging pensioners to take up pension credit. We should know how the targeting will work and what the cost will be.

Secondly, in recent days the Government have been spinning, yet again, that those affected by the loss of the winter fuel payment will benefit from an estimated £400 rise in the state pension. Will the Minister confirm what the net real-terms impact will be on overall household incomes for those who are losing the benefit, and will he confirm how it will add up over time and what the actual cost will be?

Thirdly, concerns have been raised throughout the day that if pensioners cannot afford to heat their homes there will be a serious impact on health. We do not have an impact assessment, so can we have some honesty now? What are the costs to the NHS? The Government owe it to the British people to be honest about this. We have heard that the household support fund will be extended, but how exactly will that £500 million be funded? Who will pay for it?

Finally, there are so many unanswered questions. The Government must be honest and answer them. There has been a lack of transparency, with no impact assessment whatsoever. It is right that we hold the Government to account and that they are honest with British pensioners about their intentions, even on the future of the triple lock.