VAT: Independent Schools Debate

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Department: HM Treasury

VAT: Independent Schools

Saqib Bhatti Excerpts
Tuesday 8th October 2024

(1 week, 1 day ago)

Commons Chamber
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Saqib Bhatti Portrait Saqib Bhatti (Meriden and Solihull East) (Con)
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I want to say from the outset that this is clearly an attack on aspiration, an attack on opportunity. I say to the constituents of the hon. Member for Southampton Itchen (Darren Paffey) that he voted for winter fuel payments to be slashed and now he is voting for an attack on hard-working families who will be struggling to make ends meet. I went to a state school and an independent school and I was grateful for both those journeys and the education that I received in both. Plenty of hard-working families will be struggling to make ends meet.

The first point I want to make is about tone. I will come back to the Education Secretary’s tweet, which was deeply offensive. Surely Labour Members must acknowledge—it is a simple case of maths—that people who are rich enough to afford VAT increases, whether it is 4%, 16%, which is the average, or the whole 20%, will continue to send their kids to independent schools and pay the fees. It is the people who are struggling to make ends meet, or the really hard-up families, or—God forbid—parents of children who are on scholarships and bursaries who will no longer be able to send their kids to those schools, because those schools will have to withdraw those scholarships and bursaries as they will be less affordable. So the tone of this debate is really important. I would caution the Government to be more reticent on this. They refer to tax breaks; these are not tax breaks. Education should not be, and is not, taxed, and they are about to open that Pandora’s box.

There have been a lot of comments from Government Members about state schools. I agree: standards in state schools should be improved. They talk about the last 14 years. We delivered a real-terms increase per pupil. We have delivered record funding—about £60 billion. They may challenge that, but it is pure fact. I am happy to share those facts. We did that, and the result of that, especially with our focus on things like phonics, which Labour challenged when in opposition, is that we now have some of the highest reading standards in the world—independently and internationally rated. We also have some of the highest ratings in mathematics. So the Government may try to frame this debate as anything other than ideological, but those arguments are severely undermined by the Education Secretary’s tweet, which put it out there that this is really a class war.

Caroline Johnson Portrait Dr Caroline Johnson
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My hon. Friend is making a great point about how this change is ideologically motivated. Can he see why there is a difference between private school fees, which the Government have chosen to tax, and something like Kip McGrath tuition, which is also a paid-for form of education, which they have chosen not to tax—at least yet?

Saqib Bhatti Portrait Saqib Bhatti
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My hon. Friend made an excellent speech about the practicalities of introducing this change in January, and she makes an excellent point now about the slippery slope involved. The Government say that the money will be focused on educational improvements, but there is no guarantee of that, as it will go into the general pot. They promised 6,500 new teachers, which is fewer than we delivered; it is a drop in the ocean, which will barely make a difference to the hundreds of thousands of schools that, of course, need extra teachers. I concede that point; we should have better educational standards.

SEND will affect every Member of Parliament. It affects me. I was with a north Solihull parents group just a few weeks ago. Those parents will no longer be able to afford to give their children a private education for SEND purposes, and they will now have to rely on the state. Surely Government Members can see that that will further increase the burden on state provision, particularly if they are right that there is a lack of teachers. The Minister might address this point: how does this policy improve state school provision? How does it improve the standard and quality of delivery for SEND parents? It was all right for the Prime Minister to make special provision for his kids, and for the Education Secretary to have a benefactor, but what are these parents going to do?