Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether her Department has made an assessment of the potential impact of increases in employers’ National Insurance contributions on (a) cost pressures for independent schools and (b) the number of children leaving the independent school sector; and whether the figures included in HM Revenue & Customs policy paper entitled, Applying VAT to private school fees, published on 30 October 2024, took account of proposed increases in employers’ National Insurance contributions.

The government publishes Tax Information and Impact Notes (TIINs) for tax policy changes when the policy is final or near final. TIINs give a clear explanation of the policy objective together with comprehensive assessment of the impacts on individuals and families, businesses and the wider economy, equalities impacts, and any other specific area of impact. TIINs look at the impacts of changes to the tax system separately for each measure.

A TIIN assessing the impacts of applying VAT to private school fees has been published online and can be found here: Private school fees — VAT measure - GOV.UK (www.gov.uk).

Details of the changes to business rates charitable rate relief and changes to employer National Insurance contributions (NICs) were outlined at Budget. Notes on the general impacts of these measures will be published in due course alongside the respective legislation when it is introduced to Parliament.