Private Education: Business Rates and VAT

(asked on 11th February 2025) - View Source

Question to the Department for Education:

To ask the Secretary of State for Education, if she will make an assessment of the potential impact of (a) business rates on private schools and (b) VAT on school fees on economic growth.


Answered by
Stephen Morgan Portrait
Stephen Morgan
Parliamentary Under-Secretary (Department for Education)
This question was answered on 19th February 2025

Economic impacts of the policy to apply VAT to private school fees are covered in the tax information and impact note (TIIN) that the government has published on GOV.UK. The publication can be accessed here: https://www.gov.uk/government/publications/vat-on-private-school-fees/ac8c20ce-4824-462d-b206-26a567724643.

The Ministry of Housing, Communities and Local Government (MHCLG) has introduced the Non-Domestic Rating (Multipliers and Private Schools) Bill to remove eligibility to business rates relief from private schools that are charities. MHCLG has published an impact note alongside the Bill, and this can be found at: https://publications.parliament.uk/pa/bills/cbill/59-01/0129/ImpactNote.pdf.

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