Question to the HM Treasury:

To ask His Majesty's Government, further to the Written Answer by Baroness Smith of Malvern on 16 September (HL602), what plans, if any, they have to conduct an impact assessment and cost benefit analysis of the introduction of VAT on private school fees prior to implementation; and what advice they received from the accounting officer regarding their plans for implementation and the quality and validity of the research cited in the previous answer.

On 29 July, the Government announced that, as of 1 January 2025, all education services and vocational training provided by a private school in the UK for a charge will be subject to VAT at the standard rate of 20 per cent. This will also apply to boarding services provided by private schools.

Whilst developing this policy, the Government has carefully considered the impact it will have on pupils and their families across both the state and private sector, as well as the impact it will have on state and private schools. Following scrutiny of the Government’s costing by the independent Office for Budget Responsibility, the Government will confirm its approach to these reforms at the Budget on 30 October, and set out its assessment of the expected impacts of this policy in a Tax Information and Impact Note in the usual way.