Gregory Stafford

Gregory Stafford

Conservative — Farnham and Bordon

Speaking in the House of Commons on 3 March 2025

Debate

Independent Schools: VAT and Business Rates Relief

Contribution

It is a pleasure to serve under your chairmanship, Mrs Lewell-Buck. I congratulate my hon. Friend the Member for Berwickshire, Roxburgh and Selkirk (John Lamont) on leading today’s debate. I declare an interest as the father of children who currently attend an independent school. I am afraid it is not a pleasure to speak today about the vicious, vindictive and, ultimately, financially valueless policy that the Labour Government have brought in. As has been said, no other country—no serious country—in the world taxes education. The sorts of schools being taxed are faith schools; arts, drama and music schools; single-sex schools; and independent schools to which armed forces parents send their children. As a side note, a member of our armed forces said to me last week that, in their view, this policy was a breach of the military covenant. This is not about a tax break, as Labour Members have said. Tax has never been levied on education in this country, so this policy is an additional tax on education. It is not a tax break. As other hon. Members have said, parents who make the sacrifice to send their children to the independent sector are saving money for the state sector. Across my constituency of Farnham and Bordon, including Haslemere, Liphook and the surrounding villages, we are lucky to have 11 excellent independent schools that cater both to junior and to senior pupils. But unfortunately, only last Friday we discovered that one of those schools will close at the end of this academic year. The Royal school in Hindhead has been a cornerstone of education since 1840. It was formerly the Royal Naval school, and was specifically set up to educate girls—the founder had the ambition for girls to become independent members of society, and it was a pioneering school in that effort. As other hon. Members have said, single-sex education has worked wonders for girls in terms of not only their education but their social mobility. The school became co-educational more recently but, as my hon. Friend the Member for South West Hertfordshire (Mr Mohindra) said, this is a real problem. I recognise that the school had ongoing financial difficulties, but it is deeply unfortunate that the Labour party’s policies on low-fees schools—those that charge around £3,000 per term—seem to have been the final blow to the school’s long-standing viability. The Royal school has been not only a significant education institution for generations of pupils but a key part of the fabric of our community, employing people and helping the state sector with areas where it cannot produce. I take this opportunity to express my sincere gratitude to its dedicated teachers and staff who have worked tirelessly over the years, and to acknowledge the sense of loss felt by all of us in the Haslemere community. However, it is equally important to highlight the profound impact that the closure will have on the parents and families who are now faced with the difficult task of finding alternative provision. Mr Chancellor, a single father of an adopted child, spoke to my office only this morning. He took on the financial strain of a fee-paying place at the Royal school to allow him to drop his child at school and know that, between the hours of 7.45 am and 5.30 pm, his child would be cared for, fed and looked after. That allowed my constituent the flexibility of extra time to work on his small business. That is the sort of impact there is on the hard-working local people the Labour Government profess to want to support. Families such as Mr Chancellor’s will either have to seek places in other independent schools or, regrettably, be forced to turn to an already overstretched and underfunded mainstream education system. Although Mr Chancellor has commended the work of Surrey county council admissions team—who were also left in the dark about the school’s closure—there is clear anxiety for parents whose children’s fate is currently unclear. State schools across Farnham, Bordon, Haslemere and Liphook are already bursting at the seams. The fees charged by independent schools are often only a quarter, or even perhaps half, of the cost of state school provision per pupil. That has meant that for decades independent schools have taken huge strains from the state system in educating a percentage of pupils from nursery age until they are young people. Last October, following a meeting I organised in my constituency with the then shadow Chancellor—my right hon. Friend the Member for Godalming and Ash (Jeremy Hunt)—and my right hon. Friend the Member for East Hampshire (Damian Hinds), I wrote to the Department for Education and the Treasury. The Exchequer Secretary’s reply emphasised that the policy was supposedly forecast to raise around £1.8 billion, but realistically, even if that were true—the Opposition dispute that heavily—that is a mere drop in the ocean for Government spending, particularly when TaxPayers’ Alliance research reported that the policy comes at a net loss for the Treasury, as state spending has been forced to stretch per capita to facilitate 35,000 pupils now expected to be educated in the mainstream schooling system. Last week, Surrey county council admitted to me that it does not have enough state school places to accommodate children transferring to state schools. When will the Government understand that these policies are crippling local authorities that are trying immensely hard to cope with the volume of displaced children? It is not just about the fact that there are not enough places in the state sector. My right hon. Friend the Member for East Hampshire will know all too well that Alton Convent school in his constituency closed last year. During the general election campaign, I knocked on the door of a gentleman whose children had just got a place at that school, only to find that they now would not have it. But they could not get a place in the local state school because he had not sent his children to the local junior feeder schools. He would not have been able to get a place at the local school even if there had been one. In my constituency, no group has been more profoundly affected by the Government’s damaging policies towards independent schools than the parents and families of children with special educational needs and disabilities. The closure of the Royal School and the narrowing of available educational options serve only to exacerbate the already significant challenges faced by these families. Across my constituency, we are fortunate to have three special schools: Undershaw, Pathways and More House. Since my election, I have met multiple headteachers, including Jonathan Hetherington, the headteacher at More House, a renowned SEND school for boys in Frensham. Only this morning, I attended a meeting with 25 parents from the Last Wednesday SEN support group in Farnham. Because Wednesdays are not great for Members of Parliament, they were charitable enough to change their name to “First Monday” this week, just for me. I joke, but one lady was in tears this morning about the impact that this spiteful policy will have on her child. Many will be forced to navigate a new school and new academic curricula, all while receiving little to no support and without a formal education, health and care plan. Some of my constituents, across both counties—Surrey and Hampshire—are having to wait 24 months to receive their EHCPs. Between 2019 and 2024, the uptake of EHCPs increased by 63% in Surrey and 93% in Hampshire —both well above the national average. When he responds, can the Minister tell us what is being done, and what conversations he is having with the Department of Health and Social Care and the Department for Education to expedite that process? In my local area, I am genuinely concerned about the fact that 17% of independent school pupils receive SEND support, but only 6% of them have a formal EHCP. I want to quote the Prime Minister, who shared the Government’s supposed plan for SEND pupils who do not have an EHCP, or who are in the process of acquiring one. In June, the Prime Minister told LBC listeners: “Where there isn’t a plan, then that exemption doesn’t apply.” So there is no assurance for those children and those parents. I did not receive any assurance in last week’s debate on SEND education support, so I ask the Minister to confirm that the 93,000 children in the independent sector who receive SEND support but do not have a formal EHCP will not be included at all in the SEND education support plans, as the Prime Minister seemed to outline in June. Increasing VAT on independent school fees to 20% is not just a fiscal policy; it is a direct assault on the educational choice and social mobility of our constituents. This policy threatens to attack thousands of students in an already strained system, undermining the very fabric of our diverse educational landscape. The influx from the independent sector will exacerbate existing pressures, leading to larger class sizes and diminished resources for all. Is this really the legacy that this Labour Government want to leave: a society in which educational diversity, which leads to educational excellence, is sacrificed at the altar of a misguided and malign fiscal policy fuelled by class envy? I urge the Minister to reverse this punitive tax and champion a system that upholds choice, fosters excellence and truly invests in the future of every child.

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