Mr Mark Francois

I thank the hon. Gentleman for his intervention. As we are on Report, we are trying to amend the Bill where we think it could be improved. Just because we have the Bill as originally produced on First Reading does not mean that it cannot be improved. If I may humbly say so, that is what Report is about. This subject is pressing—I say this particularly to the hon. Member for North Durham—as the consultation on it closes tomorrow. The Veterans Minister replied to me on this subject—hey presto!—just this morning. I quote from his letter: “I would seek to reassure the Right Honourable Gentleman that an existing exemption in Inheritance Tax legislation means that active members who die as a result of their service, are exempt from Inheritance Tax provisions.” However, that only applies to those killed while on active service. It does not apply to those who are still in the service of the Crown but die of natural causes, so I am afraid that the Veterans Minister’s reply is smoke and mirrors, as it deliberately ducks the issue of those who die of natural causes while still in service with living dependants. The Government have already upset farmers and business owners through their proposed inheritance tax changes; they surely do not want to upset service families as well. I say to the Minister that if, at what is now the third time of asking, we do not receive a satisfactory reply this afternoon, we will be strongly minded to press amendment 9 to a Division in order to hold Ministers to account and try to achieve positive change. With the consultation closing tomorrow, I will listen very carefully to what the Minister says about this issue in his response, but having given him two previous bites at the cherry, I am afraid that we may be likely to divide the House if we do not receive a satisfactory reply on behalf of those service families who may be affected. As you can see, Madam Deputy Speaker, amendment 10 covers three topics: the “operation of the Continuity of Education Allowance”, or CEA as it is known; “the provision of Special Educational Needs tuition” for the children of armed forces personnel; and “the maintenance of service families’ accommodation.” I will take those topics in reverse order. On service families’ accommodation, I welcomed in Committee the recent announcement that the Government intend to, in effect, buy back service family accommodation from Annington Homes. I know that my hon. Friend the Member for South Suffolk (James Cartlidge) also welcomes these proposals because—as Ministers, to be fair to them, have already acknowledged on the Floor of the House—while in government, he spent a great deal of time working on the scheme. He is understandably very pleased to see those efforts come to fruition, albeit under a Government of a different colour, as indeed am I. We should give credit where it is due. Service housing was mentioned multiple times in Committee, and there seems to be little doubt but that it qualifies as a general service welfare matter. However, I have included the topic in this amendment to facilitate a brief discussion on the management and maintenance of service housing post Annington, as it were, and in the timeframe during which the new Armed Forces Commissioner is likely to be in operation. The fact that the MOD will in effect recover the freehold of its properties and be the landlord opens up exciting opportunities to change the maintenance of service family accommodation and, indeed, of single living accommodation as well. The Minister will be aware that, when I was a Minister, I was commissioned by a former Prime Minister to write two reports: one was on armed forces recruitment, subsequently entitled “Filling the Ranks” and delivered in 2017; and as a result of the first report, a second one was on retention, entitled “Stick or Twist?” and delivered in February 2020—barely a month before the nation went into lockdown because of covid. I know that some Defence Ministers have kindly taken the time and trouble to look at those reports, so I shall not attempt to repeat their contents here, except to make one specific point on the management of SFA. Having looked at the matter in detail, my team concluded very strongly that there must be a better way of managing service housing than the current Future Defence Infrastructure Services contract. Our alternative, which I believe now has new resonance as the homes are transferred from Annington back to the MOD, would be to form a dedicated forces housing association, the fundamental purpose of which would be “to provide high quality, well maintained accommodation for service personnel and their families at an affordable cost.” I think the Minister has kindly read this report, as has the Veterans Minister, who has responsibility for it, and I hope he will take that on board. We debated special educational needs in some detail in Committee, so I do not propose to repeat all of that again, but I refer the Minister to a recent Public Accounts Committee report that was published last week on the topic. The continuity of education allowance is a very important issue, particularly as it affects retention. The VAT increase of 20% will affect around 4,200 children of service personnel, but the MOD is increasing the CEA cap only by 12.5% for senior school students and 16.6% for junior school students, leaving their parents to make up the difference from their post-tax income. This has already come into effect from 1 January, or about three weeks ago. A joint briefing note from the Independent Schools Council and the Boarding Schools’ Association points out that the VAT will cover both tuition fees and boarding accommodation at independent boarding schools. In the worst cases, the VAT will have an adverse impact on military families using CEA, who could see their contributions increase by over 50% for senior school pupils. The Treasury’s VAT consultation said that it would “monitor closely the impact of these policy changes on affected military and diplomatic families, with the upcoming Spending Review being the right time to consider any changes to this scheme.” The spending review—[Interruption.] Madam Deputy Speaker, I believe we have until 6 o’clock. The spending review will not report until this summer, but military families are having to pay the increased costs now, and I have a whole range of quotes that I could read into the record.