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The Financial Secretary to the Treasury (Lord Livermore) (Lab)

Speaking in the House of Lords on 21 October 2024

Debate

Independent School Fees: VAT

Contribution

My Lords, in July, the Government set out their view that the number of pupils who may switch schools as a result of these changes represents a very small proportion of overall pupils in the state sector. Projections from the Institute for Fiscal Studies suggest that this is likely to represent less than 0.5% of total UK state school pupils, with any movement expected to take place over several years. At the Budget, the Government will set out our assessment of the expected impacts and a tax information and impact note. This assessment will be consistent with the costings of this policy by the Office for Budget Responsibility. In making this assessment, the Government will consider pass-through of VAT to school fees as well as the likely elasticity of demand.

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