Sir Alec Shelbrooke

Sir Alec Shelbrooke

Conservative — Wetherby and Easingwold

Speaking in the House of Commons on 8 October 2024

Debate

Independent Schools: VAT and Business Rates Exemptions

Contribution

It is a pleasure to serve under your chairmanship, Dame Caroline. The Government are about to realise the reality of governance over manifesto ideology. Fundamentally, this policy will remove the ability of people to send their children to local primary schools as places get filled by those who currently can just about afford to use private schools. As there is limited time, I have a series of questions that I would like to put to the Minister. To be fair to him, this is not his Department—education Ministers are running away from their policy—so I doubt he will be able to answer them today, but perhaps he can take them away. Some of them have been covered, but I think it is important to get them on the record. Will the Minister confirm whether a low-income family whose child is in receipt of a bursary would be liable for VAT on the total school fees? Would a staff member in receipt of an employee discount on fees also be liable? With boarding schools already at 86% capacity and some already withdrawing from the market, will the continuity of education allowance for military families still be able to house the 4,200 who currently use it? Will arts schools be exempt? If so, and we are starting to exempt schools, is this even legal? If we do not exempt art schools, that means people who have the talent to go will have to be in the vicinity of the school or travel. That is going to withdraw a huge amount of opportunity from those in the arts sector. What mitigation is there going to be for the financial planning of international pupils? They have a choice of a global market. As my hon. Friend the Member for Bromsgrove (Bradley Thomas) mentioned, this is a £2.1 billion export market. Again, is it going to be legal to exempt certain schools, such as those involved with SEND provision? What impact will there be on council budgets? There is an issue for those of us who represent vast rural communities: if children are taken out of the private sector and put into the state sector, the state will to have to fund the transport for those children to go to school. Upon whose budget will that fall? Fundamentally —there is evidence of this from every council—if primary schools are already close to capacity, will the state pay to put those children into private places? Will parents then be taxed on that as an in-kind benefit or will the law be retrospectively changed—which, of course, would suit the Prime Minister and a lot of people with free wardrobes?

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