PARLIAMENTARY DEBATE
VAT: Independent Schools - 8 October 2024 (Commons/Commons Chamber)

Debate Detail

Contributions from Joy Morrissey, are highlighted with a yellow border.
Con
  12:40:00
Damian Hinds
East Hampshire
I beg to move,

That this House regrets that the Government has decided to impose VAT on independent school fees; believes that educational provision should not be taxed; regrets that the Government is rushing to implement this change part-way through an academic year; calls on the Government to exempt from the VAT charge fees paid in respect of children of military and diplomatic families, all children who have an Education, Health and Care Plan, or who are in the process of applying for one, all children on SEN support, Centres for Advanced Training and schools in the Music and Dance Scheme, all children at schools whose fees are lower than the average per capita funding for a state school place, and children at religious schools of denominations for whom there is no faith school provision in the state sector; further calls on the Government to postpone imposition of the VAT charge for schools in areas where state schools in the relevant key stage are already on average over 95% full; also calls on the Government to postpone imposition of the VAT charge for fees paid in respect of children who have started a public examination course, to September 2025 for pupils currently in Year 11 or Year 13, and to September 2026 for pupils currently in Year 10 or Year 12; and calls on the Government to publish a full impact assessment of the effects of this policy on independent schools and the state sector ahead of the Budget.

There are 85 days to go until the introduction of Labour’s education tax, and we are still in the dark. Many questions remain for parents, for children and for schools—when I say “schools”, that is both independent schools and state schools—and also for the local authorities that are responsible for special educational needs provision and generally for ensuring that everyone can get a place at school.

This is a huge change, which is being made in a headlong rush. There are big worries about children with special educational needs or a disability, about military families, about the talented musicians and dancers of tomorrow, about small religious faiths and about the widest impact of all—that on state schools, because this means disruption, bigger classes, budget overstretch, and ultimately, parents being less likely to get their preferred choice of school. Even those who do not necessarily object to this in principle are saying it cannot be pushed through this fast, from the Chartered Institute of Taxation to the NASUWT.

It is a long-standing principle that you do not put tax on learning—a principle all but universally observed around the world. On the Conservative Benches we believe in that principle and we believe in the sanctity of parental choice. The vast majority of children, of course, go to state-funded schools, and we defend the right of parents to choose those schools and defend the diversity of those schools. A small number of parents choose home schooling; we defend that right too. And yes, some choose the independent sector.

Parents are the first educators of their children. The state sets an expectation of a suitable education for all children, and beyond that, parents should make the choice of what is best for their child. Parents might decide to opt out of state education for any one, or many, of several reasons—quite often simply because they have found the school that they believe is right for their child, and where their child is most happy.
DUP
  12:40:00
Jim Shannon
Strangford
rose
Con
  12:40:00
Graham Stuart
Beverley and Holderness
rose
  12:40:00
Damian Hinds
I am spoilt for choice. I give way to my right hon. Friend.
  12:40:00
Graham Stuart
During the election, in the Monks Walk pub, I met a constituent who has stayed in his small home and has one car for the family, because they decided their bullied daughter needed to go to another school. They have sacrificed, with the support of wider family, so that that child with special educational needs can go to a private school. It is children and families like that who will be the victims of this spiteful policy. Does my right hon. Friend agree?
Damian Hinds
My right hon. Friend is right to identify that many parents make great personal financial sacrifices to do what they believe is best for their children. Some parents whose children go to independent school are rich, and some are definitely not. I include in that latter bracket most of the parents sending their children, for example, to small religious schools in Hackney, Salford or Birmingham. Very many more are in the middle, including many professionals working in our public services.
Jim Shannon
The shadow Minister has rightly underlined the issue for those who send their children to faith schools or independent schools. Many constituents in Strangford have told me that they have saved and persevered, have not been on holidays, have not bought a second car, or have even continued to use their old car longer than they should, so that those moneys can go into their children’s education. Does he, like me, find it impossible to understand how it can be that it is the Labour party—the party of conscience, I would say—that has let us down on this issue and is going to penalise people who are hard-pressed to find education for their children?
Damian Hinds
The hon. Gentleman is right about the financial sacrifices some make. Let us be clear: it is possible to tax wealthier people or people with a higher income more, but the Government should be honest about it. The way to do so is through the income tax system, not through a choice that people make to have their child in an independent school. The hon. Gentleman did not mention this, but I might add that because the situation in Northern Ireland is different from that in England—by the way, the situation in Scotland is different, too—the Government need to think carefully about how the policy is applied throughout the whole United Kingdom, because VAT is a reserved matter, and about what it means for the hon. Gentleman’s constituents and others across these islands.
Lab
Mike Amesbury
Runcorn and Helsby
My late mother and dad used to run a pub, and they paid their taxes. It was a private business that made a profit. Why should these businesses not pay their taxes? Why should they not pay what is owed?
Damian Hinds
This is a completely different situation. Independent schools do pay tax.
Mike Amesbury
indicated dissent.
Damian Hinds
No, independent schools do pay tax on supplies. No tax is charged on education, whether in an independent school or in other settings, and that is a very long-standing principle.

Let me clear up one very important definitional point, which I ask colleagues to reflect on. There is no tax break involved. It would be a tax break if a person who had a child at an independent school and was not taking a place at a state school were charged less tax as a result. That does not happen in the United Kingdom. Everybody contributes to state sector education, whether or not they take up a place.

The principle of no tax on learning is a fast one, and once we loosen it, we do not know where we will go. Where might the Treasury look next? Private nurseries, perhaps? Music lessons? Private tutoring? What is the philosophical difference between independent school education and private tutoring?
Con
Alicia Kearns
Rutland and Stamford
Let me make a point to demonstrate how rushed and ill thought through this policy is. My understanding is that if a child in a nursery has turned five but the other children in the class have not, all the parents in that nursery year will have to pay VAT on their child’s nursery fees. That is how badly this has been thought through.
  12:50:06
Damian Hinds
My hon. Friend is right. That comes from the rushed nature of the legislation. The sloppy drafting means that children who are not of school age get dragged into this tax if they happen to be in the same room as children who are, and there are concerns about what might follow in other borderline cases.

The Government claim that the policy is about revenue, not politics, but having read the Secretary of State’s twitterings, I think hon. Members could be forgiven for mistaking the motivation. It is entirely spurious, for multiple reasons, to link this tax to 6,500 teachers, mental health support or anything else. The money will go into general Exchequer receipts, and anyway, 6,500 teachers is not that many in the scheme of things, given the 468,000 there are now. That is a compound growth rate of 0.3% over five years—and, by the way, a lot fewer teachers than we recruited in the last five years. Mental health support teams are already being rolled out, and they cover primary schools as well as secondary schools. It is not clear what the difference is in the new Government’s policy on mental health support, other than that it will not include primary schools.

To the extent that the VAT revenue could be hypothecated, it looks a lot more like that revenue would reduce cuts to education resourcing, rather than increasing it. If the policy is about revenue, not politics, the Government could easily commit to one simple thing today. They are confident, they tell us, that the policy will raise a large sum of money and not create large costs. Will they commit to measuring and reporting back on that, and if it turns out, against expectations, that they were wrong, will they reverse it?
Con
  12:50:23
Dame Harriett Baldwin
West Worcestershire
I thank my right hon. Friend, who is giving an excellent introduction to the debate. Is it his understanding that our military personnel, and those serving in our diplomatic service, will also be hit by this tax?
  12:50:23
Damian Hinds
My hon. Friend is absolutely right. As things stand, those who get the continuity of education allowance would be hit, in part, by the tax.
Con
Dr Andrew Murrison
South West Wiltshire
In the calculus that my right hon. Friend rightly asks the Government to publish, can we include the foreign receipts that the independent sector generates? The roll of a school in my constituency includes a very large number of children from overseas whose parents pay directly into the UK economy. That school is now under threat. The loss of that revenue will be substantial, and the local impact huge. May we have that factored in, given that, so far, we have not seen any figures on the loss of money and reputation that the closure of many such schools will entail?
  12:51:19
Damian Hinds
My right hon. Friend is correct: substantial export earnings come from the sector, and from a globally mobile set of families. But I would go further; in addition to the direct export earnings effect, there is also an indirect effect. For companies deciding where to site their European headquarters, English education is a big factor. That is partly because of our brilliant state schools, which have improved so much over the past 14 years, but the availability of independent schools is also a factor.
Con
Kit Malthouse
North West Hampshire
The shadow Secretary of State makes a strong point about the sanctity of zero-rating VAT for education. I am concerned that children’s clothes, which are currently exempt from VAT, may be the next target. Notwithstanding the impact that the change to VAT will have on individual families, does he agree that private and prep schools—my constituency has five—are enormous employers of people involved in building maintenance, such as electricians and plumbers, and that the impact on the wider economy could well be profound?
Mr Speaker
Order. I remind Members to look towards the Chair when they are speaking, or what they say will not be picked up by the mics; I then struggle to hear them. I know that the Minister was struggling as well. If Members keep the chatter down, it will help us both.
  12:53:24
Damian Hinds
My right hon. Friend is of course correct about the economic contribution that schools make locally and the large numbers of people they employ. That point was also made by NASUWT, which is worried about teachers being inadvertently pushed out of the profession if redundancies are made mid-way through the school year.
Con
Mims Davies
East Grinstead and Uckfield
My youngsters have had a mix of excellent learning, including in nursery and in state education, as have youngsters in many families. I have a personal and constituency interest in wanting all education settings to thrive, so I agree with my right hon. Friend. The economic and employment impact of this new tax will be devastating for bus drivers and maintenance teams. It will impact on so many livelihoods and communities. The people picking up the unknown impact will be in the state sector. The policy will just deliver more of the unknown.
  12:54:04
Damian Hinds
My hon. Friend makes a very good point.
Con
Paul Holmes
Hamble Valley
rose—
  12:54:04
Damian Hinds
I will take one more intervention before making progress, so as not to try your patience too much, Mr Speaker.
Mr Speaker
It is not that my patience is being tested, but I do worry when shadow Secretaries of States cover a subject at length. I understand, but we need to get on, because lots of Back Benchers are desperate to get in. In fact, we have a very eager Opposition Whip coming in now.
Paul Holmes
You will find out, Mr Speaker, that I will not test your patience. I want to take my right hon. Friend back to the point he made about the Education Secretary’s tweet, which I thought was disgraceful. [Hon. Members: “Where is she?”] The divisive language behind that tweet was a disgrace, given the many independent schools that work hard and play by the rules. Does my right hon. Friend agree that the embossed notepaper that the Secretary of State focused on is sent to many children who are being sponsored through bursaries or scholarships, and whose parents work hard to give their children the best education? The Education Secretary should apologise for that disgraceful tweet.
  12:54:04
Damian Hinds
I am grateful to my hon. Friend, who, as ever, makes important points. I too am disappointed that the Education Secretary is not with us for this important debate. I will make progress, Mr Speaker, because I do not want to go on longer than I should.

To be clear, we want to talk first and foremost not about revenue, but about education, schools and children—all children. [Interruption.] No, I have been talking about schools and children throughout. If the Government insist on ploughing on with this divisive policy, they must at least exempt certain groups of children for whom it would be especially unjust or counterproductive to impose this tax. Surely, schools that charge the same as, or even less than, the average cost of a school place were not in the Government’s sights when they devised this scheme. There are small religious groups that have no state sector provision for their denomination. Why should they be disadvantaged? The continuity of education allowance exists expressly to support families who are serving our nation in the armed forces. Surely they should be protected.

The Government acknowledge the role of centres of advanced training and performing arts schools that come under the music and dance scheme, because, again, there is no equivalent specialist schooling available in the state sector. Then there are the many children who receive special educational needs support, including those with an education, health and care plan, whether or not they are at the school named in the plan, and those children who are applying for a plan.
Con
Joy Morrissey
Beaconsfield
rose—
  12:54:04
Damian Hinds
I ask my hon. Friend to forgive me, as I must make progress.

As for children whose parents are priced out of a school, or face its closure, disruption to learning can be difficult at any time, but it is even more problematic when pupils have started a public examination course. Their next school might not even offer the subjects that they were taking, or the exams might not be marked by the same exam board. We need to think about those children. The tax levy should be postponed until pupils who are now in years 10 or 11, or in the lower and upper sixth form, have finished their exams—until 2025 or 2026.

The widest impact of all will be felt by state schools. Ministers have said repeatedly that there is no problem because there are plenty of spaces in state schools. We have repeatedly pointed out that that is of no help at all if those places are in the wrong places or the wrong year groups. They need to be where and for whom they are required.
Ind
Iqbal Mohamed
Dewsbury and Batley
State schools in my constituency are bursting at the seams. There are no spare spaces to move into for the more than 1,000 children being educated in independent schools there. The fees charged by those independent schools are a quarter to half of the cost of state school provision per pupil.
  12:54:04
Damian Hinds
I am grateful to the hon. Gentleman.
Joy Morrissey
In Buckinghamshire, we do not have the places. We have a lot of children in special education needs and disabilities schools, faith schools and other private schools. We cannot cope with the capacity loss. We have parents who are sacrificing everything to send their child to a SEND school. There is no provision in the county for them. The policy will result in a crisis of transportation and places, and children will suffer as a result.
  12:59:20
Damian Hinds
I am grateful to both my hon. Friend and the hon. Member for Dewsbury and Batley (Iqbal Mohamed) for their interventions. Indeed, there are many places, particularly at secondary school level, where there are insufficient spaces available to accommodate a significant minority being displaced from independent schools—places such as Bristol and Bedford, Salford and Richmond, Worcester and Wycombe, and Bury North and Bolton North East.

Let us be clear: local authorities have a duty to find spaces for children. They take that duty very seriously, and a number of them are considerably worried about what may happen. In-year admissions can be especially complicated in any case: they can involve not only governors but the fair access protocol panel and, ultimately, a Secretary of State direction, all of which can add up to months out of school. Creating additional physical space in schools obviously takes time, and building new schools takes longer still. Time is needed to adjust, which is why our motion further calls on the Government to

“postpone imposition of the VAT charge for schools in areas where state schools in the relevant key stage are already on average”

almost full.

This Government barely have their feet under the table, and already they are a Government in chaos. That chaos is exemplified by this destructive, disruptive and divisive education tax that will interrupt learning; create place demand where it cannot be accommodated; put further strain on the SEND system; hit specific groups that we ought to be trying to protect; likely generate much lower revenue than anticipated; and quite possibly even end up as a net cost to the public purse. In their headlong rush to make a political statement, the Government appear simply to not have thought through the consequences. We call on them now to announce immediately that they are abandoning the unrealistic January implementation date, to publish a proper impact assessment, and then to entirely rethink this entirely counterproductive tax.
  13:03:05
James Murray
The Exchequer Secretary to the Treasury
This Government were elected to break down barriers to opportunity. We are determined to fulfil the aspiration of every parent in our country to get the best education for their children. We are committed to doing so by improving state schools and making sure that every child has access to a high-quality education. We will start to make this happen by expanding early years childcare for all by opening 3,000 new nurseries across England. We will recruit 6,500 new teachers, alongside improving teacher and headteacher training, and we will roll out further mental health support to schools and colleges in England. Those improvements to the state education system will begin our work to make sure every parent’s aspiration for their children can be fulfilled.

We want to get on with these important changes right away, and to do so, they must be paid for. That is why to help fund improvements to our state schools, we have made the tough but necessary decision to end tax breaks for private schools. In the July statement, the Government announced that as of 1 January 2025, all education services and vocational training provided for a charge by a private school in the UK will be subject to VAT at the standard rate of 20%.
  13:05:08
Graham Stuart
I know the Minister to be an honourable man, so will he take this opportunity to apologise to the House in the absence of the Secretary of State for Education for the malicious and spiteful tweet that she put out this weekend? That tweet was ill-advised, even if one believes that this policy is the right thing to do.
  13:04:02
James Murray
Neither I nor any of my colleagues will make any apology for wanting to improve state education across this country to make sure that the aspiration of every parent in our country to get the best possible education for their children can be fulfilled. That is why we have announced that any fees paid from the date of the July statement, 29 July, relating to the term starting in January 2025 onward will be subject to VAT.
Lab
  13:04:18
Shaun Davies
Telford
This package of support will put thousands of teachers back into school classrooms in Telford and across the country. Has my hon. Friend received any representation to say that if this change did not take place, those plans by this Government—who were elected by the people of this country—would go ahead by any other means?
  13:04:44
James Murray
My hon. Friend makes an important point about the reason why we have taken the tough decision to end tax breaks for private schools. It is to fund our education priorities, because we know that the way to improve opportunities for people right across this country is to make sure that our state schools can provide the best-quality education for all children.
Con
  13:05:14
Priti Patel
Witham
The Minister was in a similar debate this morning, in which he heard a range of views. He is a Treasury Minister, not an Education Minister or the Education Secretary; will he commit to publishing an impact assessment on the overall cost of this policy? There were parents in the Gallery listening to the debate this morning, and it is clear that there will be a legal challenge to this policy. Will the Treasury also publish the potential cost of that legal challenge and the bill that his Department will be footing in order to meet it?
  13:05:52
James Murray
I thank the right hon. Member for her contribution. First, in terms of an impact assessment, while developing these policies, the Government have carefully considered the impact they will have on pupils and their families across the state and private sectors, as well as the impact they will have on state and private schools. In addition to having reviewed analysis published by third parties such as the Institute for Fiscal Studies, the Government have conducted their own analysis of the likely impacts of these policies, which draws on a range of sources.
  13:05:52
Graham Stuart
On a point of order, Mr Speaker.
  13:05:52
James Murray
I am not going to give way, because I am responding to the right hon. Member for Witham (Priti Patel).
  13:06:02
Mr Speaker
Order. It is a point of order, so you do give way, unfortunately.
Graham Stuart
I am grateful to you, Mr Speaker. Could you give any advice to me on how we can ensure that the impact assessment that must have been conducted on this policy is shared with the House? It is a fundamental—
  13:06:18
Mr Speaker
Order. As you know, that is not a point of order—do not waste my time. Carry on, Minister.
  13:06:24
James Murray
As I was saying to the right hon. Member for Witham, the Government will publish a tax information and impact note on the VAT policy change at the Budget, once the independent Office for Budget Responsibility has scrutinised and certified the costing of the final policy.
  13:06:29
Mims Davies
Will the Minister give way?
  13:06:42
James Murray
I am still replying to the hon. Member’s right hon. Friend. [Interruption.] Maybe Conservative Members could sort this out on their side of the House before they come into the Chamber, but I will continue replying to the right hon. Member for Witham.

Turning to the legal cases, the Government have considered the policy’s interaction with human rights law and are confident that it is compatible with the UK’s obligations under the Human Rights Act. I hope that addresses the right hon. Member’s concerns.
  13:06:56
Mims Davies
Will the Minister give way?
  13:06:57
James Murray
I will.
  13:07:21
Mims Davies
I thank the Minister for kindly giving way. This policy will have an economic impact in each and every constituency: on librarians, on maintenance people and on those who work in labs, in catering and as minibus drivers—everything that is predicated on schools such as the ones we are discussing. Will the impact assessment and the Treasury look at the wider implications for employment?
James Murray
As the hon. Member knows, there are established processes for developing tax information and impact notes. This one will be developed in line with the OBR costing in the normal way and published alongside the Budget, so she will see all the information.
James Murray
I have given way quite a lot, so I am going to make a bit of progress.

Alongside the announcements about VAT, the Government announced in July that private schools in England with charitable status would lose their eligibility for business rates charitable relief from April 2025, subject to parliamentary passage of the legislation. Those changes were set out in a technical note that was published online alongside draft VAT legislation, which together formed a technical consultation. As part of that consultation, the Government—both at official and ministerial level—have engaged with a broad range of stakeholders, including the devolved Governments.

We have listened carefully to the points that people have raised with us. We recognise that while this policy will raise revenue to help support improvements in the state education sector, it may lead to increased costs for some parents and carers whose children are in the private education system. However, let me be clear: while private schools will now be required to charge VAT on the education services and vocational training they provide, we expect that most private schools will be able to absorb a significant portion of this new VAT charge and keep fee increases affordable for most parents. They will be able to make efficiencies and recover the VAT they incur on the things they buy. Those recovered costs can be used to offset increases for fee payers. We are already seeing that some schools have committed to absorbing the VAT liability entirely, while others are choosing to cap fee increases at 5% or 10% to keep fees as low as possible for parents.
Con
  13:09:52
Dr Ben Spencer
Runnymede and Weybridge
I had a pop at getting the Minister to give way during the debate this morning, and I appreciate his doing so now. I love the irony of what he is saying, which is, “We need to do this to raise all this money, yet it isn’t actually going to raise all that much money because it can be reclaimed.” On the impact assessment, it is really interesting that one line in the consultation document that went out this summer says:

“The government understands that moving schools can be challenging.”

How many of his own constituents have contacted him to say they will have to move schools as a result of this policy, and how do we measure the damage that moving schools is going to cause for so many children in our constituencies?
  13:10:30
James Murray
I have been clear: the Government recognise that some pupils may subsequently move into the state education sector as a result of these policies. However, as is set out in a technical note—and I take it from the hon. Gentleman’s comment that he has read it—the

“number of pupils who may switch schools as a result of these changes represent a very small proportion of overall pupil numbers in the state sector. The government is therefore confident that the state sector will be able to accommodate any additional pupils”

whom this policy will cause to move.
James Murray
I will make a bit of progress, because I have been quite generous in giving way so far.

I want to address some of the questions that the shadow Secretary of State asked in his speech, particularly about why we are introducing this policy from 1 January 2025. The reason we are doing so is simple: we want to raise the funding we need as soon as possible to deliver our education priorities for state schools across the country. Importantly, a January 2025 start date means that schools and parents will have had five months to prepare for the VAT change, and His Majesty’s Revenue and Customs stands ready to make sure schools are supported in delivering it.
Con
  13:09:59
Dr Luke Evans
Hinckley and Bosworth
Will the Minister give way?
  13:09:59
James Murray
I am going to make some progress.

HMRC will put in place a number of measures to ensure that all private schools can be registered ahead of 1 January, including publishing bespoke guidance on gov.uk ahead of 30 October, updating registration systems and putting additional resource in place to help process applications.
James Murray
I am going to make some progress, because I have given way quite a lot so far.

Ahead of this policy being implemented, the Government have carefully considered the impact that these changes will have on pupils and their families across both the state and private sectors, as well as the impact they will have on state and private schools. The Government’s costing of these policies is currently being scrutinised by the independent Office for Budget Responsibility. The Chancellor will confirm our approach to these measures at the Budget, when we will set out our assessment of the expected impacts of this change in the normal way.

We recognise that, as hon. Members have said, these changes may lead to some pupils moving into the state education sector. While the impact of this policy is being fully considered, we know that projections by the Institute for Fiscal Studies indicate that the number of pupils who may switch schools as a result of these changes is likely to represent a very small proportion of overall pupil numbers in the state sector—less than 0.5%—with any displacement expected to take place over several years.
Dr Evans
I am very grateful to the Minister for giving way. This is about children—and even the Prime Minister made a choice to better the education of his children—so putting this in place in January, halfway through a year, is going to have a significant emotional impact on families and children. That is why it should be delayed. If it is good enough for the Prime Minister to make such choices for himself, why cannot this Government make choices for the rest of the nation, and support the most impacted families and children?
James Murray
I have made clear the reason why we are proceeding with this policy to a January 2025 date, which is that we want to raise the money as soon as possible to invest in our improvements to state education. There will have been five months for parents and schools to prepare for the change.
Con
  13:09:59
Simon Hoare
North Dorset
Will the Minister give way on that point?
  13:09:59
James Murray
I am still responding to the hon. Member for Hinckley and Bosworth (Dr Evans), so please let me come back to that point. HMRC is putting in place bespoke guidance, and it is standing by to make sure that schools are properly registered for the change. All the evidence we have seen from the IFS and so on suggests that the impact on the state sector will be very small, which means that it will not have a material effect on children’s education.
  13:09:59
James Murray
I am going to make some progress.

To pick up the point made by the hon. Member for Hinckley and Bosworth, I am not denying that some pupils may have to move into the state sector, but we expect much of this to take place at natural transition points, such as when a child moves from primary to secondary school, or at the beginning of their GCSE or A-level years. As I have said, the IFS expects any displacement to take place over several years. We are confident that the state sector will be able to accommodate any additional pupils, and that these policies will not have a significant impact on the state education system as a whole.
  13:09:59
James Murray
I am going to make some progress. I am sorry, but I have taken a lot of interventions.

I would like to address the issue of special educational needs. It is a point that many hon. Members have raised, and I know that some parents are concerned about the impact of this policy on pupils in private schools with special educational needs. Let me start by saying that we have considered this element of the policy very carefully. Our proposed policy makes sure that pupils will not be impacted where they have acute additional needs and an education, health and care plan in England, or its equivalent in other nations, specifies that these can be met only in a private school.
LD
Marie Goldman
Chelmsford
I thank the Minister for giving way on that specific point, because he is relying on those schools still being open because other parents have not left. How will he address the situation in which parents of children needing that extra support rely on such schools for their special educational needs, yet those schools have closed because they cannot afford to stay open any longer?
James Murray
We will take a community-wide approach that sees improved SEND provision in mainstream state schools, as well as ensuring that state special schools cater for those with the most complex needs.
Lab
Jen Craft
Thurrock
As a parent of a disabled child, the issue of SEND education in this country is very important to me, as it is to a number of my friends and acquaintances. Let us be clear that the SEND system in this country is broken, and it was the actions of the previous Government that left us with parents being desperate and having to search for alternatives to mainstream education for their children. The vast majority of my constituents who find themselves without suitable education placements for their children, for reasons of disability or educational needs, are unable to afford to send their children to a private school. Does the Minister agree with me that perpetuating a system of inequality is not the solution for our broken SEND system?
James Murray
I thank my hon. Friend for her comments. She is absolutely right to say that we need to improve SEND provision for all children in this country in a financially sustainable way, and she speaks with great experience.
  13:09:59
James Murray
Let me make a bit of progress.

We want to improve state schools across this country so that when people have children with special educational needs, they never need to send them to a private school because the provision in state schools is better. That is the crucial point behind our approach, which my hon. Friend the Member for Thurrock (Jen Craft) was right to highlight.
  13:09:59
James Murray
I am going to make a bit of progress, because I have been quite generous in giving way so far.

I was talking about when EHCPs in England, or their equivalents in other nations, specify that a child’s education can be met only in a private school. In cases where pupils’ needs can be met only in a specified private school, local authorities will fund their places and be able to reclaim the VAT. Similarly on business rates, the Government are developing an approach to address the potential impact of these changes when private school provision has been specified through an EHCP. More widely, as we have just been addressing, we as a Government are committed to transforming the system for supporting children and young people with SEND in all schools. We need to deliver better outcomes in a financially sustainable way.
LD
  13:09:59
Mr Joshua Reynolds
Maidenhead
Will the Minister give way?
James Murray
I am going to make a bit of progress.

To address some other points raised in this debate, we know that a small number of diplomatic officials and service personnel are posted abroad for extended periods. In such circumstances, the Foreign, Commonwealth and Development Office and the Ministry of Defence provide the continuity of education allowance to ensure that this does not interfere with their children’s education. I can give the reassurance today that the Government will monitor closely the impact of these policy changes on affected diplomatic and military families, with any changes to the scheme being considered as—[Interruption.]
Mr Speaker
Order. I am sure the Lib Dems do not need coaching.
  13:19:41
James Murray
I am not quite sure what happened there, but I will carry on. I was making an important point, which is that the Government will monitor closely the impact of our policy changes on affected diplomatic and military families, with any changes to the scheme being considered as part of the ongoing spending review.
  13:19:41
Alicia Kearns
Will the hon. Gentleman give way on that point?
James Murray
I will make a bit of progress. In our consultation on the technical detail of this policy, we have been engaging widely and in depth, and the views of MPs are an important part of that. As I said earlier, it has been a tough but necessary decision to end tax breaks for private schools. We believe it is the right decision, and one we need to implement as soon as possible to help raise the funding that we need to deliver our priorities for state education in this country. We are determined to make sure that education, which is available for all, is of the highest possible quality, because that is how we ensure that we meet the aspiration of every parent to get the best possible education for their children.
Mr Speaker
I call the Liberal Democrat spokesperson.
LD
  13:23:25
Munira Wilson
Twickenham
Thank you very much, Mr Speaker, and I am grateful for the Health Secretary’s advice—[Interruption.] I did not need coaching—you will hear that soon enough.

When I heard that today’s debate would be about schools, I thought, thank goodness, we are finally going to give the crisis in our classrooms the attention it deserves and have a long, overdue serious debate about the squeeze on school budgets, the shortage of specialist teachers, the dangerous state of many school buildings, the crisis in special educational needs provision, or the mental health of children, but no. In fairness, expecting the Conservative party suddenly to start prioritising those issues in opposition, after it spent years neglecting them in government, would be foolishly optimistic. Nevertheless, I hope that we will have the chance to debate them properly soon.

A priority for the Liberal Democrats is ensuring that every child, no matter their background, gets the support and attention that they need at school, so that they leave with the skills, confidence and resilience to be happy and successful. That means the Government investing in education as we invest in other vital infrastructure. In fact, Liberal Democrats believe that education is the single best investment we can make in our children’s potential and our country’s future. That is why in our manifesto we set out a number of ways to make that investment. We argued that putting a dedicated qualified mental health professional in every primary and secondary school was important. We argued for an increase in school and college funding per pupil, above the rate of inflation every year. We argued for school meals to be extended to all children in poverty, and for a tutoring guarantee for every disadvantaged pupil who needs extra support.

That package of investment in our state schools would improve and boost the performance and opportunities for every child, as well as closing the attainment gap that limits the life chances of too many children from disadvantaged backgrounds. Crucially, we set out in detail how it could all be paid for, including by increasing the tax on social media firms who have done so much to worsen the mental health crisis in our schools. That is a much bolder package of investment than the one this Government have set out so far, and it is paid for fairly, not by taxing parents’ own investment in their children’s education. I think the shadow Education Secretary was advocating raising income tax to invest in education—[Interruption.]
  13:23:26
Damian Hinds
Even for a Lib Dem that is pushing it.
Munira Wilson
The shadow Education Secretary was suggesting to the Minister that that is where he could find some money—[Interruption.]
Mr Speaker
Order. If Members wish to intervene, they should do it properly. Let us not have side banter, as the rest of the Chamber needs to get in as well.
  13:26:01
Munira Wilson
Thank you, Mr Speaker. As we have a Treasury Minister rather than an Education Minister opening the debate for the Government, I say gently that he should look at what the Liberal Democrats proposed on reforming capital gains tax as a way to fund some of the important investment that we need in education, rather than looking at taxing parents’ choices to invest in their children’s education.

The Government’s policy would undermine two important principles. First, education should simply not be taxed. As we have heard, all education provided by an eligible body, including university education, music lessons, and tutoring are exempt from VAT, and VAT should not be imposed on any of those things because education is fundamentally a public good. Secondly, parents have the right to choose what education setting is best for their child. As Liberals we have always championed choice, and believe that nothing should get in the way of those important choices. Of course we want to get to a point where every parent can choose a local state school that meets their child’s needs and gives them the best possible start in life, and opportunities to flourish. But let us be honest with ourselves: that is not the reality facing many parents today, especially when their children have special educational needs.

Liberal Democrats have many times raised the crisis in SEND provision. Conservative cuts to school and council budgets mean that many parents and carers simply cannot get their children the support they deserve. The Minister talked a moment ago about sorting out state-school SEND provision, so that no parent with a child with SEND would need to send their child to a private school, but does he recognise that in order to sort out and fix our broken SEND system we will need not millions but billions of pounds? I am not entirely sure that the Chancellor will be giving that kind of money to the Department for Education.
LD
Jess Brown-Fuller
Chichester
In my constituency there are three independent schools, one of which is a choir school. In one of those independent schools there are 29 children with diagnosed SEND, and only one with an EHCP with that as the named school. Does my hon. Friend agree that given the crisis in attaining EHCPs, especially in West Sussex county council, which is ranked fifth worst in the country and where only 3.6% of EHCPs are given within the statutory framework of 20 weeks, there needs to be more support in dealing with the deluge that this policy will cause county councils—
  13:26:53
Mr Speaker
Order. May I suggest that interventions are meant to be short and not a speech, especially if you are on the list? People are going to go down to a six-minute time limit shortly. Please, think of others.
  13:27:30
Munira Wilson
I thank my hon. Friend for that intervention. She is absolutely right to say that because only children with EHCPs will be exempt from the VAT charge, there will be the unintended consequence of adding yet further pressure to what is already a broken system. Indeed, a parent in my constituency has written to me along those lines to say that they now feel that they will have to go through the application process. So many parents and carers are forced to navigate a postcode lottery and wait months, as my hon. Friend said, to get the support that their children are entitled to.
Lab
Dr Rupa Huq
Ealing Central and Acton
The hon. Lady is a London MP like me, and part of the problem is that the term “private schools” covers such a wide category and such a multitude of sins. Does she agree that this is also quite a London issue? I have an unusually large number of these schools, with 14 in my boundary—there were 15 a year ago but one has since closed. I know my hon. Friends on the Front Bench would be happy to meet me so I can feed in the comments that I hear at the advice surgery and when door knocking, which would take too long to recount right now.
  13:28:06
Munira Wilson
I thank the hon. Lady for her intervention but I would gently say two things. First, I would not describe private schools as covering a “multitude of sins”. This is also not just a London problem. My hon. Friend the Member for Edinburgh West (Christine Jardine) who represents an Edinburgh constituency says that she has the highest number of private schools in the country. It is a nationwide problem, and the consequences have simply not been thought through.

Let me return to my point about special educational needs and disability. For many families, local state schools simply are not equipped to give those children the support they deserve. That is why, as we have heard, there are almost 100,000 children in independent schools who have special educational needs and disabilities but not an EHCP. That is tens of thousands of parents, not the super-wealthy, but carers, who are working hard and making tough choices so that their children can have the nurturing education they need.
Lab
  13:30:11
Shaun Davies
Telford
For 14 years—the first five under coalition Government—state schools in Telford and across the country were told to be efficient, more creative and innovative to save money as budgets were frozen and then cut. Why can private schools not also be as efficient and creative to cut costs in their operations? It seems it is one rule for one set of parents’ children, and another rule for the vast majority of children.
  13:30:09
Munira Wilson
I point out for a start that when the Liberal Democrats were in government, school budgets increased in real terms, and we introduced the pupil premium to help the most disadvantaged children. When the Tories were left to their own devices, they slashed budgets, and the pupil premium has been devalued over the years.
LD
Zöe Franklin
Guildford
I just want to return briefly to the topic of EHCPs. We all know that there is a crisis in special educational needs. In my own constituency, a quarter of pupils attend an independent school. At least 700 or more students do not have an EHCP. Those parents who are paying for places at private schools desperately want to get support for their children. Does my hon. Friend agree that it is crucial, if the Government insist on pursuing an ill thought-through policy that impacts on children with special educational needs, that all children with diagnosed educational needs—with or without an EHCP—and those eligible for disability allowance should be exempt from that VAT?
  13:38:20
Munira Wilson
I would rather the Government do not go through with this policy at all and drop it, but if they insist on pressing ahead with it, all children with special educational needs, whether or not they are on the SEND register—they can be identified in other ways—should be exempted.

I will share a story from a constituent who contacted me recently. They have two children, both of whom have complex learning needs and have struggled to thrive in their local state school. After moving to a private school that was better able to support them, they are finally making progress and most importantly, to quote the parent, they

“don’t feel like they are failing”.

The children’s family has made huge financial sacrifices to give them this education, including remortgaging their home and cashing in pension plans. As this policy is set to be introduced in the middle of the school year, this family and thousands of others have little time to prepare or save. It will be disruptive for children who have already suffered enough disruption to their education in recent years. This parent who contacted me told me:

“We are terrified of the prospect of having to uproot our children for a second time because we can’t see a way to afford this rise.”

Labour’s rushed-through and ill thought-through plans will snatch opportunities away from thousands of children just like my constituents.
Jen Craft
You reflect on there being an exemption only for children who have EHCPs, and you mentioned that there should be an exemption for children who do not have an EHCP based on SEN or disability. My question is: how do you define that? There is huge scope for private schools to say that they are SEND specialists. There is not a measure of whether that is the case. How do you define those who have SEND or those with additional needs, beyond the scope of an EHCP?
Mr Speaker
Order. May I gently say to the hon. Member that when you say “you”, it is as though I have said it? I want to reassure you that I am not involved in any of this.
  13:33:17
Munira Wilson
Mr Speaker, I would not dare to second-guess your position on this issue. The best way to deal with this issue is to drop the policy entirely, but if we are to exempt children with special educational needs, a good place to start is the SEND register. Just yesterday, I was discussing with one of the headteachers in my constituency the number of children on their SEND register and how they go about identifying them. Schools already do that in the state sector to support children. We could apply those same rules and regulations in the private sector, and those children should be exempted. However, I would rather this policy was just dropped altogether.

For all these reasons, the Liberal Democrats do not support ending the VAT exemption for independent schools. Instead, we want to see a better partnership between independent schools and local state schools. Many already do that, and I am not just talking about a few bursaries here and free use of a pool there; I am talking about genuine partnership working and the sort of brilliant collaboration that I have seen in schools in my constituency, where Hampton school and Lady Eleanor Holles school share staff time with Reach academy in Feltham. They have also been mentoring and coaching pupils for medical school and other university places, and the results have been phenomenal in a disadvantaged part of west London, where typically students were not going on to further or higher education. That partnership has borne immense fruit for those young disadvantaged people.
LD
Josh Babarinde
Eastbourne
Stripping the politics out of this, it is abundantly clear that substance aside, the breakneck implementation is completely wrong and will throw families, children and communities into chaos. It will also compromise the work of schools such as Eastbourne college, which does great stuff giving back to the community as part of the coastal schools partnership. Does my hon. Friend agree that if this Government are to insist on this policy going ahead, they should at the very least delay it to ensure that our schools, our staff and our communities are not thrown unnecessarily into chaos?
  13:34:54
Munira Wilson
I thank my hon. Friend for his important intervention. As I have said before, it is best that the policy is dropped altogether, but if the Government insist on going ahead, it should be delayed. We need further provision to exempt all special educational needs children, and not just those with EHCPs. Those are two critical factors in trying to mitigate the damage this policy will do.
LD
  13:35:54
Mr Gideon Amos
Taunton and Wellington
Does my hon. Friend recognise that thousands of children do not have EHCPs? My hon. Friend the Member for Chichester (Jess Brown-Fuller) referred to the deluge that would surely come to local authorities in the form of applications for EHCPs. That will be just when, because of the legacy of the Conservative Government, local authorities are on their knees and cannot cope with the level of demand. That will further disadvantage the already most disadvantaged children.
Munira Wilson
I think many of us—certainly on this side of the House—would recognise the point my hon. Friend makes, and many have already made it. I suspect that quite a few people on the Government Benches would also recognise that this policy will be a real challenge, because Members from all parts of this House have been turning out in vast numbers at any debate on special educational needs to discuss the major crisis in our state school provision for SEND pupils. The system is broken, and it will have further pressures still.

I come back to the point I was making on partnership working. The sort of exemplary work I was talking about benefits children in the state and independent sectors, and we want to see it become the norm in every part of the country. I fear that it will be one of the first things to suffer when schools are forced to make cutbacks under the Government’s policy. Let us remember that most independent schools are no Eton or Winchester; 40% of them have fewer than 100 pupils. Those small schools, often in rural places, will struggle to absorb this extra cost.
Ind
Mr Adnan Hussain
Blackburn
Does the Member agree that the policy threatens the viability of many independent schools that have charitable status and serve deprived communities, including many independent schools in Blackburn, such as faith schools and those schools serving children with special educational needs? This policy will put those schools on their knees and vastly increase the number of spaces that will be required in public schools. In Blackburn, we do not have those spaces.
Mr Speaker
I gently say to the Liberal Democrat spokesperson that you have now been going 18 minutes. [Interruption.] No, let me finish before you make a judgment call. I do not want you to speak for longer than the Government Minister, and we are shortly in danger of doing that. I am sure you will be coming to the end of your speech.
  13:38:59
Munira Wilson
I apologise, Mr Speaker. I was just coming on to the last paragraph of my speech, but I wanted to take some interventions from those on the Liberal Democrat Benches.
Mr Speaker
Perhaps the answer should be that you cut the speech if you want to take more interventions.
Munira Wilson
May I just finish by urging Ministers to look, instead of a damaging and counterproductive tax on education, at ways to get independent schools to do more of that great partnership work with state schools and their communities and to ensure they are investing in that local community? Let us ensure that every child, no matter their background or circumstances, is given the support and opportunities they need to thrive. Let us support investment in our education, not penalise it.
Mr Speaker
We come to a maiden speech, and we are now on a six-minute limit.
Lab
Louise Jones
North East Derbyshire
Thank you, Mr Speaker, for calling me to make my first contribution in the House. It is a great honour to be here. I am so proud to be part of a Government who are putting state education at the heart of our mission. I have not been an MP for long, but I have already spent a lot of my time visiting schools in my constituency, and I have seen and heard for myself the very real challenges that they are facing because of the effects of austerity on their budgets. Opportunities for young people are shrinking in front of our eyes. I am glad that we are making these decisions so that we can invest more in the state education that 93% of our children need.

I would like to talk about the service of my predecessor as MP for North East Derbyshire, Lee Rowley. A constant refrain for me when I was campaigning during the election was how well regarded he was as a constituency MP, which is not always what you want to hear when campaigning for the other side, but it is a clear sign of how well regarded he was by his constituents. I also pay tribute to his service in the House, where he served in various ministerial positions with distinction. I particularly recognise his important work campaigning on behalf of those with ovarian cancer. I am sure that everybody in the Chamber will join me in thanking him for his service.

It is a huge honour to represent my home, North East Derbyshire. I will take a few moments to talk about what that place means to me, and indeed what home means to me. For many of my colleagues, home is where they were born or where they grew up. It is very much the origin of their journey, but for me and many others like me, it is the destination. As many of my fellow military veterans will know, I lived in over 11 different places over the past 10 years as a result of my military service. Whether that was a small officer cadets’ bedroom in the Royal Military Academy Sandhurst, kept to the ruthless standards of tidiness that that place demands—standards that may have lapsed since—my first posting to Normandy barracks in the beautiful city of Paderborn in Germany, or indeed the compound in Kabul where I served on operations, my accommodation has been varied, transient, occasionally used as target practice, and rarely felt like home. So when I say that I have found my home in North East Derbyshire, that is because I have come home.

When I turn off junction 29 of the M1 and see in the distance the latticework of green fields of Holy Moor, I know that I am home. When I am walking up Market Street to have a cuppa at the café Host, or something stronger at The Three Horseshoes, I know that I am home. After a busy day’s canvassing, when I am getting a superlative chippy tea at New Tupton Fish Bar or a bacon cobb at Woodheads in Eckington, I know that I am home. When I am crossing the bridge over the River Rother into Killamarsh and I see the sign for that village, called by its original name—please forgive my Anglo-Saxon here—of Chinewoldemaresc, I know that I am home, When I crest the hill at Coal Aston and see before me across the valley the town of Dronfield, with the purple hills of the Peak district in the distance, I know that I am home.

I want to say thank you to the people of North East Derbyshire for seeing in me the service and the values that they want to represent them in this place. I repeat the pledge that I made during my campaign that I will use each and every day here to serve you and deliver the future that I know we can have: a better future based not just on promises, but on real progress.

The work of this Government has already begun, and there is so much that I know will make a huge positive transformation for people in my constituency, whether that is renationalising railways so that we can be proud of the service they provide again, huge reforms to workers’ rights and renters’ rights so that we can end no fault-evictions, or the establishment of the child poverty taskforce so that we can drive down child poverty, just as Labour Governments have done before, and I know we will do again. There is much to do, and much that I am looking forward to being a part of.

Delivery matters. I want to speak briefly about why that is and about the effect that it has on our democracy. This is a subject close to my heart. As I have mentioned, I served in the military, and nobody is so much affected by the decisions of this House as my former colleagues. The decisions that colleagues sat in the Chamber have made and will make will have a direct impact on their lives. Those decisions could send them to dangerous places to do dangerous things. Indeed, some of my former colleagues in the armed forces have not come back. I would like us all to take a moment now to remember Corporal Liam Riley, who grew up in Killamarsh in my constituency and lost his life in Afghanistan. Lest we forget. [Hon. Members: “Hear, hear!”]

It is of deep concern to me when I see that the number of people voting has diminished over the past few years; that so many people up and down the country see politics no longer as the mechanism by which we govern ourselves and bring the change that we want for our communities but as something done by some other people in some other place for the benefit of some other people. It is our duty to ensure that we leave this precious democracy that we have inherited in a better place than where we found it and that we show everybody that a vote for an MP matters, that a vote for a Government matters, and that a vote for democracy matters. That is how we can make the difference in the small towns and villages that make up places such as my constituency of North East Derbyshire.

Finally, there is a piece of advice that I would like to commend to the House. Over the summer, I had the privilege of meeting Clay Cross air cadets. As I take my place in the House, I commend their motto, “Acta non verba”—deeds, not words. We can all agree that that is a good motto to have as a Member of Parliament, and indeed for the Government.
  13:46:32
Mr Speaker
Excellent.
Con
  13:46:45
Alicia Kearns
Rutland and Stamford
I welcome the hon. and gallant Member for North East Derbyshire (Louise Jones) to her place. We need more people in Parliament who have service in their hearts. I also thank her for her good comments about her predecessor and in particular for her comments about Corporal Riley, which I know my hon. Friend the Member for Huntingdon (Ben Obese-Jecty) felt deeply. I thank her for taking the time to do that.

Sadly, I turn to a decision by the Government that does not have service to the country at its heart. This is a cruel, vindictive policy that will damage the prospects of children in both state and independent schooling. It is particularly damaging also for rural economies, which seem to have been entirely overlooked. In Rutland and Stamford, we have 10 independent schools that cater for a vast number of pupils—particularly those from military families and those with SEND—and what is common to all those families is how hard they work for their children to have the right education for them.

I have received heartbreaking emails from parents who have had to sacrifice the education they have worked so hard for. One was from a mother of twins who are midway through their GCSE year. There is no space in the state sector for them—twins who now question whether they will be able to sit their GCSEs because of this policy.

The entire county of Rutland has zero available state school spaces in years 10 and 11, and only three SEND spaces.
Lab
  13:47:46
Ben Coleman
Chelsea and Fulham
rose
  13:47:53
Alicia Kearns
Is the hon. Gentleman just going to stand, or will he ask to intervene?
  13:47:53
Ben Coleman
Will the hon. Member give way?
  13:47:53
Alicia Kearns
There we go.
  13:48:27
Ben Coleman
I am most grateful to the hon. Member. Does she not think that a little bit of an apology from her and her colleagues for the disgraceful SEND system that they left as a legacy is merited? As people cannot get EHCPs or support in the state sector, and councils and cash-strapped families are turning to the private sector, should she not apologise for the legacy that she and her colleagues have left the country?
  13:50:53
Alicia Kearns
I am so pleased that the hon. Gentleman is repeating the lines that the Whips gave him for this morning’s Westminster Hall debate. I was not talking about SEND. It is deeply discourteous to the House to intervene on a Member with a point that is completely separate from the point that they are making; he will come to learn that in time.

As I said, the entire county of Rutland has zero available state school places for years 10 and 11. That means children will now not be able to get their education. I ask the Minister directly: what would he say to 16-year-olds who are to be forced out of their school in January with no alternative place to go and nowhere to do their studies? This is a vindictive policy, and it is absolutely wrong.

I want to touch on the contribution to local rural economies. In Rutland, education is the biggest single employer. As I said, we have 10 schools across 11 sites. In 2022-23, one secondary school in Rutland and Stamford contributed £50 million to UK GDP. It contributed £30 million to local GDP, £14 million was paid in tax to HMRC, and savings of £5.5 million were made to local schools through school places that were not taken. Some 70% of this school’s expenditure is on staffing and, with the imposition of VAT, it is forecast to make a loss for the first time ever. Jobs are being lost. When 70% of the budget is staffing, what does a school do? Cuts have to be made in people’s jobs. More than 2,000 people locally are employed directly by independent schools, and that is not to mention those working in the supply chain, whether driving buses, providing food or flowers, or working in cafés and shops. Rural economies do not have many options at the moment, and independent schools are a bedrock for them. The economic impact of these jobs on rural communities should be considered in an impact assessment, but I very much doubt one has been carried out.

Looking at the national economic picture, the Adam Smith Institute concluded that every child in independent schooling contributes £28,000 to the public finances. The average £2,700 saved on VAT makes a return to the taxpayer of 1,040%. If 5% of independent school pupils leave, the Government will generate £1 billion through this policy. If 10% to 15% of pupils leave, the Government will generate no revenue. If 25% of pupils leave, the Government will lose £1.58 billion, because they are doing something vindictive and wrong.
LD
  13:50:53
Richard Foord
Honiton and Sidmouth
Does the hon. Lady agree that people putting their children through independent school are paying twice? They pay once through their fees and once through income tax. If they are removed from the system, that will mean less money for education.
  13:52:10
Alicia Kearns
The hon. Gentleman is absolutely right. These parents have already paid into the state school system as if their child were going to state school, and they are net contributors to the local education system and the tax system, because they have chosen to ease the pressures on state schools by taking their child out. This is basic economics, and that is why the Government do not understand it.

Independent schools make a huge and optional contribution to the national teachers’ pension scheme. Some could choose to mitigate their increased costs from the imposition of VAT by opting out of the TPS. What assessment has the Minister made of the impact that this would have on the financial viability of the TPS?

Additionally, a number of independent schools in my constituency provide homes for children in foster care who would otherwise have no stability. These are the kind of schemes they will have to stop. That will again result in increased costs and impact on the state sector, which will have to pick these things up.

It is a long-standing international norm to exempt education from sales taxes. Nurseries, universities, tutors and other education providers are not included in Labour’s proposed VAT increase, although as per my intervention on my right hon. Friend the Member for East Hampshire (Damian Hinds), there is a toddler tax, which any parent with a five-year-old child in nursery school will suddenly find themselves paying. It is ironic that the Labour party says that it believes in free university education for all, yet many who take up apprenticeships or go into work will not go to university. Why does Labour think that all of us who do not go to university should pay for other people to go to university, but somehow, when it comes to this issue, we should pay for others?

There is also a question about the legality. Senior lawyers, including Lord Pannick, have argued that this proposal will breach European convention on human rights rules on educational choice and access. What assessment have the Government made of the legality of this policy?

I am already seeing the damage of this policy in the heartbreaking dilemmas facing families who have contacted me for help. For some pupils halfway through their exam years, there are no places in the state system. The requests are clear: the Government must delay the implementation until at least the end of this school year, so that children are not disrupted in their education. We need to exempt those pupils in years 10 to 13, so they can take their exams without the added pressure of a school move. We need to help local authorities to boost EHCP assessments rapidly, and we need to undertake a regional assessment of available state school places to exempt pupils who live in areas with no availability, such as Rutland.

I understand that the Labour party wants to make an ideological attack on education and choice, but I urge Ministers to sit down and think this through. The richest will continue to attend private schools and absorb the increased costs, while families who sacrifice day after day will suffer. For those who are interested, I did go to my local comprehensive, and my children go to their local comprehensive, but I think it is right that we support choice for all. Tony Blair once said, “Education, education, education.” I urge the Minister to listen to the ghosts of Labour past and to do what is right for all children at both state and private schools, not what is right for reasons of ideological dogma, which is what the Labour party is currently doing day after day.
Ms Nusrat Ghani
Madam Deputy Speaker
Many Back Benchers wish to contribute, and I want to make sure that that happens. Back-Bench speeches will be limited to four minutes, and maiden speeches to six minutes. We all love a debate, but every intervention eats into the contribution of another Back Bencher, so I ask Members please to be mindful of that.
Lab
  13:58:18
Mr James Frith
Bury North
I refer Members to my entry in the Register of Members’ Financial Interests. I am pleased to speak in this debate. I am proud to do so for the first time since being put back in my place by the people of Bury North. Returners do not get to be maidens again, so I will just send my best to my predecessor and his family, as is customary. There was not much on which we saw eye to eye, but I respect his work and time in office. I know how losing feels, so I sincerely send him my very best.

It will not surprise you, Madam Deputy Speaker, but I speak in favour of this Government’s laser focus on tackling inequality in our education system. I support Labour’s plans to end the state subsidy of private schools, and it is right that they pay VAT, as businesses expect to pay. I understand the aspirations of parents who work hard and save to provide for their children. I can introduce any Member to thousands of them in Bury North. Many live in some of the poorest wards in the country. Few could ever afford to pay for private education for their children, so I do not expect them to pay for the private education of someone else’s children with a state subsidy and their own hard-earned money.

Forty-three per cent. of children in Bury North live in poverty, and that is concentrated in just three of our nine wards. That is an abject failure of the Conservative party’s 14 years in government—a spike of 10% in as many years. We cannot ignore growing inequalities.

Under this Government’s plans, private schools will become subject to VAT. Although that presents new financial considerations for those schools, I would gently push back on the notion that the costs will automatically mean the same in terms of fee rises. Private schools have a range of financial capabilities to absorb some of these costs: reclaiming VAT on supplies and services; drawing on interest from trust funds or assets; considering how the fees for the use of school assets by the wider community can contribute to the overall budget; introducing fee structures or fees for additional specialist support; and joining with schools in neighbouring areas or nationwide to pay for centralised services. They will remain free to determine what to do, but that is necessary in considering business costs.

None of this is new to schools. I have met some of the brilliant leaders in our private school sector. They are not exclusively innovative, but on a personal and character level, I have loved meeting them and those they teach. Bury Grammar in Bury North is one example. However, as someone who served as a state school governor until recently, I have seen at first hand the budgetary pressures enforced on the schools that teach 93% of our children.

Let us take a moment to consider the Conservative party’s time in office and what has brought us to this point. Under its leadership, we saw an atomisation of our school system, zero accountability for multi-academy trusts, the narrowing of the school system, the off-rolling of children with different abilities, and many young people left without the support they need. It presided over a catastrophic financial crisis for local schools and authorities trying to support children with special educational needs, while SEN families have faced immense frustration, misery and often obnoxious bureaucratic barriers. These parents are forced to navigate labyrinthine systems in pursuit of services that they are legally entitled to access but that remain hidden from view under lock and key.
Lab/Co-op
Oliver Ryan
Burnley
SEND services are really important to people in my constituency as well. Does my hon. Friend agree that we are not anti independent schools or private schools or the work that they do? He is right when he talks about the whole state sector. Does he agree that this is important?
Mr Frith
My hon. Friend is absolutely right. We are not anti. We are for the many and the few. Conservative Members want to remain in their comfort zone following their election defeat. We have all been there, but it is the wrong place to be. It is right that people pay VAT on school fees.

I was at a termly governors’ meeting—Opposition Members will like this—when news of the last Government’s bare-minimum teachers’ pay rise came through. There was some welcome surprise that the then Government had done even the bare minimum. That was quickly replaced by the hard-headed financial reality from the business manager. They confirmed to the same meeting that, even with the 3.5% that had been kept in reserve to meet the contribution they were expecting in Bury to make the pay rise, they would face a budget deficit because the teachers would no longer be on strike. That is right—the Tories designed a system where the leaderships of our state schools have to rely on the unfair treatment of our teachers in order to come in under budget. That is the reality that we face, and it is their everyday experience. There have been no maths teachers for year 11s, and the leadership have been weighing up whether to buy in multiple teaching assistants for cover rather than a science teacher for science—if they could find one. There is a huge amount to do, and this measure will only touch on a fraction of the legacy that Labour must clear up from the last Government and their 10 Education Secretaries.
  14:00:03
Ms Nusrat Ghani
Madam Deputy Speaker
I call Joe Robertson to make his maiden speech.
Con
  13:44:29
Joe Robertson
Isle of Wight East
Thank you, Madam Deputy Speaker. I congratulate the hon. and gallant Member for North East Derbyshire (Louise Jones) on her maiden speech, and thank her for her military service before entering this place.

It is an enormous honour and privilege to represent Isle of Wight East. It is one half of the former Isle of Wight constituency and, if I may say, the better half of the island, only because its wise residents chose to elect a Conservative MP unlike our neighbours in the west. I pay tribute to my predecessor Bob Seely, who served here with dedication, passion and commitment and made a genuinely significant contribution to our shared understanding of Russia and Ukraine, and of international relations more widely. I am sure that whatever the future holds for Bob, he will continue to contribute in that sphere. I also pay tribute to his predecessor Andrew Turner, who served for 16 years and first got me involved in local activism while I was still at school.

The Isle of Wight is known for many things and is much loved, not least of all for sailing. This week is genuinely significant for sailing, as Sir Ben Ainslie and his team have qualified for the America’s cup. The America’s cup was first sailed for around the Isle of Wight in 1851. Unfortunately, the British boats did not win then, and we have never won it, so this is very significant. I send Sir Ben, Sir Jim and the whole team my sincere best wishes to bring back the cup to the Isle of Wight, where it belongs.

The island is well known for its dinosaur fossil records and rock festivals, and as a holiday destination for many happy families from across the UK and internationally. Our biggest town is Ryde, which, together with Sandown and Shanklin, has some of the best beaches in the United Kingdom. Sandown is the home of the Wildheart Animal Sanctuary, which is soon to welcome two new residents—two European brown bears are coming to the sanctuary very soon. In the south we have Ventnor, known for its microclimate and bohemian atmosphere. We have ye olde Kynges towne of Brading, which dates back to Roman times. Brading Roman Villa is a popular visitor destination today, as is Havenstreet steam railway.

However, it is not just the fantastic places on the island and the wonderful scenery that make it special—it is the people. It is warm, generous people like Sally Grylls, a tireless campaigner for better dementia care and better support for those looking after their relatives with long-term frailties, and generous people like Kirsty Chapman at Better Days Café, who help provide food and warmth to those who struggle.

However long I have on these green Benches, I hope to make my own significant contribution, particularly to the most pressing issue of our day: dealing with the pressures in health and, particularly, social care. The biggest reform the NHS needs is to deal with the pressure in social care, to relieve pressure on our hospitals. This Government have said some good things about what they would like to achieve, and I urge them to act quickly. Putting off every reform to a future commission that will report some months or years down the line is not dealing with the issue sufficiently quickly. There are things the Government can already do, and I know from my time working for a national nursing charity immediately before entering this place that we can redirect existing funding better to community services, to help people live at home longer and avoid hospital admissions.

I also hope to contribute to the debate on integrated UK transport. The Secretary of State for Transport has spoken much of buses and rail and improving passenger experience. But we are a collection of islands, and she has said nothing of ferry services. If the Government fail to intervene on ferry services, my residents on the Isle of Wight risk becoming the only community in the United Kingdom entirely reliant on foreign-owned, private, unregulated, debt-laden companies for essential travel—for health, to see their relatives and to access work and other essential services not available on the island. That cannot be allowed to happen, and I urge the Government to intervene.

Finally, on the debate today on taxing children’s education, I remind the Government that not every independent school is a wealthy, famous boarding school. There are good community independent schools such as Ryde School on the Isle of Wight, which make a genuine contribution to the community in which they exist. The Secretary of State put out an unfortunate tweet in which she said that she would prefer to see careers advice in state schools than astroturf for private schools. The private school on the Isle of Wight provides the only competitive astroturf on the entire island, and makes it available to the local hockey teams and football teams. The Government must recognise that contribution.

For however long I have in this place, I look forward sincerely to working with all Members across the Chamber, including my neighbour, the hon. Member for Isle of Wight West (Mr Quigley), to help improve the lives of our constituents, the British people.
Ms Nusrat Ghani
Madam Deputy Speaker
I call John Grady to make his maiden speech.
Lab
  14:06:14
John Grady
Glasgow East
Thank you, Madam Deputy Speaker. It is an honour to have the opportunity to give my maiden speech today. I start by paying tribute to my two immediate predecessors, David Linden and Alison Thewliss. They were thoughtful and conscientious Members of Parliament. David’s diligent work included chairing the all-party parliamentary group on premature and sick babies, a topic that is close to my family’s heart. I greatly respect Alison and David, and thank them for their service to Glasgow. I should mention two other predecessors, Margaret Curran and Anas Sarwar, who, after leaving this House, have continued their public service in Africa and Scotland with great effectiveness.

It is a tough act to follow two great maiden speeches. The hon. Member for Isle of Wight East (Joe Robertson) mentioned bears, and I believe that Bear Grylls lived on the Isle of Wight for some time. A good friend of mine used to suggest that I name my son, and then my daughter, after Bear Grylls, but no good comes of naming a child “Bear” in Glasgow.

The constituency of my hon. Friend the Member for North East Derbyshire (Louise Jones) covers Clay Cross, I believe. The former Labour leader, Arthur Henderson, served as an MP there and Dennis Skinner served as a councillor—quite a combination.

This debate is about schools. State education has been a huge part of my family’s life. My mum and my two aunts were state school teachers. Dad was a rebel, who trained teachers and taught English in a prison to immigrants. They all had a great passion for state education, and I see that passion every day in the teachers who teach my children and who teach in the state schools across Glasgow East. Many parents in Glasgow East struggle to pay for the bare essentials—the cost of the school day. Without being controversial—this is a maiden speech—those parents have great aspirations for their children. The duty of any Government is to focus their finite and limited resources on those families across our nation.

I must say something of Glasgow East, the greatest of the Glasgow constituencies. Next year, Glasgow will celebrate its 850th birthday. My seat is at the heart of it, with some of the greatest medieval architecture. Glasgow green hosts the Templeton building, which is better than anything in Venice. George Square is the heart of Glasgow. My seat has an incredible cultural and artistic life. The young children I have listened to at the Big Noise project in Govanhill, the Glasgow schools CREATE project and the East Glasgow Music School give me great comfort that the next 850 years have a bright artistic future.

We also have some of Scotland’s finest venues, including the Barrowlands ballroom where David Bowie, among others, has played. Gil Scott-Heron was one of the most significant North American musicians of the last century. I have no idea if he played in Glasgow East, but his dad did: he was the first black player for Glasgow Celtic. The world’s first black international footballer also played in Glasgow East. Andrew Watson captained Scotland against England in 1881, and I am delighted to say that Scotland beat England 6-1. Both, as black players, were pioneers. Another football pioneer was Baron Ouseley, who passed away earlier this month. He was the founder of Kick It Out. I think everyone in this House would pay tribute to Baron Ouseley’s immense contribution to our public life. [Hon. Members: “Hear, hear.”] Like the footballer Andrew Watson, Baron Ouseley came to Britain from Guyana. One of Glasgow East’s greatest strengths comes from centuries of immigration. We have one of the oldest Muslim communities in Scotland, of which I am incredibly proud. People from across the world—Roma people, Nigerians, Irish people and Italians—contribute greatly to our city. Immigration has been a source of joy, strength and energy in Glasgow over its 850 years.

Returning to football, I must emphasise that I am entirely neutral about Glasgow football—no good comes of taking a view—but I congratulate Vale of Clyde, the third-oldest Scottish junior club, which has just celebrated its 150th birthday, and Garrowhill Thistle, who made it to the Scottish junior cup final at Hampden this year. I leave football by noting that Kenny Dalglish was born in my seat. King Kenny was one of the best players of the beautiful game, but that is not the profoundest beauty of Kenny Dalglish’s life. It is his devotion to the victims of the Hillsborough disaster and their families. He has lived the famous Liverpool saying, “You’ll never walk alone”. It is that saying that encapsulates the people of Glasgow East.

Many people in Glasgow East face profound challenges with poverty and poor housing, but Glaswegians are determined, hard-working and tenacious, and no more so than when it comes to looking after each other. If I may, I would like to give some examples. John Ferguson MBE, a Parkhead man, was the driving force behind the Parkhead Housing Association. Jimmy Mutter fought hard to transform the Gorbals. He succeeded. The volunteers at the Glasgow south-east food bank, founded by Audrey Flannagan, have provided help to families in Govanhill for many years. Audrey, John and Jimmy made sure that their constituents did not walk alone.

The same can be said about many others in Glasgow. Their values are shared across our family of nations, from the Isle of Wight to the north of Scotland, where my mother came from. The work of these great constituents I have mentioned points to our most urgent task: to fight against poverty. In Glasgow’s 850th year, my duty is simply to play my part in ensuring that no one in Glasgow East, or anywhere in this family of nations, walks alone.
Con
  14:15:06
Stuart Anderson
South Shropshire
I rise to speak on what I clearly see as an aspiration tax. I want to make it clear that all of my five wonderful children are in, or have gone through, state schools. One is in a school that requires improvement because of the catchment area we are in. My education was exceptionally poor. I went to the worst school in the area. I did not get any GCSEs, and when I was handed my results, the teacher said, “There you go, Anderson. I told you you’d never make anything of your life.” My experience of education was not good, but I am a Conservative because I believe in opportunity. I did not have those opportunities as a child, but I believe that everybody should have them.

There are about 1,000 children in my constituency who go to Moor Park school, Bedstone college or Concord college; I have visited all three. Bringing in VAT for independent schools will create huge pressure. I believe that the measure is rushed. It has not been thought through, and it will have a massive impact on all those schools. Some parents will be able to afford it and will not feel the pinch, but many parents I have spoken to in my constituency work two jobs, have one car and do not go on holiday. They do everything they can to give their children the best opportunity in life. That should be championed. We should not remove these opportunities. We should have great state schools across our country, but if somebody wants to work hard and strive, and aspires to give their children the best opportunities they can, we should not remove that. We do that at our own cost.

Growing up, my dad was a soldier, and my mum also served in the military. Many of my friends at school moved around every two years or so. I, too, was a soldier and had children while I served in the military. I know the Minister is a supporter of the armed forces, and even the Secretary of State for Defence has said how serious this measure is for military families. In this debate, there will be a lot of to-ing and fro-ing, but I urge the Government to take seriously the impact that this policy will have on military families. To bring it in as a blanket measure will be detrimental. We will see people leave the armed forces; that will be the cost. That would not be a good way to do this. I am asking for time. Can we push this back? We have talked about what to do to fill the gap. Recruiting more people and raising the standard of state schools will not have happened by January, so we need to look for a time to bring in this measure; mid-term does not work.

The measure will have an impact on special educational needs and disabilities, and people who aspire to send their children to private school, but what is important to me and many of my constituents are military families. I urge the Government to think about that, and come to a decision very quickly about military families, because people are deciding whether to stay in the forces or sign off. Our great men and women in the armed forces need certainty that their children’s education will not be disrupted.
  14:17:02
Ms Nusrat Ghani
Madam Deputy Speaker
I call Antonia Bance to make her maiden speech.
Lab
  14:17:19
Antonia Bance
Tipton and Wednesbury
Thank you, Madam Deputy Speaker. I am honoured to speak for the first time in this House as the Member of Parliament for Tipton, Wednesbury and Coseley. I represent the village of Coseley in Dudley, as well as the towns of Tipton, Wednesbury and Hateley Heath in Sandwell. In the last Parliament, Shaun Bailey was a tireless advocate for this special corner of the Black Country, and I wish him well as he resumes his legal studies.

Let me tell you about Tipton, Wednesbury and Coseley. We are an industrial constituency, shaped by factories, foundries, mines and canals. We have beautiful parks, laid out for the leisure of working people, and civic buildings of grace and gravitas, such as the grade II listed Tipton central library and the 16th-century St Bart’s in Wednesbury. But more than anything, we have the people of the Black Country—creative, ingenious, hard-working and down to earth people like Thomas Barratt. Born in Coseley, he stopped the enemy advance and saved his patrol at Ypres. He was a boilermaker, awarded the Victoria Cross posthumously at just 22.

The workers of Tube Town, the metal finishing capital of the world, went out on strike for two long months in 1913 for a decent wage. They were backed all the way by their wives, heroes in their own right, who somehow kept 25,000 families fed amid near destitution. They won. I am proud to say that their union became my union, Unite. Workers have come to the constituency from Ireland, the Caribbean, Bangladesh, Kashmir and Punjab; they left their homes to provide for their families, facing racism but prevailing, building churches, temples, mosques and gurdwaras, and seeing their children succeed. We are a proud, working-class community. Too often, people have stood in this place and talked our area down. I will never.

Of course, the name “Black Country” is for the smoke of heavy industry; there has been coalmining, steel fabrication, metal finishing, and nail, brick and chain making. We are where the industrial revolution started. James Watt’s first steam engine hauled coal in Tipton, at the Bloomfield colliery. Today, despite everything, a quarter of all workers in our area are still in manufacturing. We may be the Black Country, but modern manufacturing is clean, high-skill and high-wage. In Sandwell, 1,000 firms —with 21,000 jobs—make everything, from street furniture to hinges to locks to the precision metal forming for aeroplanes and power plants. I am proud to wear the “Made in Britain” badge, and to back our new deal for working people.

If we are to have a new industrial revolution here in the UK as we meet the challenge of climate change, let us make it with our hands and our brains, in the place that was the crucible of the first industrial revolution, the Black Country. I stand for no more and no less than this: prosperity for every family. My friends at the TUC worked out that if wages had risen in the last decade by the amount by which they rose between 1997 and 2010, the average worker in my constituency would be £93 a week better off. That is nearly five grand a year more in people’s pockets. In the Black Country, we work hard, but forces bigger than any individual—deindustrialisation, Thatcherism, and the cruel austerity of these last 14 years —mean that good folk there earn less and have fewer chances and fewer choices than people elsewhere.

Fully half of our kids grow up below the poverty line, in infested B&Bs, in homes with damp dripping down the walls, or in flats made for two, but home to three times that. For many, most weeks, the money stretches, just about—until the week when it does not. I want to turn the thoughts of those in this House to the young people in my constituency, almost none of whom go to fee-paying schools. Four in 10 kids in my constituency did not get grade 4 GCSE in maths and English last year. That has to change, and we will change it.

As I stand here today, the obstacles to delivering prosperity, and more than that—comfort, security, leisure—to every worker and every family seem almost insurmountable, but we take heart from our history: from Ernie Bevin, who forged the working-class women and men of the UK into an industrial machine that, from a standing start, equipped our country for victory. In my area, those in saucepan factories made grenades, and car makers built the machines to defeat fascism. That is a reminder that once we turn our minds to something, the ingenuity and drive of the British working class can rarely be equalled. It is for us, here, to set it free.

I will always stand against decline and for progress. After all, I grew up in a world where people like me could not get married, but now our beloved daughter has both her mothers’ names on her birth certificate. To believe in progress is to believe that once again this country can work for working people. It is time, Madam Deputy Speaker, so my final words are to the people of our towns. Tipton, Coseley, Wednesbury, Hateley Heath: I am here to serve you always.
Con
  14:23:30
Gregory Stafford
Farnham and Bordon
I thank the hon. Member for Tipton and Wednesbury (Antonia Bance) for her passionate speech. I think I am correct in saying that she was an Oxford University Student Union officer when I arrived at the university. I remember her passionate defence of socialism then, and I have seen it again today. Her daughter, sitting in the Gallery, will be very proud of her, following her speech.

Unfortunately, however, that defence of socialist principles runs like a thread through the Labour party today. It should not come as any surprise that this new Labour party, which is willing to tax some of the poorest pensioners in the country, has no compunction about taxing some of the most needy children in the country—a shameful act. I am not talking only about the more than 3,000 pupils in my constituency who receive an independent education; I also speak for the many thousands in the state sector on whom this policy will have an impact. Labour Members seem to forget completely about the impact on the state sector.

As I walked along Firgrove Hill in Farnham during the election campaign, I met a father who had just heard that the independent school to which he was going to send his two children had closed. That was in July, and there was no place at the local state school, Weydon—a fabulous school. Even if it had spaces, however, that father would not have been able to send his children there, because he had not sent his children to a feeder school, so even if there are places, not all children can get in.

This measure will have a massive impact on education for those with special educational needs and disabilities. There are independent SEND schools in my constituency, including More House, a fabulous boys’ school. Jonathan Hetherington, the headmaster, has spoken passionately about what this policy will do to his school: 60% of his pupils are on an education, health and care plan, which means that 40% will be affected by the tax. What will happen to those pupils? For one thing, they are likely to drop out immediately because their parents cannot afford it. Perhaps they will then apply for an EHCP, but it will take many months, if not years, for them to get it, and they will be out of education during that time. It is a total disgrace. Equally importantly, when they get the EHCP, it will add a massive cost to the local authorities, which are already overstretched. The simple fact is that independent SEND schools are saving those authorities money.

We also have to realise that independent schools are huge employers, certainly in my constituency. In June, during the election campaign, I knocked on a door in an area that was not affluent—in fact, it is the most deprived part of my constituency. The gentleman who opened the door informed me that he would be voting Conservative because of Labour’s potential policy on this matter. When I asked him why, he said that he was a groundsman at one of the local independent schools, and feared for his job because the school was likely to close; so this policy affects the economy as well.

If education is not a charitable purpose, and if educating our children is not a fundamental principle that we in this House should support, I do not know what we are here for. Labour needs to review this policy, and scrap it as soon as possible.
Lab
  14:28:27
Connor Naismith
Crewe and Nantwich
You might imagine, Madam Deputy Speaker, that members of the Conservative party would understand how out of touch they are on these matters, given that they were so roundly rejected by the electorate in July. However, unsurprisingly, they have demonstrated perfectly that nothing has changed, and it is business as usual as they leap to the defence of tax breaks for private education. This Government believe in equality of education for all our children, and this policy is designed for the betterment of 93% of the UK school population. Only 7% of children in the UK go to a private school—a far smaller proportion than in the most recent Conservative Cabinet, 65% of which, it is believed, were privately educated. Perhaps that tells us something about why we are debating this matter today.

Conservative Members campaigning against the Government’s policy couch it as an attack on the aspiration of hard-working parents. Perhaps they need to be reminded that the warehouse workers, cleaners, shop workers, carers, nurses and teachers in my constituency are also aspirational for their children. They work just as hard to provide the best opportunities for their children. It is offensive in the extreme for the Conservatives to suggest otherwise, and to suggest that they are less deserving of support from this Government.

I accept that a consequence of this decision may be that some people will no longer be able to send their children to private school, as schools might choose to recoup the cost of VAT through increases to fees. However, we should acknowledge the fact that private schools have implemented above-inflation increases to their fees year on year in recent times—over 20% in real terms since 2010—and this has had a minimal impact on children moving into the state sector. I say directly to parents: should our ambition not be that they could send their child to a fantastic state school that has the teachers and resources it needs to deliver the education their child deserves, and where they can excel both academically and culturally by mixing with children from a wide range of backgrounds and experiences that reflect the society in which we live?

The Conservative party was quite keen to promote and exacerbate a two-tier approach to the education of our children during its term in government—a system in which it is only state-educated children who have to accept tough choices and shoestring budgets. We have schools where the ceilings are propped up by scaffolding, schools where teachers are forced to buy basic school supplies out of their own pay packets, and schools where the workload and conditions have become so dire that teachers are leaving in droves.

I am delighted that we now have a Government who do not believe that state schools alone should be asked to make difficult choices—a Government who will end the tax break for private schools and invest the £1.3 billion that that choice will generate into our state schools, which educate 93% of our children. That is why I will be voting against the Opposition motion and in favour of state education.
Ms Nusrat Ghani
Madam Deputy Speaker
I call John Milne to make his maiden speech.
LD
John Milne
Horsham
Thank you, Madam Deputy Speaker.

First, I would like to pay tribute to my predecessor, Sir Jeremy Quin, who represented Horsham for the last 10 years. He was a dedicated MP, and in my first couple of months I have heard praise from many constituents for his past help. An MP’s best work is often unsung and behind the scenes, and I intend to continue his campaigns on issues such as child trust funds.

I would have to go back very much further to find a fellow Liberal MP to celebrate—144 years, to be precise. Being a rock-solid safe seat in a first-past-the-post system is not great for democracy. So many people have come up to me since the election and said it is the first time their vote has ever counted. Horsham’s turnout was over 70%, and if we had proportional representation, we would see that level of engagement everywhere.

For most of my life, I worked as a creative director in advertising, before becoming a local councillor five years ago. I would especially like to thank my family, who are up in the Gallery today, for supporting me in this unexpected career change, because this is a huge journey for all of us, not just me.

Most of Horsham is open farmland, with patches of ancient woodland and villages that retain a strong sense of community. Horsham town itself is pretty enough to be charming, but not so temptingly chocolate-boxy that it gets overwhelmed by tourists. As the name suggests, Horsham was once a home for horse trading, and to this day it is a centre of excellence in the equestrian industry. Horsham is also where our great national poet Percy Bysshe Shelley grew up. With luck, we will see him around town again soon if fundraising for a statue in his honour is successful. We have high-achieving schools, both state and private, and we want to keep it that way. Many of them have approached me with concern over the VAT imposition.

Although Horsham has never been the site of a major battle, it is where the Dalek invasion of Earth started through the work of Ray Cusick, the BBC theatrical designer and long-term Horsham resident. But perhaps the jewel in the crown of the constituency is the Knepp estate, the UK’s leading rewilding enterprise, which now has international fame. This is no frozen museum of conservation; it is a living, breathing experiment in flora and fauna, where nature herself is the key architect.

Of course, Horsham is not immune to national challenges, from a creaking health service to cuts in public transport and crumbling roads, but today I want to focus on the positives. Horsham is a great place to do business. It is hard to believe it now, but Horsham was once a centre of England’s iron industry. Later we became a leading brewery town, and today that tradition is carried on by energetic start-ups like Hepworth, Weltons, Kissingate and Brolly Brewing, which rather enterprisingly came up with a Lib Dem-branded beer during my campaign. We are home to Creative Assembly, one of Europe’s largest video game designers; Schroders, a world-class investment company; and innovative tech businesses like Metricell, which might one day help us solve our pothole problem—that would surely be worth a Nobel prize.

Whereas many high streets have struggled, Horsham’s is bustling—a shopping destination for not just local residents, but visitors alike. I urge Members to join us at the Carfax bandstand on a Friday evening in the summer, where the district council has pumped new energy into the town with a series of free events themed on everything from ska, ABBA, Pride and Bollywood to German oompah music. After a quietish first 1,000 years, Horsham is learning how to party. Whereas other communities have been losing their local theatres, ours is getting a multimillion-pound investment to help the council reach its net zero targets. After the last revamp, under the Tories, the theatre reopened with that surefire box office attraction, “An Evening With Ann Widdecombe”. I wonder if she is still available.

As a constituency that is now half town, half rural, Horsham plays a lead role in striking a balance between competing needs. We have large areas of productive farmland, making a valuable contribution to food security, but the same land is under pressure to provide housing and renewable energy installations. All of these are positive things, but the same land cannot do them all at once.

If there is one thing I would like to focus on during my term, it is housing. I strongly support the new Government’s house building ambitions, but I am surprised and disappointed to see that they are using the same flawed system to fix local targets as before, except with a bigger stick. The standard method, as used since 2018, has been shown to be a hopelessly inaccurate way of assessing local need, nor will it ever make housing more affordable. In Horsham, the average price of a new house is higher than that of the existing stock, so the more we build, the higher our target goes—the exact reverse of what is supposed to happen. Horsham already has 13,500 unbuilt permissions. We will be forced to continue building houses that people cannot afford to satisfy a local need that does not exist, while heaping further stress on to already overloaded local services— and then we are surprised when people say they do not like it.

Just to make things more complicated, Horsham has its own unique challenge, known as water neutrality, which restricts water use for environmental reasons. We are caught between two Government directives that completely contradict each other. One rule says we have to build a fixed number of houses per year, but the other rule says we are not allowed to build any houses at all because we cannot use any more water without damaging the environment. We are being punished for failing to build the houses we are not allowed to build. This is a planning system devised by Kafka, not Beveridge.

For all the challenges, I would like people to see Horsham as a place of opportunity. For everything that is going wrong, something else is going right. It is a huge honour to represent the people of Horsham—one that I never expected to have. As someone who campaigned on a promise to serve as a constituency MP, I could not ask for a better constituency to work for.
Ms Nusrat Ghani
Madam Deputy Speaker
To make sure that we get in as many valuable contributions as possible, Back-Bench speeches will now be limited to three minutes. Please be mindful.
Lab
Mrs Sureena Brackenridge
Wolverhampton North East
I congratulate the hon. Member for Horsham (John Milne) on giving such a passionate speech about his constituency. He spoke so eloquently about opportunity, but I need to speak about the shocking reality in our state-funded schools. The gap in outcomes between disadvantaged students and their peers is at a record high, and school absence rates are at a record high. We have a SEND crisis, a children’s mental health crisis, and a teacher recruitment and retention crisis.

With 25 years’ experience of teaching and working as a deputy headteacher in state secondary schools, I have had to manage the struggles that schools face day in, day out. Children have seen more non-specialists in key subject areas, a reliance on cover teachers, class sizes increasing and school staff burdened with excessive workloads. All this has had a negative impact on learning and on children simply enjoying school, despite the heroic efforts of dedicated teachers and support staff. But the damage is not limited to schools; it spills out beyond the school gates into the wider community.

There can be no denying the need for greater investment in the state education system, and it will be this new Government’s priority to fix the damage caused by years of Conservative neglect.
Con
  14:40:00
Priti Patel
Witham
It is important to start by saying that this entire policy is dogmatic and rooted in the politics of envy—that really is self-evident. It comes from a self-serving socialist Government that are ignorant and blind to the harm that it will lead to for families up and down the country. In the time that I have, I would like to pose a series of questions directly to the Government. This is not only a bad policy; there has been no information on its implementation and what it means for private schools and state schools. That has been raised by shadow Front Benchers and I think we should get some transparency. I would like a response later on.

When the Minister responds, I would also like to hear the details of the costs caused by adding VAT to school fees and the cost of the removal of the business rates exemption. The House has a right to hear where the impact assessment is, what the fiscal projections will be and what the costs will be across every Government Department that is affected. That will be the Department for Education but also the Ministry of Housing, Communities and Local Government, because it is local councils that will continue to pick up the costs.

I put a question about this next matter directly to the Exchequer Secretary, who was also in the Westminster Hall debate this morning. We know that legal action is coming, and I think that the Government should fess up and tell us what percentage of the DFE budget will be put aside to fund the legal challenge. There are parents out there who are so unhappy about this—we met some of them this morning—and they are adamant that they will pursue legal action.

There are many other questions, such as about justification and the implications for local authorities, but I think the point about SEND is important. The House of Commons has published a note that says that for 2024-25, the previous Government had been increasing SEND funding to over £10.4 billion in real cash terms. Is that funding going to go up under this Government, in anticipation of the implications of this policy for children with special educational needs? That could include a growing demand for education, health and care plans. Local authorities are failing, and many of them are Labour authorities. Some of them have gone bankrupt as well in recent years.

There will be an impact on state schools, as they will have to accommodate additional pupils. We need some honesty and transparency around this. Class sizes are going to increase in state schools. How is that going to increase the educational outcomes of children attending state schools? How is that going to raise the bar and increase standards in state schools? We all believe in good educational outcomes for all children across the entire country and we want our education system to be first class and to serve all children, but fundamentally this is just an ill-thought-out policy that will have more costs associated with it and devastating impacts for children attending independent schools.

I ask the Minister in his summing up to show a little bit of humility—[Interruption]and recognise the implications for these children. Labour Members are giggling, but actually this is about children and about the impact of this policy on children whose education will be affected.
Lab
  14:44:32
Laurence Turner
Birmingham Northfield
It is a privilege to follow so many excellent maiden speeches today. I am glad to have this opportunity to talk about schools and education because there is no doubt that schools face very real funding constraints. In my constituency, there are state schools that have been forced to let staff go because the funding just is not there. The Institute for Fiscal Studies calculates that, after school-specific inflation has been deducted, per-pupil funding rose by 0.7% in primary schools over the last 14 years and that spending shrank by 0.5% in secondaries. That compares to real increases of between 5% and 6% over the preceding 13 years.

Figures released in response to a written parliamentary question show that over the last five years, per-pupil funding in Birmingham grew less fast than in the west midlands and across England as a whole. In fact, while per-pupil spending will have risen by just under 21% between 2020-21 and 2024-25, CPI inflation will have increased by about 24.5%. In other words, this is a real-terms cut of around 3%, or a loss of around £179 for each child. Some of the schools in my constituency have some of the highest pupil premium rates in the country. These are not just statistics; they represent a loss of opportunity, a loss of skilled and dedicated staff, and the overcrowded classrooms that flow from that.

At this point I draw the House’s attention to my declarations in the Register of Members’ Financial Interests and my background as an officer of the GMB, one of the unions that represents school support staff.

There is much for schools and parents to welcome in this Government’s approach, including ending single-word inspection judgments, funding free breakfast clubs, reusing space from falling pupil numbers to create new early-years provision, committing to a new child poverty reduction strategy—the first since the Child Poverty Act 2010 was repealed—and reinstating the school support staff negotiating body. It has been welcome in this debate to hear the concern for school support staff roles in the independent sector. I am sure that will extend to the state sector and I hope that we will see cross-party support for that measure.

I want to make a point around SEND. The motion would exempt all children on SEND support from the VAT policy, but SEND support status is determined within schools, and schools in the independent sector do not have the same budgetary restrictions as state schools, which are obliged to set aside nominal SEND budgets. There is a real risk of creating false incentives, as the “Today” programme’s 2017 investigation demonstrated. Ours is the right policy, and this is the wrong motion. I look forward to voting against it later today.
Con
  14:47:10
Claire Coutinho
East Surrey
One in four pupils in Surrey go to an independent school, including more than 4,000 pupils in my constituency, and many of those pupils have a special educational need. We have had an increasing rise in the diagnosis of conditions such as autism. The proposal is being pitched as a fundraising measure, but I do not think anybody on the Labour Benches came into Parliament to raise funds from pensioners in poverty and families of children with special educational needs. I will come on later in my speech to whether this will raise any money at all.

In his wind-up, I hope the Minister will address this point: what justification can there be to an immediate exemption of specialist schools from the tax? On 11 September, Opposition Members representing Surrey constituencies wrote to the Chancellor to make that point. In response to a survey in my constituency— 1,200 parents responded nationally—87% of parents with children at independent schools said that they would have to consider sending their child to a state school. Some spoke specifically of the anguish they faced, having spent years trying to find the right placement for a child who might have ADHD or autism and having finally got them settled, now having to consider moving them again.

Some Labour Members have asked why those children could not be served by the state sector. We increased funding for the SEND sector by 70% over the last few years, but you cannot magic up 99,000 places overnight. A teacher at Moon Hall in Reigate said that 70% of their pupils were on EHCPs and 30% were not, and that all those children would suffer. The other point is that the state sector will have larger class sizes, so rather than improving the state sector, all children in the state sector will suffer. They will all have worse outcomes. The Secretary of State for Education should care about outcomes, not ideology, but it is clear that she does not because we have seen teachers’ unions warning about the impact on the state sector. The Government have not published an impact assessment.

According to the Institute for Fiscal Studies’ report that Members have been quoting, we do not know how much money will be raised due to the uncertainties over children with special educational needs. I appeal to all Labour Members to ask themselves and their consciences why we cannot exempt children with special educational needs from this tax? It will not raise any funds. It will increase class sizes in the state sector and affect the outcomes of all children. It must be reversed.
Lab
Warinder Juss
Wolverhampton West
Fourteen years of Conservative chaos have left behind a trail of destruction in our state education system, which is used by 94% of our children. Is it not time that we put our effort into improving the state education system?

When I knocked on doors before the election, one of the main questions I was asked was, “Where will we get the money to put right everything that has been put wrong by the last Government?” Leaving aside the £22 billion shortfall, we now need to find extra money to recruit extra teachers, to provide extra nurseries, breakfast clubs and mental health support in our schools, and to make all the other positive changes that this Government intend to make to create opportunities for all. My hon. Friends have already highlighted the things we need to address in the state education system.

Ultimately, private schools are businesses that have enjoyed an exemption from VAT being charged on their fees, and it is now time to end that exemption. I have three private schools in my constituency, and I have had meetings with the two that wanted to meet me. I have had discussions with parents from those schools. It is a fallacy to suggest that lots of students will leave their private school to go into the state education system. I have been asked whether this Government have considered the timing of the policy’s implementation: to reassure parents, I believe the Exchequer Secretary to the Treasury, my hon. Friend the Member for Ealing North (James Murray), confirmed that he has given due consideration to that point.
Con
Dr Luke Evans
Hinckley and Bosworth
There appear to be two parts to this debate: ideology and practicality. Fair play to the Labour Government—when they came in, they said that they intended to introduce this proposal. They told the public and put it in their manifesto, for which I respect them. That is important, especially when compared with their policy on winter fuel payments. But it is hard to see how it is not ideological, when the Secretary of State for Education has tweeted:

“Our state schools need teachers more than private schools need embossed stationery. Our children need mental health support more than private schools need new pools. Our students need careers advice more than private schools need AstroTurf pitches.”

This reeks of prejudice and propagates a class war, and I am sorry to say that the Secretary of State is not here to defend her tweet. She is a decent woman, and I would like to think that she would apologise.

As I said, this is a manifesto commitment, and the Labour Government have a mandate to deliver it, but they also have a mandate to deliver it in a way that takes the impact into account. In response both to today’s debate and my questions to the Leader of the House, we have heard that Ministers have seen an impact assessment. If they want to champion this plan, why not share the information with everyone? One private school in my constituency that will be affected, Dixie grammar school, has simply asked, “Why can we not see what the impact will be?” That is not an unreasonable question.

As I said to the Minister earlier, children are at the heart of this. I do not see the rush to implement this policy in January. The Prime Minister put his child in an apartment because he was worried about the impact on his child’s education. I respect that decision, but does he not see the problem with implementing a policy that will have exactly the same kind of impact by tearing kids out of their schools? Mark my words: it will happen. That is what the two private schools in my constituency have said. Where is the report addressing the impact on their education?

In my constituency, the biggest problem will be that we do not have the school places for pupils who move out of private schools. What will happen then? We have not heard how this Government will deal with that, and that is the fundamental issue. How will children and families cope? The Prime Minister insulated his child, but how will the Government insulate the nation’s children?
Lab
  14:55:44
David Baines
St Helens North
I am delighted to take part in this debate, as I am always grateful for the opportunity to praise and defend our public services, particularly our state schools, and the millions of people, including the vast majority of my constituents, who rely on them.

The Opposition motion

“regrets that the Government has decided to impose VAT on independent school fees”.

Well, I regret that the last Tory Government did all they could to deliberately and carefully dismantle, defund and destroy our public services, including state schools, for 14 years—[Interruption.] There is a huge amount that I could say, but we are pushed for time and many Members want to speak, including lots of Government Members. I know there are more of us here—[Interruption.] Every day, indeed. There is a lot that deserves to be said about our schools. We have heard many Conservative Members ask about the impact. They suddenly care about the impact of decisions made in this place, but where was their talk of impacts over the past 14 years? In St Helens North, 81% of schools have had real-terms funding cuts since 2010—over £3 million in real terms, or £239 for every pupil. Where was the consideration of impacts when the last Government cancelled Labour’s Building Schools for the Future programme and watched our state schools crumble? Where was the talk of impacts when the last Government presided over a SEND system that is failing over 1 million children and that their own Education Secretary described as a “lose-lose-lose”? Where was the concern for impacts when standards fell, which they did?
  14:56:38
Damian Hinds
Will the hon. Gentleman give way?
David Baines
No, I am pushed for time.

Where was the consideration of impacts when the inspection system did not and does not work for parents, schools or pupils? Where was the consideration of impacts when child poverty increased? Where was the consideration of impacts when the lack of investment in school support staff and basic resources meant that teachers were buying resources for their pupils? Where was the consideration of impacts when we had a recruitment and retention crisis among teachers?

We could talk about all these issues if the Conservatives truly wanted a debate on schools, but they do not. They could have used today’s Opposition day debate to talk about these things, but instead they have used their time to talk about our decision to end a tax exemption that benefits only the wealthiest. They showed no concern whatsoever for state schools over the past 14 years, and now they are apparently concerned about impacts.

I make it crystal clear that the parents of state school pupils are every bit as ambitious, loving and hard-working as those who can afford to send their children to private schools. I stand with them, and I stand with our state schools.
Con
Dr Caroline Johnson
Sleaford and North Hykeham
Others have talked about the effect on children of military families and on children with special educational needs, as well as the impact on friendships, mental wellbeing, jobs in both state and private schools, and the bursaries, but I will focus on students in exam years. I declare an interest as I have three children in private school, one of whom is in her final year.

This measure is wrong, but it is especially reckless for those in exam years. We have heard a lot about the steps the Prime Minister took to ensure that his son could study peacefully, to give him the best chance in his GCSEs. Why does he not want the same for all the other children in this country?

The measure is not only disruptive but potentially impossible. Local to my constituency, Stamford school offers A-level Russian, Lincoln Minster school offers A-level Chinese and Oakham school offers the international baccalaureate. How could those children move into a state school that does not offer their course? Even if their course is offered, the timetable might not work. And even if the timetable works, the school might not teach the same periods and texts. For example, a student at Nottingham girls’ high school studying the Russian revolution as part of the AQA history curriculum might have to move partway through the year to Branston academy, which is teaching the Tudors under the OCR curriculum. What should children taking such courses do? Should they change course, merely months or even weeks before their exams? Should they try to learn the material themselves? Should they resit a whole year of school? Will the Government provide state schools with the extra resources to help those children complete their courses? If they intend to do so, will those resources be ready and available to the state schools those children will be forced into for January 2025?

I want to talk briefly about bursaries. I went to a state primary and a state secondary school. When I was a teenager hiking with my parents in the North York moors, I met a young lad who told me all about the cool, exciting school he went to, where they did a lot of outdoor stuff. I said, “I would like to go there. That would be really cool.” My parents said, “That’s far too expensive, Caroline. We can’t do that.” Then I read about the scholarships they offered. I was very proud and pleased that Gordonstoun School offered me the opportunity to study at the sixth form there—I will always be intensely grateful for that.

The measures proposed by this Government will reduce the amount of bursary support available to students like me, and those currently receiving bursaries, which enables them to get the education they wish for. Schools will have to cut back. The most obvious areas in which to do that will be in their charity work, the extra teaching staff they offer to pupils in state schools and the facilities they make freely available to state schools. This is a short-sighted measure focused entirely on the politics of envy and division.
Lab
Laura Kyrke-Smith
Aylesbury
Last week I had a meeting with a group of incredibly dedicated and determined women in my constituency, all of whom have children with special educational needs. We discussed the broken SEND system and what it will take to fix it. I would like to share their top three points.

First, the women said that when they chase for an assessment, diagnosis or school place, they are made to feel as if they and their children are a problem, when all they are doing is trying to ensure that their children get the same support and acceptance as any other child. One lady said she was treated like a criminal. This mentality towards SEND children and their parents has to change.

Secondly, these parents want their children to be able to go to their local state schools, in their community, but they feel that schools have a very limited understanding of their children’s complex needs, let alone an ability to manage them. One mum told me about her child being excluded from school because their complex needs were treated like a behavioural problem. However, I know, for their part, that schools do not have enough staff or training to cope.

Thirdly, these mums are sick and tired of the lack of accountability in the system. Schools are not being held to account for the way they manage and incorporate SEND children into school; local authorities are not being held to account for their services; and home-to-school transport providers are not being held to account for how they look after the children. The fact is that the support system for children with special educational needs and disabilities is broken.

The answer lies in both funding and reform of the system. We have to make tough choices on where to find that funding—tough choices that the previous Government ducked. Rather than political point scoring, we owe it to all the SEND children and their parents, carers and teachers to work together and do everything in our power to fix this system as quickly as possible.
Con
  15:04:30
Mr Andrew Snowden
Fylde
From listening to contributions made by Members from across the House, it is clear that these measures represent ideology over reality. The policy is economically illiterate, new consequences and implications are being discovered by the minute, and it will make worse every problem that Government Members say they perceive in the state system. They keep saying that they need to find more money to fill the black holes that they have magically found, yet the headlines show that they keep finding billions for pet projects every week.

I was recently asked to go to a public meeting with over 100 concerned parents in my constituency. I listened to their stories and heard about their circumstances. From that evening alone, before we even got to this debate, it was clear that this policy was an ill-conceived disaster waiting to happen.

Some 1,800 children in Fylde attend independent schools, hundreds of whom receive provision for SEND. Schools, including AKS Lytham and Kirkham Grammar, as well as smaller, specialist independent schools, are major employers and have been at the heart of local communities for generations. The parents of the children at those schools are often not rich. They scrimp and scrape, take on extra jobs, miss holidays and do not buy new cars because they have made personal decisions about their children’s education. Every parent should have that right and should not face a tax on the education of their children. The idea that such parents are all just rich and can take the hit, or that the schools spend 20% of their income on embossed stationery and swimming pools, is simply nonsense.

This policy is fighting the class wars of the past with the future of the children of today. Lancashire county council has already said it cannot get close to meeting the forecast increase in places that will be needed, even before we get to the most acute SEND provision. This tax on education will not just hit independent schools, some of which are already facing closure; it will hurt the state sector more—I say this as someone who was proudly educated at a state school. The policy is clearly the politics of envy done badly—so much for the supposed “grown-ups” being back in charge.
Lab
  15:06:09
Daniel Francis
Bexleyheath and Crayford
For the record, my wife is a special educational needs co-ordinator in a local authority school and one of our children is in receipt of an EHCP.

I have heard accounts from parents and seen at first hand the decisions local state schools have had to make to cut their budgets. Teachers and staff have to subsidise classroom equipment, make cuts to the curriculum and mix year groups to reduce teacher numbers, which has an impact on children educated in the state sector in my constituency. Conservative Members would do better to spend their time understanding the real issues on the frontline and the impact that their decisions, made over the past 14 years, have had on my constituents in Bexleyheath and Crayford.

The Ofsted area SEND inspection of the Bexley local area partnership last December found

“widespread and/or systemic failings leading to significant concerns about the experiences and outcomes of children and young people with special educational needs and/or disabilities (SEND)”.

The report concluded:

“Overall, the voices of children and young people are not heard well in Bexley.”

The task of fixing that lies with the Bexley local area SEND inspection partnership and a range of partners, including our schools.

At the same time, because of the pressures in our schools, Bexley’s Conservative-controlled council found that the only way to stave off bankruptcy, due to its significant high needs block overspend, was to agree a safety valve agreement with the previous Government. A report to Bexley schools forum last week outlined that

“it will undoubtedly be very challenging to succeed in both delivering the mitigations already envisaged in the Safety Valve agreement (the impact of which is assumed to accelerate in 2025/26) and also in identifying further realistic cost reductions to deal with the current level of overspend.”

It said that the deficit at the end of this financial year is

“expected to exceed the safety valve assumptions by £1.798m.”

While this unholy mess has been unravelling, impacting the most vulnerable children in my constituency, I was shocked to see a return published in the Electoral Commission register. An independent school in my neighbouring constituency, but within my local authority area, made a financial donation to a local Conservative association. I am afraid that that sums up the sorry state of where we are. While Conservative Members presided over 14 years in government, delivering a position where teachers and parent teacher associations are funding basic provision in our state schools, an independent school clearly does not find itself in that position, as it is able to donate part of its profits to the local Conservative association.

I was clear in my election campaign three months ago that I would support the policy to introduce VAT on private schools. That is the mandate given to me across Bexleyheath and Crayford. For the reasons outlined, I will be opposing the motion today and supporting the Government.
Con
  15:07:53
Peter Fortune
Bromley and Biggin Hill
My children have been educated in both the state and independent sectors. I spoke earlier in the Westminster Hall debate about how Labour’s plan to impose VAT on independent schools is a tax on aspiration, but it is also something else: a lack of understanding of how to govern. The Government’s education tax is not just a lousy decision; it is a lousy plan.

As has already been said, imposing the VAT in January—the middle of the school year—risks disrupting children’s education and forcing mainstream schools to accept mid-year students. It denies parents time to prepare and does not allow independent schools time to register for VAT. Families of more than 5,000 pupils studying at independent schools in the London borough of Bromley and my constituency must find up to £4,345 more per year to protect their children’s education, or take the gruesome decision to remove their child from their friends and the school they enjoy, even at crucial moments such as GCSE and A-level years. Is that really what the Government want? One concerned parent told me that, with their children just two terms away from their GCSEs and A-levels, finding a local state school with the capacity to take them on and that is studying exactly the same exam boards would be impossible.

In truth, the Government have no idea how many pupils might leave. The Institute for Fiscal Studies, which the Government rely on, estimated that up to 40,000 people would leave independent schools, but it admits that there is too little evidence to be sure and that the situation is uncertain. In 2018, the Independent Schools Council estimated that, if this change were imposed, pupil numbers would drop by more than 134,000 over five years. Whatever the number, it is a safe bet that this will be a slow burner, with some pupils forced out immediately, others leaving after exams, and those who will never enrol, resulting in years of uncertainty for schools, their staff, students and teachers, as many smaller schools will simply wither away.

Even a moderate number of exits threatens to close small independent schools. The likely result will be fewer pupils, fewer schools and more significant pressure on mainstream schools. This is a reckless recipe that will disrupt the education of pupils with special educational needs, pitch parents against councils and burden mainstream schools. When the Labour party said that it would not tax working people, we had no idea that its targets were children and pensioners. This is ideological, not practical, and it will impact far more pupils than the Government will admit to or recognise. Let us be clear: in a few short weeks, when children up and down the country will be saying goodbye to their friends, when they will be struggling with the anxiety of being forced to go to a strange new school, and when, through no fault of their own, they will be suffering academic pressure in an exam year, it will be the result of Government policy. As one headteacher said to me, this policy is nothing short of cruel.
Lab
Mr Jonathan Brash
Hartlepool
I am new to this place. Indeed, until 4 July, I was teaching at an independent school. [Hon. Members: “Oh!”] Indeed. To all those Opposition Members who repeatedly say that this is a policy of spite, that this is an ideological attack, that this is envy and that this is cruel and vindictive, I say that it is nothing of the sort. This is about fairness. I have friends and former colleagues who are right now teaching in the independent sector—in fact, they are 10 minutes into period six as I speak. When someone runs a private business, they pay VAT. We believe in paying our taxes. [Interruption.] The hon. Member for Boston and Skegness (Richard Tice) makes the point about charities. I will say the same thing to him that I said to my former boss: charging somebody £15,000 a year for an education is not a charitable act.
Reform
Richard Tice
Boston and Skegness
Education is a charitable endeavour.
  15:12:46
Mr Brash
The hon. Gentleman was briefly the candidate in my constituency. Given the result, it is rather a shame that he did not continue to be so.

As I understand it, the Opposition could have tabled a motion about anything for today. They could have tabled a motion about the crisis facing children in social care, slowly bankrupting local authorities such as mine. They could have tabled a motion about child poverty which results in 1,500 Hartlepool children not having a bed to sleep in tonight. They could have talked about the scandal of children arriving at school hungry, the 10% cut to our further education sector, the drop of a third in our apprenticeships, and the school cuts that have cost Hartlepool schools £1.7 million in real terms since 2010. But no, they chose to talk about this—the removal of a subsidy that the 93% pay for the 7% who want to send their children to private school. It is wrong and the myths attached to it are ridiculous.

I do not have the time to go into the many things that I would like to say, but I want to finish on one simple point: I am sick and tired of hearing people talk as if the parents of aspiration and the parents who work hard are only those who want to send their children to private school. All parents aspire for their children, all parents work hard for their children, and we stand up for all parents and all children in this country.
LD
  15:15:07
Christine Jardine
Edinburgh West
It is a pleasure to follow the hon. Member for Hartlepool (Mr Brash). I would just mention that I am the child of aspirational parents from a working-class background. There were three little words uttered by Tony Blair that gave a lot of my family faith that an incoming Labour Government would be a good Government. Those words were, “Education, education, education.” Now those same people tell me that they are disappointed in a Labour Government who are going to tax education. Let me be clear about this. Charitable education is not about the children in the school; it is about the children who are not at the school. It is about opening up the facilities to the community, which I am sure the hon. Gentleman knows, and it is about serving the community. That is where the charitable status comes from. I know that because my child was one of the 7% who went to an independent school.

The hon. Gentleman talks about allegations of vindictiveness and ideologically driven policies. They are coming not from those on the Opposition Benches, but from the hundreds of emails that we are getting from our constituents. Our constituents are worried about how they will get their child into a state school, and the parents of children at state schools are worried about what is going to happen to the resources at their school when it has to cope with the influx of children from the independent sector.

Every year, 20% to 30% of children in Edinburgh go into the independent sector. Figures produced by the Labour-led council just before the general election showed that, by the end of this decade, 16 schools will be over capacity, without any influx from the independent sector.

We have problems in education, but this is not the solution to it. It is especially not the solution in Scotland— I am not going to preach to Members about English education. We have had 17 years of damage and mismanagement of our state sector in Scotland from the Scottish National party. To parents in Scotland now, it just feels like the Labour party is joining in.

There is one big flaw in this: the Minister said earlier that the money will go back into education, but parents in Scotland would like to ask how. There is no mechanism. It is a reserved tax, and education is devolved. Even if the Government could come to some agreement with the SNP, how will they ensure that places for the 9,000 children in Edinburgh in independent schools are available in their catchment area? How will they make sure that they will be studying the right subjects, and how will they do it by January? It is just five months before they disrupt children’s education. I have listened to lots of people here today say that every child’s education is important—yes, it is. Every parent has aspirations for their child—yes, they do. And every child deserves not to have their education disrupted with just five months to find a solution. That is not fair.
Lab/Co-op
  15:17:23
Chris Vince
Harlow
Thank you, Madam Deputy Speaker, for giving me the opportunity to speak in this debate.

I find it incredible that, after 14 years and an abysmal record on education, Conservative Members want a debate on education, but somehow I am not surprised. I often joked that, if they had the opportunity, they would blame teachers for the sinking of the Titanic—although I was told that they had actually done so recently.

As a former teacher, I saw the Conservative Government’s abysmal record on education at first hand. In fact, I am standing here in this House because of it. When the former Member for Surrey Heath declared that the majority of teachers were letting down the children that they teach, I saw red. I knew that only those people who donned the red rosette could fix the mess created by 14 years of ideological cuts. Between 2010 and 2020, spending per pupil in England fell by 9% in real terms. One in eight schools were in deficit by the end of 2023, and two out of three local authorities are struggling to find funding for SEND provision in their schools.

In 2022, 40% of trainee teachers failed to qualify and left because of the unmanageably high workload. Having recently spoken to several teachers in Essex, I know the profound impact that 14 years of Tory mismanagement has had on their mental health. But it is worse than that. In 2012, Essex county council first raised with the Government the issue of RAAC in our schools, and the Government said that there was no money to fix it. Now, in 2024, the failure to properly tackle this issue has been borne out. Last week I visited Jerounds primary school, one of the many brilliant primary schools in Harlow, which is currently unable to provide hot food to its children because its kitchen is still closed due to RAAC. Sir Frederick Gibberd school in Harlow cost £29 million to build, and because of the failure of the last Government is having to be pulled down.

The education system is broken, and it is broken by Tory design. Labour has a plan to fix the education system, but it requires difficult decisions. Removing the tax exemption on private schools is not the politics of envy, but it is a necessary action, which will generate between £1.3 billion and £1.5 billion for the UK Government—to invest in our schools, to invest in our teachers, and to provide the people of Harlow, of Essex and across our country with the best possible education. I will take no lectures from the Conservative party about education.
Con
  11:30:00
Simon Hoare
North Dorset
Let me reiterate to the Minister the asks that the Opposition have. In an ideal world we would prefer this policy not to go ahead, but the mathematics of this place indicate that whatever the Government wish to do, they will secure.

This change should be delayed until September 2025; that would allow for sensible planning. Clearly, those with SEND and the children of serving military people or those in our diplomatic service should also be exempt. I would also like, on behalf of many of the schools in my constituency that have raised this, to know whether VAT will be applicable to summer schools and other events that are put on.

Bryanston school in my constituency has a fantastic relationship with Blandford high school. Unlike the Treasury Minister who opened the debate, I have no skin in this game; I was not privately educated, nor are my three children. But North Dorset is not a particularly wealthy constituency. Seven hundred and ninety-two jobs are linked to Bryanston school. The soft power that the schools provide in the international environment also need to be taken into account. Bryanston school alone makes a contribution of £24 million a year to the local North Dorset economy.

My asks are quite small in comparison to the ask that my Labour opponent would have been making of the Government had he won in July. Because when Richard Jones, the head teacher of Bryanston, at a church hustings, set out all the good work that Bryanston does in the community, its contribution to the economy and the jobs that it creates, my opponent said he was fantastically interested, and would table an amendment to the legislation to secure an exemption for Bryanston school. So if the Labour Front Benchers could not even convince their own parliamentary candidate in North Dorset of the merits of this policy, they have signally failed to convince the many parents and others who work very hard to send their children to school in the independent sector.

My final words are for the Secretary of State for Education, after the terrible tweet that she put out a couple of days ago. She is the Secretary of State for the education of all children, irrespective of which sector they are educated in. She used divisive words, referring to “our children” versus theirs. That is them and us. She has aided the Government’s case and argument not a jot. She is the Secretary of State for the education of all children; I wish she would take her responsibilities a wee bit more seriously.
Lab
  11:30:00
Darren Paffey
Southampton Itchen
I welcome the opportunity to speak about what it means to have a Government who will not just talk about opportunity, but take action to bring opportunity, aspiration and ambition to not just 7% of the population but 100% of our children and young people.

Like my hon. Friends, I note that the Opposition motion expresses the Conservatives’ “regret” over this policy. Do they not regret 14 years of underfunding our state schools? Do they not regret slashing opportunity by shutting Sure Start centres lock, stock and barrel? Do they not regret growing child poverty on their watch? Do they not regret that more Members on their Benches have turned out today to defend tax exemptions than did to defend their record on the NHS last night?

I am proud to stand here today because this is a Government who are putting ambition and opportunity front and centre in our missions. Our principle—that everyone growing up in my constituency of Southampton Itchen should have the opportunity to get the best start in life, to do well, to be ambitious and to be supported to fulfil their dreams—should not simply be the preserve of children in independent schools. Every parent wants the best for their children, whichever school they choose.

I have had parents who have taken the decision to pay for private education for their children get in touch with very real concerns, which I acknowledge—that they are not all the super-rich, and that not all independent schools are like the Etons and Harrows of the world. But claims of an exodus from private schools to state schools are, I am afraid, completely unfounded. Opposition Members should be listening to the chief executive of the Independent Schools Association, representing less prestigious, less expensive schools, who has talked about how many might benefit from a “trading down”, which means more students and more income to their schools.

As my hon. Friend the Member for Crewe and Nantwich (Connor Naismith) noted, there have been above-inflation price increases for those schools year on year, and there has been no diminishing of student numbers. One small independent school that many children in my constituency attend said it has already made plans. It has planned for business and they will pass just 4% on to school fees. So this is not about restricting parents’ choice; it is not anti-private school. It is about fairness, and it is a question of priorities. Improving all our state schools to benefit everyone costs money, and that is why we cannot justify these tax breaks any more.

I wonder, reading this tone-deaf motion from the Opposition, what they would say to constituents in Southampton, where many schools have had to ask for donations, and where the teachers they do not think deserved a pay rise have been struggling. We make this choice with no apology.
Con
  15:26:57
Saqib Bhatti
Meriden and Solihull East
I want to say from the outset that this is clearly an attack on aspiration, an attack on opportunity. I say to the constituents of the hon. Member for Southampton Itchen (Darren Paffey) that he voted for winter fuel payments to be slashed and now he is voting for an attack on hard-working families who will be struggling to make ends meet. I went to a state school and an independent school and I was grateful for both those journeys and the education that I received in both. Plenty of hard-working families will be struggling to make ends meet.

The first point I want to make is about tone. I will come back to the Education Secretary’s tweet, which was deeply offensive. Surely Labour Members must acknowledge—it is a simple case of maths—that people who are rich enough to afford VAT increases, whether it is 4%, 16%, which is the average, or the whole 20%, will continue to send their kids to independent schools and pay the fees. It is the people who are struggling to make ends meet, or the really hard-up families, or—God forbid—parents of children who are on scholarships and bursaries who will no longer be able to send their kids to those schools, because those schools will have to withdraw those scholarships and bursaries as they will be less affordable. So the tone of this debate is really important. I would caution the Government to be more reticent on this. They refer to tax breaks; these are not tax breaks. Education should not be, and is not, taxed, and they are about to open that Pandora’s box.

There have been a lot of comments from Government Members about state schools. I agree: standards in state schools should be improved. They talk about the last 14 years. We delivered a real-terms increase per pupil. We have delivered record funding—about £60 billion. They may challenge that, but it is pure fact. I am happy to share those facts. We did that, and the result of that, especially with our focus on things like phonics, which Labour challenged when in opposition, is that we now have some of the highest reading standards in the world—independently and internationally rated. We also have some of the highest ratings in mathematics. So the Government may try to frame this debate as anything other than ideological, but those arguments are severely undermined by the Education Secretary’s tweet, which put it out there that this is really a class war.
Dr Caroline Johnson
My hon. Friend is making a great point about how this change is ideologically motivated. Can he see why there is a difference between private school fees, which the Government have chosen to tax, and something like Kip McGrath tuition, which is also a paid-for form of education, which they have chosen not to tax—at least yet?
Saqib Bhatti
My hon. Friend made an excellent speech about the practicalities of introducing this change in January, and she makes an excellent point now about the slippery slope involved. The Government say that the money will be focused on educational improvements, but there is no guarantee of that, as it will go into the general pot. They promised 6,500 new teachers, which is fewer than we delivered; it is a drop in the ocean, which will barely make a difference to the hundreds of thousands of schools that, of course, need extra teachers. I concede that point; we should have better educational standards.

SEND will affect every Member of Parliament. It affects me. I was with a north Solihull parents group just a few weeks ago. Those parents will no longer be able to afford to give their children a private education for SEND purposes, and they will now have to rely on the state. Surely Government Members can see that that will further increase the burden on state provision, particularly if they are right that there is a lack of teachers. The Minister might address this point: how does this policy improve state school provision? How does it improve the standard and quality of delivery for SEND parents? It was all right for the Prime Minister to make special provision for his kids, and for the Education Secretary to have a benefactor, but what are these parents going to do?
Lab
Josh Fenton-Glynn
Calder Valley
I am proud to have gone to Calder high school in my constituency—the first purpose-built comprehensive school in the north of England. The history of that school and its teachers are fantastic, but the building is not. After years of under-investment in the capital programme and the shameful cancelling of Building Schools for the Future, the building is crumbling. The same can be said for Brooksbank school and Todmorden high school, which are also in Calder Valley. All of them would have been scheduled for a rebuild sooner, had the Government not cancelled Building Schools for the Future.

In the state sector, the problem is not just that the buildings are on their knees; there is also the issue of everything inside the buildings. At the start of the previous Government’s austerity programme, we heard about teachers going without items, or buying them with their own money—glue sticks, books and so on. Now when I talk to headteachers, they talk about going without teachers and support assistants, who are so vital for children’s needs.

We can judge a Government, or indeed an Opposition, by their priorities. Frankly, the fact that the first Opposition day debate on education focuses on the 7% of students who go to private schools shows where this Opposition’s priorities are. If they had held a debate on SEND, I would have welcomed it, because SEND provision has been left in crisis. In Calder Valley, I can point to multiple examples of parents for whom advocating for their child has become a second job—and that is just those who have the resources to do so.

Ahead of this debate, I asked headteachers what their priorities for education would be. One, who did not want to be named, said:

“Any therapeutic service is no longer easily accessible. No educational psychologists, no speech and language therapist access for the increasing number of pupils who can’t access the curriculum.”

We need to focus on the next generation in state schools—in all schools. That should be our priority. If I asked my constituents in Calder Valley what they think £1.5 billion should be spent on—that is the value of this tax break—it would not be the 7% of children who go to private schools.
Con
Jerome Mayhew
Broadland and Fakenham
I have a child at a private school. Government Members say that is not a problem. They say, “This is not a criticism of private education; this is merely a revenue-generation exercise, not social engineering or socialist class war.” It must be a coincidence, then, that this policy punishes aspiration, pulls children down rather than lifting them up, and is being rushed through, as we have heard time and again. It is a socialist, red-meat policy to placate the Labour Back Benchers who are having the gradual and terrifying realisation that they may well be single-term Members of this place.

The Government need to think again. We have heard serious objections to this policy—not to its implementation, because the mathematics of this place mean that the Government have sufficient support behind them to force anything through, however ill-advised, but we have heard serious recommendations for review, improvement and tweaking to undo some of the significant damage that this policy, unamended, will cause.

Introducing the policy on 1 January, halfway through the academic year, will damage children and children’s education. These are real people. Some 10,000 children have already left the independent sector. Their education, and that of thousands of others like them, needs to be considered by this Government. On children who are sitting public examinations this year, my hon. Friend the Member for Sleaford and North Hykeham (Dr Johnson) made a brilliant and serious point, which should be not cast aside but considered: if children studying under one exam board are transferred, in the exam year, to another system, what do they do? What is the Government’s answer?

On the subject of pupils who are applying for education, health and care plans, 34% of pupils at Langley school in my constituency are treated for SEND, and only nine of them have EHCPs. What do those other students do? Surely there should be a delay for pupils who are applying for EHCPs. We have also heard from gallant Members that military families are taking decisions now about their future in the armed services. There are also specialist schools for music and dance, which are important for the fabric of our community and the quality of life in this country; those things are not offered in the state system.
Con
Mr Richard Holden
Basildon and Billericay
Does this not further make the case for the Government publishing in full their assessment of the impact that the measure will have on schools and children right across the country?
Jerome Mayhew
My right hon. Friend is absolutely right. The Government have published no evidence to support their stated objective. There has been no impact assessment. This measure is rushed, and vulnerable children are paying the price for internal Labour politics. Shame on you.
Lab
Alan Gemmell
Central Ayrshire
Fourteen years of Tory neglect have left many of our schools on their knees. The situation is no better in Scotland. After 17 years of the SNP, Scotland’s once world-beating reputation for education has been tarnished. I regularly meet and hear from teachers whose passion and dedication is palpable, including Mrs Boyd and Miss McKay, the primary 6 teachers at Struthers primary school in Troon. Some 21 of their pupils have sent me individual letters asking me to join the fair trade campaign to “Be the Change”. However, over a quarter of children in north Ayrshire now live in poverty. That means that 6,234 children are held back, even before the school day begins. Conservative Members have forgotten about the effects of austerity on constituencies such as mine. They and the SNP are living in their own fantasies.

Having squandered reserves through financial incompetence, SNP-run North Ayrshire council faces £12.6 million of cuts in its upcoming budget. The situation has only been worsened by the council tax freeze imposed by the SNP in Holyrood. The council now proposes cutting 90 teaching posts between 2025 and 2027, and removing a total of 230 hours of pupil support assistance, equivalent to eight full-time staff; all school crossing patrols; one full-time post from the music service; and one full-time educational psychologist. That will be a travesty for children in north Ayrshire, and casts further shame on the SNP’s education record in Scotland.

The independent Institute for Fiscal Studies has said that this VAT policy will raise more than £1 billion, and will see significant additional education spend in England, which means significant Barnett consequentials for Scotland, and for the young people in my constituency. Today’s generation of young people deserve no less, after suffering year after year of excuses. This Government are not prepared to settle for more of the same.
Con
Dr Ben Spencer
Runnymede and Weybridge
Families and schools in my constituency are deeply concerned about this policy. They have contacted me to underline the pressure that it will put on them. Many have already started applying for state school places. Our independent schools reckon that about 5% to 10% of their students will move into the state sector. As we have heard, the measure will have a disproportionate impact on kids with SEND.

In my constituency, roughly 8,000 children are educated in the independent sector. That means a lot of pressure on local state schools. A lot of kids who have their special educational needs met by independent schools are now applying for EHCPs, which means extra pressure on assessments and provision. I support all my schools; I am aspirational for all the children in my constituency. This policy, if enacted—as I expect it will be—will cause great harm.

I would like the Minister to be able to quote back data, analyses and stats to me, and to say, “Ben, you’re wrong. Don’t worry your silly little head—it’s all going to be fine, and here is the data to back it up.” But he cannot; the data is not there because the Government have not done the analysis. This debate has, sadly, been driven by ideology. About one in five children are educated at independent schools in my patch. I must declare that I have chosen independent education for my children.

We will really suffer from this policy. The Under-Secretary of State for Education, the hon. Member for Portsmouth South (Stephen Morgan), is a good man. I know that Members across the House, especially new Members who are finding their feet in this place, are starting to think about policies and decisions going forward. I say to them, as I said to the Minister: “If you cannot see the data and analysis for this policy, please ask why.” Please ask for it.
Lab
Mr Richard Quigley
Isle of Wight West
Listening to the Conservatives and the amount of fearmongering they do, one might think that a previous Government had totally trashed the state sector; I think that is quite obvious.
  13:09:52
Dr Spencer
As I said, schools in both the independent and state sectors are concerned about the policy and the sudden movement of children, in the middle of the year, into the state sector, which will struggle to find them places. Those children may be studying for exams and have already experienced covid disruption, and the state schools that they move to might not have the right courses. I plead with the Minister to look at the data and do the analysis to see if the policy will make money or lose it, and to consider the impact on children.

I go back to the brutal, bitter words of the consultation document that went out this summer:

“The government understands that moving schools can be challenging.”

If I were a child going through my GCSEs or A-levels, and was forced to move into the state sector because of this policy—the analysis of which I cannot see, because the Government have not done it or will not publish it—and I read those words, I would say, “Please delay this policy. Think again. Look at it, and try to mitigate the impact on children with special educational needs, on armed forces families, and of disruption during the school year. Please, if you are not going to stop it, at least delay it and do the working out.”
Lab/Co-op
  15:44:06
Paul Waugh
Rochdale
I congratulate the Conservative party on calling this debate today, for the simple reason that it confirms what many of us already know: that the Tories are much more focused on the 7% of pupils in private school than they are on the 93% in state education. Given that the Tory leadership contest is approaching its exciting climax, it is worth pointing out that state education has got barely a mention in that contest so far—I know it is a minority sport, but we expect better. In the last Tory leadership contest, Liz Truss spent her time either criticising her own state school or criticising the right hon. Member for Richmond and Northallerton (Rishi Sunak) for his time at the £45,000-a-year Winchester college. At one point, one of her team said that

“she will take no lectures in educational standards from an LA-based, Goldman Sachs banker who went to a school for the uber-elite.”

Meow, as my immediate predecessor in Rochdale might say.

David Cameron famously went to Eton; indeed, it was Michael Gove who attacked the “preposterous” number of his fellow Cabinet Ministers who had been to Eton. I am delighted to say that there are more Labour MPs who went to my own state school, Oulder Hill community school in Rochdale, than went to Eton—my hon. Friend the Member for Whitehaven and Workington (Josh MacAlister) and I are both proud of that school tie. Sadly, recent Prime Ministers and even Education Secretaries decided that the state sector for which they were responsible was not good enough for them. During partygate, we got used to the Tory party thinking the covid rules were for other people.
  15:45:04
Claire Coutinho
Will the hon. Member give way?
  15:45:05
Paul Waugh
I am sorry, but I will not give way. I do not have much time.

“One rule for them, another for the rest of us,” was the Tory party’s approach back then. Now, their approach is, “One school for them, another for the rest of us”—that is just as toxic a charge. The real problem is money. There was a 9% fall in spending per pupil between 2010 and 2020. Worst of all, we have had 14 years of no overall growth in spending per pupil in our schools, a squeeze that the IFS said was

“without precedent in post-war UK history”.

Turning back to the Tory leadership contest, most of the contenders for that poisoned chalice have claimed that if elected, they will restore private school tax breaks. The fact that the Tories plan to make another £1.3 billion-worth of cuts to state schools on top of their own record of austerity proves that they have not learned a thing from their catastrophic defeat at the last election. If they all put into state schools an ounce of the passion, the emotion and—yes—the hard cash they put into private schools, the public might start to listen to them again.
Reform
  15:47:05
Richard Tice
Boston and Skegness
The tragedy of this debate is the vitriolic negativity, when all of us could surely unite in our desire to improve the education of all. The Government could have done something so different. They could have said to the independent sector, “You’re doing well, chaps. Can you give us a bit of help? Can you work with us? Can you share more of your expertise, your wisdom, your success and your facilities? In particular, can you help with regard to special educational needs, where the independent sector is doing so well at no cost to the taxpayer?” I think that would have gained universal enthusiasm and support.
Lab
  15:47:00
Nesil Caliskan
Barking
Will the hon. Member give way?
Richard Tice
No, we are short of time.

As a former governor of an independent school, I know that that approach would have been welcomed by the independent sector. Instead, the choice that the Government have made will do the opposite of what they intend. It is not going to raise anything like the funding they think it will: almost 100,000 children will leave the independent sector, many of whom have special educational needs, so it will earn almost nothing.

I spoke earlier about the unintended consequences of this policy. A parent in my constituency has written to me. She has two children with special educational needs at private school, and she cannot afford the VAT, so they are going to go into the state system. The nearest place is an hour away, so now the local authority is going to pick up the cost of the taxi service of over £20,000 per child. Those are the unintended real-world consequences of this choice by this Government. Most shamefully of all, because there is such a lack of capacity in so many areas and so many local authorities, that choice is going to result in bigger class sizes. That means more pressure on hard-pressed teachers in the state system, at a time when we are trying to ease that pressure. This choice is going to damage the education of many hundreds of thousands of children—exactly the opposite of what is intended.

I say to the Minister and his Government that they could choose differently. They could pause this policy, work with the independent sector and gain much more universal support. Instead, we have legal challenges going ahead. As I finish, I ask the Minister to answer this simple question: if those legal challenges end up in the European Court of Human Rights and it rules that the policy is unlawful, will his Government comply with that ruling?
Caroline Nokes
Madam Deputy Speaker
I call Baggy Shanker.
Lab/Co-op
Baggy Shanker
Derby South
Thank you, Madam Deputy Mayor—[Interruption.] I have done it again, haven’t I? I am sorry, Madam Deputy Speaker, but that is my local government background.

Education is the foundation upon which we build the future of our country. It opens doors, breaks down barriers and creates opportunity. Yet today so many of our young people are being left behind by an education system that is struggling to meet their needs. Labour is committed to changing that by driving high and rising standards in all areas in our state schools, ensuring that every child, no matter where they come from, has the same access to excellent education.

When the Tories left office—let us use the word “left”—they also left behind a trail of devastation across our education system. Schools were left crumbling, standards were left falling and they had the audacity to claim that they had “maxed out” on support for our children. We know that that could not be further from the truth. Our state schools are in desperate need of investment, and that is why Labour is making the tough political and fiscal choices necessary to prioritise our children’s future.

One of the toughest yet most significant steps we will take is to levy VAT on private schools and end their business rates exemptions. By doing so, we will generate over £1.3 billion. That money will be reinvested directly into the state education system, benefiting the 93% of children who attend state schools. It is time to put an end to a system that allows a privileged few to enjoy tax breaks while the majority of our children are left with lesser funded schools, and we know that is true.

What will this investment achieve? It will be used to recruit and retain thousands more teachers, ensuring that every child has access to the quality education that they deserve. We will reform Ofsted, improve our schools, and provide early speech and language intervention for our youngest children. Mental health counsellors will be placed in every secondary school, because we understand that a child’s wellbeing is as important as their academic success. We will expand careers advice and work experience, giving students the skills and confidence to shape their own futures.

We know that this works. We need look no further than my own constituency where, as leader of the council, I was proud to introduce the Derby promise. The city of Derby has made—
Madam Deputy Speaker
Order. I am going to call the Front-Bench speakers at 3.59 pm. That means that the remaining Members are not all going to be called, unless they choose to make one-minute contributions, which I cannot recommend to anyone. This is just to alert you that there will be some disappointment.
Lab
  15:55:03
Sam Rushworth
Bishop Auckland
I have come here today to speak on behalf of the children and young people in my Bishop Auckland constituency. I recently spent half a day at an independent school in my constituency, where I spoke with the students, and I have also hosted them here in Parliament. I found them thoughtful and polite, and a credit to their parents and the school. I recognise the role that the school plays in my community. I think it is right that the school retains charitable status, which allows it to claim gift aid on donations and to reinvest surplus revenue without paying tax. I am fully committed to the school and to its fundraising efforts. That is because I want all children in my constituency, whether they attend state schools or fee-paying schools, to have the best opportunities to develop their talents and intellect, no matter their background.

I wish I could say the same of Conservative Members, but their actions in government tell a different story. At a recent roundtable with primary school headteachers in my constituency, I heard stories of school dinner debts of £1,000 per school because they are having to feed hungry children. I heard of children coming into school with wet uniforms because there is no glass in their windows. One teacher talked about having to support children who had experienced horrific abuse but were not getting support through CAMHS. I also heard about children who arrive at school behind where they should be because of the closure of Sure Start.

On social mobility, is it not the truth that the Conservatives scrapped child trust funds? Under them, Sure Start centres were closed down, school playing fields were sold off and the education maintenance allowance was abolished. Apprenticeships are down, youth services have been cut by 73% since 2010 and there is a five-year waiting list for CAMHS. A decade has been lost because every school budget has less funding per pupil today than it had in 2010. Is that not the truth?

Here is another truth—[Interruption.] Opposition Members do not like hearing it, but in the past 20 years, private school fees have increased by 55%. I checked Hansard to see whether we had a debate with them all expressing their concern for the state education sector and about the impact of that increase, but it turns out that when the increase is to make elite education even more elite, they are silent. I see no reason why private schools cannot absorb the cost.
  15:55:22
Gregory Stafford
The hon. Gentleman talks about the elite, but does he understand the impact of the policy he is advocating, which is essentially that the elite, the rich, will still be able to afford independent education, while those who are making sacrifices to be there will be the ones who fall out, especially those with special educational needs?
  15:56:21
Sam Rushworth
I was coming on to that, and if anybody in an independent school is struggling to cut their cloth accordingly as the state sector has done, I could introduce them to headteachers in my constituency who have had to do that because of cuts imposed by the previous Government.

I also suggest that independent schools look at social tariffs and other ways to raise revenue. Nobody wants to be doing this; this is not about the politics of envy. Conservative Members have so far opposed every measure that we are taking to increase revenue or cut spending, and perhaps they need to realise that that is why they are on the Opposition Benches and we are on the Government Benches, as we try to fix state education, which is essential for our children.
Lab
  15:58:09
Mike Reader
Northampton South
I join this debate as the son of educators—my mum, aunties, uncle, and grandad were all teachers in both the state and the private fee-earning sectors, and it definitely makes for interesting conversations round the dinner table. I also join the debate representing both state and fee-paying schools in my constituency, particularly the fantastic Northampton high school, which is part of the Girls’ Day School Trust network and whose students I met in Parliament recently. As a parliamentary candidate for nearly two years and since my election as the Member of Parliament for Northampton South, I have spoken to countless constituents about our long-standing, well documented and consulted on plans to drive up standards in state education. Do you want to know how many of those parents are actually going to move their kids into state schools once I have spoken to them, Madam Deputy Speaker? The answer is zero.

It is right that the Government focus on improving educational standards for those children left behind by the Conservatives, who left a trail of devastation across education, from crumbling schools to a SEND sector in crisis. Their legacy in education should see them hang their heads in shame. When hard-working teachers, teaching assistants and staff reached out, crying out for help, they did not listen. When the independent Institute for Fiscal Studies said that this proposal will raise £1.3 billion for UK taxpayers, they did not listen. As my hon. Friend the Member for Bishop Auckland (Sam Rushworth) said, when fee-paying schools raised their fees above inflation through the cost of living crisis over recent years, leaving families struggling, the Conservatives did not listen. Only now, when there are political points to score and when embossed stationery is at risk, finally they wake up.
  15:58:35
Mr Holden
Will the hon. Gentleman give way?
Mike Reader
I will not—sorry.

No one in this House wants to see the state education sector fail. I am sure no Opposition Member wants to deprive millions of students in the primary state education sector of the healthy nutritious breakfast that they will receive every morning, paid for through this policy. I am certain that all Members on the Opposition Benches want dedicated mental health support in every school, paid for through this policy. I am almost certain that there are those on the Opposition Benches who want to vote with their conscience rather than the Whip, so I urge Members from all parties to vote against this political statement and to support the Government that the country chose to break down barriers to opportunity. It is what our constituents want.
Con
  15:59:32
Nigel Huddleston
Droitwich and Evesham
It is an honour to follow Citizen Smith over there.

In the large number of contributions today, we have seen the importance of this issue and the alarm felt by many Members and their constituents about the Government’s proposal. I am sorry to say that we have also had a lot of 1970s politics of envy today. We believe in evidence-based decision making, and as many Members have pointed out, it is becoming increasingly clear that Labour’s planned education taxes—removing VAT and business rate exemptions from independent schools— will not do what is claimed.

I will move on to the details in a moment, but may I first congratulate those who have delivered their maiden speeches today? I thank them all for making gracious comments about their predecessors. I learned something about each of them today. The hon. Member for North East Derbyshire (Louise Jones) spoke eloquently and lovingly about her beautiful constituency, as did my hon. Friend the Member for Isle of Wight East (Joe Robertson), who brought back many holiday memories for me. The hon. Member for Glasgow East (John Grady) gave us all good advice on naming children in Glasgow. The hon. Member for Tipton and Wednesbury (Antonia Bance) may or may not be aware that we share something in common, as we were both student union sabbatical officers, although in my case a few years earlier. The hon. Member for Horsham (John Milne) gave perhaps the most eclectic speech today, mentioning Daleks, potholes and Ann Widdecombe all in one speech.

I am afraid that I will not be so gracious about some other comments we have heard today from Government Members, who still do not seem to realise that they are now in government and their job is to talk the country up. They have constantly talked down not only the country, but the education system. Let me remind them that when we left office, education standards were going up and per pupil funding was at record levels. In contrast, when Labour was in office, we were falling in the league tables. What a brass neck Labour Members have, when we look at Labour’s record in Wales. We have been backing our brilliant teachers, and I would hope that they would do the same.

The motivations behind this policy are clearly questionable. The impact assessment is non-existent and the savings illusory. There are so many potential unintended consequences and uncertainties around these policies that, at the very least, the Government need to postpone implementation, although it would be better to scrap the plans altogether. They are also moving away from a long-held principle that we used to agree on across the House that educational services are not taxed at all. It is a terrible thing that they are now bringing in.

We have five key categories of concern: the impact on state schools; the impact on Government finances; the timing of the proposals; the consideration of exemptions; and the impact on SEND and EHCPs. I will not repeat all my comments from the debate we had earlier, but it is so clear that this policy will not only have a detrimental impact on the independent schools sector, but negatively impact the state sector, because the imposition of a 20% VAT hike overnight will mean that some families will no longer be able to afford the fees. Inevitably that will mean children leaving the private sector and moving to the state system, putting an additional burden on many local state schools, some of which do not have the capacity. As I said this morning, it is not fearmongering or scaremongering; it is happening already and we are already seeing it in schools. According to some forecasts, instead of the predicted £1.5 billion saving, this policy could cost the taxpayer money.

How extraordinary to choose this policy area to try to eke out some cash when so many other options are available, if the Government were brave enough. Out of total Government spending of more than £1.2 trillion, is this really the policy that they want to prioritise?

On the topic of overall Government finances, we have not yet heard clearly whether the Department for Education will get more funding from the Treasury if the number of state school pupils exceeds expectations. Will they be expected to pay it out of existing budgets? Have the Government set aside capital for additional school spaces if it is needed?

Regarding the timing of the proposals, many Members have mentioned that it is beyond belief that the Government are bringing in this policy in the middle of the school year, when schools are simply not ready for it. It is not fair on the independent sector to expect schools to get their heads around new legislation, register for VAT and implement new systems and processes in literally a matter of weeks and before Christmas. That will not happen. We have also not heard whether the Government will create exemptions or special considerations for all these areas: military families, students on music and dance schemes, children attending small schools, language schools or religious schools, those paying low fees or on bursaries, and children in exam years who may have to move to another school that does not offer their curriculum.

What are the Government doing about pupils with special educational needs and those with an EHCP or in the process of gaining one? If, as many predict, there is a displacement of children with SEND and EHCPs into the state sector, is there the capacity for that? Is there adequate additional funding support planned for local authorities to deal with that predicted increase in demand?

I wish to make a couple of other brief points before concluding. As a Conservative, I believe in choice, and I will not criticise choices made by parents about their children’s education. I have no qualms, however, about criticising hypocrisy. The irony that I stand here as a proud product of a state comprehensive education defending independent schools while the Exchequer Secretary to the Treasury who spoke earlier, a product of a private education, is pursuing a policy that could undermine independent schools is not lost on me or others. Many Government Members attended independent schools or sent or are sending their own children to them, and yet they are determined to increase the costs on others, depriving many families of the choice they themselves had.

I am glad to see the Secretary of State for Education now in her place after being conspicuously absent. Perhaps she will take the opportunity to apologise for the tweet. Parents who send their children to independent schools pay twice for their children’s education and deserve better than to be treated with contempt by their Government’s Education Secretary. The divisive tweet that she put out last weekend was shockingly ill-judged and ill-informed, sneering and smirking about embossed paper and swimming pools. Does she really not understand or recognise that not every independent school is like Eton or Harrow? It betrays an incredible lack of awareness and poor knowledge of the facilities and financial status of many independent schools. It demonstrated that the policy is being promoted not on evidence but on envy and spite—ill-informed and misplaced envy at that.
  16:06:49
Simon Hoare
I agree entirely with what my hon. Friend has said. Will he add to the indictment of the Secretary of State the fact that she failed signally to realise that she is the Secretary of State for all pupils, whether they are in the independent or the state sector? The divisive language that she used was a very rude signal of two digits to those families who take a decision that she does not like.
  16:07:49
Nigel Huddleston
My hon. Friend puts it well. I do not have to add to his comments.

This is a rushed and ill-judged policy that will not raise the money the Government assumed it would, undermine the viability of many independent schools, put immense pressure on the state school system and put in jeopardy the education prospects of thousands of students, including many with special needs. We implore Ministers to reconsider.
Stephen Morgan
The Parliamentary Under-Secretary of State for Education
I thank the Opposition for bringing forward the debate. While the focus has been on private schools and the implications of the planned tax changes, it has allowed us to consider what is important in education. It is important to support the aspirations of all young people and their parents, and it is essential that all young people receive a good education in a safe and supportive environment.

It is certainly true that many parents choose to seek that provision in the private sector. The Government will always support their right to choose where to educate their children, but most parents do not have that choice, and all parents have high aspirations for their children. We therefore need to prioritise our efforts and consider how we can better serve the 94% of children in our state-funded schools.

Ending the tax breaks on VAT and business rates for private schools is a necessary decision to drive high and rising standards across our state schools and give every young person the best start in life. It will generate additional funding to help improve public services, including the Government’s commitments relating to children and young people.

This money will allow the Government to expand early years childcare for all by opening 3,000 new nurseries, thus helping parents back to work. The Government will recruit 6,500 new teachers and improve teacher and headteacher training as part of restoring teaching to the career of choice for the very best graduates. The Treasury is of course responsible for tax policy and has led on the publication of the draft legislation and technical consultation since July. As the Exchequer Secretary set out, VAT will apply to tuition and boarding fees charged by private schools for terms starting on or after 1 January 2025. It is right that we end tax breaks as soon as possible to raise the funding needed to deliver those educational priorities. The Treasury is assessing the impact of these changes in advance of the Budget. The independent Office for Budget Responsibility will certify the Government’s costings for these measures at the Budget and that will also include the interaction with other VAT receipts.
  16:10:30
Kit Malthouse
Will the Minister give way?
  16:10:47
Stephen Morgan
I am going to make some progress. The right hon. Gentleman spoke earlier. I know that many Members are concerned about children with SEND. [Interruption.] Members can shout as much as they like, but I have some really important points to make about SEND. I know I speak for the country—the right hon. Gentleman certainly does not. I assure Members that the Treasury has sought to ensure that these changes do not disadvantage pupils who need provision that is unavailable in the state sector.

Let me be clear: pupils who need a local authority-funded place in a private school, including those with a local authority-funded EHCP, will not be affected by the changes. That is because local authorities are able to reclaim VAT when they are charged. For other pupils, this change should not mean that they will automatically face 20% higher fees. The Government expect private schools to take steps to minimise fee increases, including through reclaiming VAT incurred in supplying education and boarding. I also note that IFS analysis shows that the number of children in private schools has remained steady despite a 20% real-terms increase in average private school fees since 2020 and a 55% rise since 2003.

Members from both sides of the House mentioned transfers to the state-funded sector. There are always some pupils moving between the private and state-funded school sectors. Approximately 50 maintained private schools close every year, for a range of reasons. Where schools do close, pupils may transfer to another private school or move into the state sector. We simply do not accept, in the case of recent closures, that this has had any connection to our policy on VAT. Quite simply, the evidence does not bear that out. The number of pupils who might switch following these changes represents a very small proportion of overall pupil numbers in the state sector. Any displacement is likely to take place over several years, and will mostly come from parents choosing not to place their children in the private sector to begin with, rather than children leaving the private sector. All children of compulsory school age are entitled to a state-funded school place if they need one. I understand that moving schools can be a challenging experience, and local authorities and schools already have processes to support pupils moving between schools.

A number of Members also raised concerns about capacity. There are always a range of pressures on state-funded school places, and the Department for Education works to support local authorities to ensure that every local area has sufficient places for children who need them. That is business as usual and local authorities and schools already have a range of options to increase capacity where it is needed. We are confident that the state sector will be able to accommodate any additional pupils and that there will not be a significant impact on state education as a whole.

I congratulate my hon. Friend the Member for North East Derbyshire (Louise Jones) on her maiden speech. I know she will be a real champion for children and young people in her community. I also welcome my hon. Friend the Member for Bury North (Mr Frith) back to this place and congratulate my hon. Friend the Member for Glasgow East (John Grady) on his maiden speech—he spoke eloquently and with passion about his constituency and the needs of his constituents. It was also a real pleasure to hear the maiden speech from the hon. Member for Isle of Wight East (Joe Robertson), who described so well his beautiful constituency, a place I enjoyed holidaying in as a child. I look forward to working with him on issues affecting the Solent region. My hon. Friend the Member for Tipton and Wednesbury (Antonia Bance) gave an excellent maiden speech. It was evident that she will be a strong voice in this place, nationally and for her community. I congratulate the hon. Member for Horsham (John Milne) on his maiden speech, and I wish him well on his unexpected new role in this place and on delivering opportunity for all.

The hon. Member for South Shropshire (Stuart Anderson) and others mentioned military families; I know that colleagues in the Ministry of Defence and the Foreign, Commonwealth and Development Office will closely monitor the impact on affected military families, considering support via the continuity of education allowance scheme. Small faith schools were raised by a few Members; those schools meet the needs of dedicated faith communities, often at low cost. I know that Treasury colleagues have met representatives from those schools to ensure fairness. A number of right hon. and hon. Members spoke about the impact assessment. As my hon. Friend the Exchequer Secretary to the Treasury set out, we are considering the impact of the policies and will publish a tax information and impact note at the Budget in the usual way.

In conclusion, this Government were elected to deliver change across our country, not least in our schools. Our mission to break down the barriers to opportunity is exactly what our country needs. This party is showing that education is once again at the forefront of national life. I urge Members across the House to demonstrate that by voting against the motion.

Question put.

The House proceeded to a Division.
Caroline Nokes
Madam Deputy Speaker
Will the Serjeant at Arms investigate the delay in the No Lobby?
Division: 16 held at 16:15 Ayes: 190 Noes: 363

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