PARLIAMENTARY WRITTEN QUESTION
Private Education: VAT (4 October 2024)

To ask the Secretary of State for Education, whether she has had discussions with the Chancellor of the Exchequer on the potential impact of the introduction of VAT on independent school fees on funding for state schools.

Asked by:
Ben Obese-Jecty (Conservative)

This government is committed to ending the VAT exemption that private schools enjoy and will confirm the introduction of these changes at the Budget on 30 October. The Office for Budget Responsibility will also certify the government’s costings for these measures at that time. The right time to discuss any funding for state-funded schools is at the Spending Review.

To note, analysis by the Institute for Fiscal Studies assumes a net gain to the public finances of £1.3 to 1.5 billion per year in the medium to long run as a result of removing tax exemptions from private schools. This would allow for about a 2% increase in state school spending in England. This analysis can be found here: https://ifs.org.uk/publications/tax-private-school-fees-and-state-school-spending.

Answered by:
Stephen Morgan (Labour)
17 October 2024