PARLIAMENTARY WRITTEN QUESTION
Private Education: Special Educational Needs (9 October 2024)
Question Asked
Asked by:
Chris Hinchliff (Labour)
Answer
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.
Children with education, health and care plans that provide a necessary local authority funded place at a private school, will not be impacted by this policy. This is because local authorities can reclaim VAT on service expenditure through existing routes.
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)
18 October 2024
Contains Parliamentary information licensed under the Open Parliament Licence v3.0.