Taxing Education Will Only Stifle Aspiration
As the Member of Parliament for Solihull West and Shirley, I am dedicated to promoting a Britain that supports ambition and opportunity for all. One of my core beliefs is that hardworking parents should have the freedom to choose where they send their children to school. Currently, independent education without VAT helps make that choice a reality for many.
However, when the Labour Party announced before the General Election that their flagship policy would be to introduce VAT on independent schools, it became clear they lacked confidence in their ability to drive economic growth. Instead, they turned to new taxes as the solution to fund their spending programme. The policy, due to take effect in January 2025, is particularly troubling as it will be introduced halfway through the school year, adding unnecessary disruption.
This tax on education is ill-conceived, and the consequences for local families will be severe. Over 100,000 children could be forced into state schools, which will increase class sizes, reduce the quality of education, and place immense pressure on our state schools. The cost to the taxpayer could be as much as £1.6 billion.
The policy will have a damaging impact on the education of many children, and the Government seems blind to the fact that a significant number of pupils in independent schools have special educational needs and disabilities (SEND). These schools provide specialist support tailored to the individual needs of these students, ensuring they receive the best possible education. With a 20% hike in fees due to VAT, many parents may no longer be able to afford this vital provision.
Another serious oversight is the effect this tax will have on Armed Forces families. Many service personnel send their children to independent schools to ensure a stable education amidst the frequent moves and deployments their work demands. These families often rely on the Continuity of Education Allowance (CEA) to support their children’s schooling.
Our servicemen and women sacrifice so much to keep our country safe, and the CEA allows them peace of mind that their children’s education will not suffer due to the upheavals of military life. Particularly in crucial exam years, this continuity is essential. In September, I wrote to the Chancellor to highlight the impact VAT on independent schools will have on families receiving CEA and requested that the fund be ring-fenced to offset the 20% increase in fees.
This new tax on education threatens to undermine ambition and opportunity. We surely must resist policies that stifle aspiration but instead focus on solutions that genuinely support growth, opportunity, and the future for our children.
