In its manifesto ahead of the 2024 general election, the Labour Party stated that if elected it would remove the current exemption from VAT and business rates for independent schools.
Following the election of Labour, it was confirmed by the new Government that they would proceed with their VAT on school fees policy. The policy is set to start in January 2025, which is halfway through the academic year.
In rebuttal to this policy, Dr Neil Shastri-Hurst MP joined five other West Midlands Conservative MPs in sending a letter to the Chancellor and Education Secretary urging them to scrap their plans.
In a further letter, Dr Neil Shastri-Hurst MP highlighted that there will be a punitive effect upon the education of those from military families in receipt of Continuity of Education Allowance (CEA). The scheme helps children whose lives are regularly disrupted by the frequent postings of their parents. CEA provides military parents with the peace of mind that their child will have a stable education, and allows children to achieve to the best of their abilities by avoiding constant disruption, particularly in important examination years. In his letter to the Chancellor, Neil requested the Government provides ring-fenced funding to the Ministry of Defence to allow for a 20% increase in CEA to mitigate the impact of the Government’s policy. Neil’s letter was co-signed by Lincoln Jopp MC MP, Jack Rankin MP, David Reed MP, Ben Obese-Jecty MP, and Mark Garnier MP.
Dr Neil Shastri-Hurst MP spoke about Labour’s private school VAT raid during a debate in Westminster Hall. He added to the pressure on the Government by addressing the detrimental effect this policy will have on service families.
At the Autumn Budget 2024, it was announced that ahead of the VAT changes on the 1st January 2025, the MOD and the FCDO will increase the funding allocated to CEA to account for the impact of any private school fee increases on the proportion of fees covered by CEA.
This is a welcome U-turn by the Government on their plans to downgrade CEA payments. The result of Dr Neil Shastri-Hurst MP’s campaign gives Armed Forces families the reassurance and stability they deserve on their children's education.