Labour’s plan to tax independent school fees is “simply not going to work”, Labour MP for York Central Rachael Maskell has warned, urging her party to perform a U-turn ahead of Wednesday’s Budget and delay the policy to avoid disruption. Ms Maskell said children with special educational needs and disabilities (SEND), anxiety, mental health challenges and care experience who are forced to move schools would have “nowhere else to go outside of the independent sector” as state schools are “not working for these children”. Lord Lexden, president of the Independent Schools Association (ISA), is also quoted in the article, saying: “These pupils should not in any circumstances have their education disrupted by being forced to move to state schools. I have lost count of the number of desperately worried parents who have been in touch with me since July, in despair.” By Pieter Snepvangers and Madeleine Ross, The Telegraph.
Independent school parents may face a greater fee rise if a national insurance increase is announced in the Budget. The increase would be an “extra tax” for independent schools on top of the government’s VAT on fees policy, said David Woodgate, chief executive of the Independent Schools' Bursars Association (ISBA). Christine Cunniffe, principal of LVS Ascot, said that any cost increases "will inevitably have an impact on fee structures across the sector", while chair of governors at Sands School Diarmid Mackenzie warned: “There's only so far that the system can be squeezed before it starts to fall apart.” By Tara Cobham, The Independent.
Officers and soldiers from all ranks have said they may be forced to leave the military due to the “devastating” VAT policy. In letters seen by The Times, service personnel have warned that they cannot afford a significant increase in boarding school fees, nor would they allow an “alarming” disruption to their children’s education. James Cartlidge, the shadow defence secretary, said: “Experienced service personnel have told me in no uncertain terms that they could quit the armed forces as a result of this tax. This is the last thing the military needs, given the threats we face and when retention is already an issue. The figures show that it would cost more to train new recruits than to protect these families from the fee increase, so there is no excuse for the government to fail to act — they should exempt children of forces families from school VAT.” By Larisa Brown.
The Labour Party's plan to impose VAT on fees has been labelled as an existential threat for some schools in the sector by the headteacher of one of Edinburgh's independent schools. Speaking to BBC News, Anthony Simpson, principal of Erskine Stewart's Melville Schools, said there is "absolute fear" from parents about fee rises once the tax changes are introduced next year. By David Wallace Lockhart.
In a written question to the Ministry of Defence, shadow education secretary Damian Hinds asked what representations had been received on the potential impact VAT on fees would have on the families of military service personnel. In response, minister for veterans and people Alistair Carns said: "At the time of writing, the Ministry of Defence has received 45 letters or emails from Members of Parliament and members of the public on this issue. There have been other additional informal approaches which have not been logged centrally."
In separate questions to the Treasury, Damian Hinds asked what estimate had been made "of the potential cost to the public purse of independent schools reclaiming the VAT on capital items that are less than 10 years old in each of the next five years", and whether the Tax Information and Impact Note, set to be published by the government, "will include the estimated cost to the public purse of independent schools reclaiming the VAT on capital items that are less than ten years old". Responding, Exchequer Secretary to the Treasury James Murray said: "Following scrutiny of the Government's costing by the independent Office for Budget Responsibility, the Government will confirm its approach to these reforms at the Budget on 30 October and set out its assessment of relevant expected impacts in a Tax Information and Impact Note (TIIN)."
Jim Allister, Traditional Unionist Voice MP for North Antrim, asked "whether the addition of VAT to school fees is compliant with section 75 of the Northern Ireland Act 1998". In reply, James Murray said: "VAT is a reserved tax and the VAT changes will apply uniformly across the UK. Section 75 of the Northern Ireland Act 1998 is not engaged by this policy." Hansard.
Writing to The Times, Lord Shinkwin responds to the confirmation that pupils with SEND who do not have an education, health and care plan (EHCP) will be subject to VAT on fees. Sharing his own experience, he says: "As a disabled child who had a scholarship and parents on the staff, I benefited hugely from my education." Lord Shinkwin adds that he asked government ministers "what assessment had been carried out of the support needs of pupils with autism, neuro-diverse conditions or other disabilities forced to move schools as a result of the introduction of VAT, and crucially of the impact on their mental health. Incredibly, their answers show that no such assessment has been made."
In a separate letter, Timothy Straker KC writes that "VAT is a tax on goods and services, with education always having been exempt. That exemption is now to be removed, not by a tax on education but by a tax on private schools. It is wrong in principle to tax on a disguised basis." Mr Straker gives further thought to different approaches to taxation and the expected outcomes. He argues: "If it is thought that some working people make too much money through the supply of private schools, the simple approach is not to impose VAT but to tax profits made through such supply. The predictable consequence of such an approach would be lower school fees with some tax revenue. The predictable consequence of the present approach is higher school fees coupled with adverse educational consequences and doubtful tax revenue."
Both letters can be found halfway down the page.
Tes explores what the Budget announcement on Wednesday 30 October could mean for schools. Rachel Reeves has warned that the government is facing a £22 billion “black hole” in public finances. Reports have been circulating that the chancellor is looking to make tax rises and spending cuts to the value of £40 billion in the Budget. However, she has also said the Budget will promise investment into public infrastructure. Spending plans for schools for 2025-2026 will be laid out, before a multi-year spending review takes place in the spring. By Jasmine Norden.
Robin Macpherson, head of Robert Gordon’s College, writes for Tes on educating boys about positive masculinity. Mr Macpherson asks: "Given how much concern negative male role models cause, why are we not doing more about this at a policy level? An obvious push in schools is to promote careers in 'Heal' (health, education, administration and literacy) to boys." He argues everyone stands to benefit if boys are made aware of 'Heal' pathways, adding: "We need to make the same determined effort in schools and colleges to promote Heal careers to boys that we do in promoting Stem (science, technology, engineering and maths) careers to girls."
