BROMSGROVE’S parliamentary representative continues to fight against the taxation of private schools as he forces the issue in a Westminster debate.
Conservative MP Bradley Thomas held a Westminster Hall debate on the government’s decision to remove VAT and business rate exemptions from public schools on Tuesday (October 8).
There are three independent schools in Bromsgrove, including Bromsgrove School which employs more than 600 people locally. Labour’s plans involve a 20 per cent taxation, in line with VAT rates, on public schools from January 1, 2025.
Bradley claims he has been contacted by parents who are removing their children from independent schools, pushing them into the state sector and increasing class sizes.
The Adam Smith Institute has provided a detailed examination of the potential economic impacts of the policy. If 10 to 15 per cent of students transfer, the net revenue could be negligible.
And in a scenario where 25 per cent of students switch to state schools, the tax could cost the government £1.6 billion.
The Institute for Fiscal Studies estimates an effective VAT rate of 15 per cent on fees would only lead to a three to seven per cent reduction in independent school pupil numbers – a fall of about 20,000 to 40,000 pupils.
According to the institute, the exodus would be gradually spread over time.
Speaking following his debate, Bradley said: “The Government’s education tax isn’t just flawed in principle, it will not achieve any of its proposed aims.
“I’m therefore calling to pause and reconsider this with a view to abandoning it. It’s unethical, will damage a British success story and won’t fulfil its stated aims.
“If the Government fails to do so, then I have set out sensible and practical steps they can take to minimise the impact their policy will have on parents.”
Bradley says the VAT taxation should be delayed until the start of the next academic year, with a full consultation and impact assessment implemented beforehand.
The Treasury has recently confirmed the plans will be implemented in January 2025 after previous suggestions it would delay the tax rollout.
The MP also believes very small independent schools need to be assessed and protected from taxation, as do armed forces and diplomatic service families using boarding education.
He added: “Those who rely on boarding education to serve our country should not be penalised.”
Lastly, he believes the definition of private schools should be revised to ensure specialist colleges are excluded, given their unique role and funding structure.
Bradley added: “This is a short-sighted policy which will hit hardest those in society who it claims to be supporting.
“It will damage the wider education sector as a whole, and worsen academic and social inequalities while being a net cost to society, the education sector and the British taxpayer.”
