MALVERN’S MP has joined a long list of opposition politicians warning of the impacts of Labour’s new private school taxation.
The West Worcestershire MP, Dame Harriet Baldwin, fears the tax to fees in the independent school system will have an impact on the whole school sector.
The MP has contacted the three major independent schools in her constituency following two debates in the House of Commons opposing the imposition of VAT on private school fees.
Dame Harriett had briefings on the impact on pupils who have extra educational needs and are taught in the independent sector as well as the risks to the continuity of education of children in military and diplomatic families.
Dame Harriett said: “The independent school system forms an important part of the wider educational system and some parents will choose to move their children into the state system, leading to larger school classes.
“This is the politics of envy and pursuing the policy of being the only Western country to tax education is an act of educational vandalism that will harm the whole educational ecosystem.”
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.
The Malvern MP added: “I’ve had constructive conversations with local education providers and heard their concerns as well as some of their plans to cope with the changes.
“Of particular concern are the places offered to children with special educational needs where they do not have a formal educational healthcare plan and I am troubled by a potential knock-on effect to both local schools and also the Worcestershire County Council care budget.”
According to government statistics, as of January 2024, 567,000 children and young people had an education, health and care plan (EHCP).
And the percentage of pupils with SEN support but no EHCP increased to 13.6 per cent in 2024, from 13 per cent the previous year. This amounts to over 1.23 million pupils.
Having an EHCP does not guarantee a child will receive support in accessing an independent school place. Children with an EHCP in independent schools account for only 5.7 per cent of all youngsters with a plan.
