Labour MP: VAT charge on private schools could make elitist system more elitist
The amount of VAT imposed on private schools should be based on turnover, to prevent smaller schools getting 'caught in this trap', a Labour MP has said.
Rupa Huq raised concerns the Government's policy to apply 20% VAT to private school education and boarding fees could make an 'elitist system more elitist'.
The policy, which came into effect earlier this year, is aimed at raising money to fund state schools.
During a debate on the VAT changes, Ms Huq, who attended a private high school, said parents with 'genuine concerns' should not be demonised.
Speaking in Westminster Hall, the MP for Ealing Central and Acton said: 'As a parent, I would never dream of going private, but I can understand and accept that people do do this.'
She added: 'I can completely appreciate that people like my own parents at the time, make – and (Labour MP Alison Taylor) mentioned this as well – enormous sacrifices to send their children there.
'And I've heard this on the doorstep, you know 'we have the worst car, we never go on holiday', that was me in the 80s.'
She continued: 'These are people who consider themselves working people, so again, the strap line of the Labour manifesto was no taxes on working people. So I think we should be careful with our rhetoric sometimes.'
Ms Huq went on to say: 'The problem is the word private school implies a whole load of things, they are not all Eton. And some of the comms around this I think hasn't been done very sensitively.'
Get a free fractional share worth up to £100.
Capital at risk.
Terms and conditions apply.
'You get your smaller Send school, you get your smaller faith school, those kind of people, they're not all Eton is what I'm trying to say, and I think some of these comms are based on a caricature.'
Ms Huq said there could be 'unintended consequence' from the change and the policy will 'hand schools like Eton money back from Treasury coffers'.
She added: 'These elitist private schools, Eton, they've actually done quite well out of this, because they can cash in on windfalls from these new VAT rules.'
Intervening, Conservative MP for Windsor Jack Rankin, who has Eton in his constituency, said some of the points on Eton were 'a little bit unfair' because they 'do a lot in my community'.
Ms Huq replied: 'It's interesting to learn that, but they are still are going to be quids-in after this.'
Also intervening, Liberal Democrat MP Rachel Gilmour (Tiverton and Minehead) said: 'Will you give it up all this stuff about Eton? I speak as the mother of two old Etonians.
'I was a single parent, I worked three jobs. When (Damian Hinds) said there's more money from the old Etonian parents, there certainly aren't, not from this one.
'Eton hands out 100 boys plus a year completely free fees, they don't even have to pay for their pencils.'
Earlier in the debate, Conservative former minister Damian Hinds said 'there is probably plenty of VAT to be had from the parents of boys at Eton' but the Government has 'ignored' the concerns of low-fee faith schools or schools for children with special educational needs and disabilities.
Ms Huq later said: 'My worry is it will just make an elitist system more elitist.'
Intervening, Conservative MP Gagan Mohindra (South West Hertfordshire) said: 'What does she expect her Government and party to do then?'
Ms Huq replied: 'What I would suggest is possibly doing it on a turnover basis. So for your enormous schools that can afford it: yes. But then for the smaller ones that have been caught in this trap: no.'
Treasury minister Torsten Bell said: 'No one during this session is judging other parents' choices … the best education for children is also what motivates the Government to break down barriers to opportunity, ensuring every child has access to high-quality education.
'Every child includes the 94% of children that attend state schools. The reforms we debate today, to VAT and business rates, will raise around £1.8 billion a year.'
Mr Bell said the argument that private faith schools should be exempt is 'not compelling'.
He added: 'An exemption would reduce the revenue available for pupils in state schools, including those of faith.'
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
South Wales Argus
an hour ago
- South Wales Argus
Senedd called to act on 'existential crisis' of abuse
Plaid Cymru's Adam Price, the first out-gay man in his party to be elected to national office, warned prejudices based on sex, race and sexual orientation have been reinvigorated. He told the Senedd: "It is getting worse by the day, and it really represents an existential crisis for our democracy and our society." Mr Price said: "For our democracy to be effective, it has to be diverse. "Diversity trumps ability. "It's a piece of evidence in social science." The former Plaid Cymru leader called for a focus on representation of trans women and men, a community "under siege," to ensure their voices are heard in the Senedd. Mr Price highlighted harmful comments below news stories involving him in recent weeks. "That certainly won't deter me and I hope it won't deter anyone else," he said. "But we've got to do something about it collectively, haven't we?" Labour's Hannah Blythyn expressed concerns that Wales could go backwards in terms of equality of representation at the next Senedd election. Ms Blythyn told Senedd members: "I very much made an active decision when I had the opportunity to stand in this legislature because of the make-up – that there were more women here, that it was more representative." Jane Hutt, Wales' social justice secretary, acknowledged the rise of abuse, harassment and intimidation towards politicians, candidates and campaigners. She outlined voluntary diversity and inclusion guidance for political parties which aims to ensure democratic bodies are truly representative of all the people of Wales. Ms Hutt said safety costs will be exempt from spending limits for Welsh elections. Conservative Altaf Hussain warned guidance on equal representation risks crossing a dangerous line. He said: "Equality of access cannot come just by bureaucratic diktats or targets." Plaid Cymru's Sioned Williams said progress on underrepresentation of women in politics has slowed, warning the voluntary guidance was published "far too late." "Wales belongs to everyone," she said. "Everyone must have a voice in our nation's future."
South Wales Argus
an hour ago
- South Wales Argus
Land value tax in Wales could replace council tax and rates
The former first minister said the Welsh Government continues to explore the feasibility of LVT as used in countries such as Denmark and Singapore. Professor Drakeford has long supported a LVT, arguing those who have the privilege of ownership should pay something back for that privilege. LVT is levied on the value of the land rather than the property itself. Proponents argue LVT is easier to collect, more efficient and difficult to avoid, while discouraging speculation and encouraging people to bring idle land back into use. Professor Drakeford told the Senedd: "I am anxious to see this discussion move beyond the theoretical and into the realms of the practically possible. He explained that the Welsh Government has invited tenders to test approaches to valuing land, with submissions for every aspect of the work. The finance secretary said: "I want to use the coming months to test the boundaries of what might be possible in the next Senedd term. "Let's open the door to more radical, fundamental and progressive reform in the future." He added: "The current system is unfairly weighted against those who experience difficulty in paying. "I want to shift the focus from harmful escalation towards supportive prevention." He stated ministers will introduce a new council tax appeals process by April 2026 that will be "easier to navigate and provide a better, modern system for taxpayers". Peter Fox agreed that council tax is regressive by nature "and that it will never really become a fair local tax". Mr Fox accused the Welsh Government of increasing tax on families "by stealth" through underfunding councils which, in turn, pass on the shortfall to people. He called for reform of the "outdated and flawed" funding formula. Professor Drakeford replied: "Almost every local authority in Wales will agree that the formula needs revision – nobody can agree on how that should be done. "The 22 local authorities each believe that the formula uniquely disadvantages them."
South Wales Guardian
an hour ago
- South Wales Guardian
Senedd called to act on 'existential crisis' of abuse
Plaid Cymru's Adam Price, the first out-gay man in his party to be elected to national office, warned prejudices based on sex, race and sexual orientation have been reinvigorated. He told the Senedd: "It is getting worse by the day, and it really represents an existential crisis for our democracy and our society." Mr Price said: "For our democracy to be effective, it has to be diverse. "Diversity trumps ability. "It's a piece of evidence in social science." The former Plaid Cymru leader called for a focus on representation of trans women and men, a community "under siege," to ensure their voices are heard in the Senedd. Mr Price highlighted harmful comments below news stories involving him in recent weeks. "That certainly won't deter me and I hope it won't deter anyone else," he said. "But we've got to do something about it collectively, haven't we?" Labour's Hannah Blythyn expressed concerns that Wales could go backwards in terms of equality of representation at the next Senedd election. Ms Blythyn told Senedd members: "I very much made an active decision when I had the opportunity to stand in this legislature because of the make-up – that there were more women here, that it was more representative." Jane Hutt, Wales' social justice secretary, acknowledged the rise of abuse, harassment and intimidation towards politicians, candidates and campaigners. She outlined voluntary diversity and inclusion guidance for political parties which aims to ensure democratic bodies are truly representative of all the people of Wales. Ms Hutt said safety costs will be exempt from spending limits for Welsh elections. Conservative Altaf Hussain warned guidance on equal representation risks crossing a dangerous line. He said: "Equality of access cannot come just by bureaucratic diktats or targets." Plaid Cymru's Sioned Williams said progress on underrepresentation of women in politics has slowed, warning the voluntary guidance was published "far too late." "Wales belongs to everyone," she said. "Everyone must have a voice in our nation's future."
