Independent Schools: Tax Changes

Lord Caine Excerpts

Wednesday 25th June 2025 Lords Chamber

[Baroness Smith of Malvern (Lab)]

Where a pupil is eligible to have an education, health and care plan and that has allocated them a place in a private school, of course the impact of VAT on those schools will not be felt by those particular students. I think the noble Lord is also making a wider point about the need to ensure that we reform the special educational needs and disabilities system, which has forced too many parents to try to seek support elsewhere when that high-quality education and support for their children should have been available in our state schools. That is what the Government are determined to deliver.

[Lord Caine (Con)]

My Lords, yesterday the oldest independent prep school in my home city of Leeds, Moorlands, announced its closure after 127 years. Twelve days ago, the renowned Queen Margaret’s School in York, which has been educating girls for 125 years, said that it will close on 5 July, three days before another Yorkshire landmark, Fulneck in Pudsey, which opened in 1753. All three cited increased running costs, with both Moorlands and Queen Margaret’s specifically referring to VAT, increased national insurance and the removal of business rates relief as reasons for closure. Like me, the Minister was educated in the state sector, but will she now apologise to governors, staff, parents and, above all, students in many fine schools across the country facing closure for the damage, disruption and distress being caused by this Government’s cruel policies?

[Baroness Smith of Malvern (Lab)]

No, I will not, because once again I emphasise that this was a decision made by the Government in order to be able to invest in the over 93% of our children who are educated in state schools. On the point about school closures, yes, every closure of a school is sad; I can understand why people will be distressed if their school closes. I note, however, that it has always been the case that approximately 50 mainstream private schools close each year and that in fact 79 private schools opened in the last year, whereas on average that has been 75 per year in the last 10 years.