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Daily News Summary
30 October 2024

International families leaving Britain over VAT on school fees policy
Parliamentary written questions: VAT on fees
Parents advised to use 'board game metaphors' to teach white children about racism and privilege
New members of the Commons Education Select Committee revealed

International families leaving Britain over VAT on school fees policy

 

Boarding schools may experience a funding crisis as international families leave Britain as a result of Labour’s VAT policy. Visa applications to study at British independent schools dropped by almost 25 per cent in the first half of this year in comparison to the previous period in 2023, government figures show - a decline that could cost the sector up to £50 million. David Walker, director of the Boarding Schools' Association (BSA), said: “Education has always been one of our strongest exports but we cannot assume international parents will buy into UK plc indefinitely. With international student numbers already down, now is not the time to tax education.” By Pieter Snepvangers, The Telegraph.

In an interview with LBC, Wes Streeting accused independent schools of "pleading poverty" over Labour's tax policy, adding: “If you’re worried about whether children can continue to access your schools, you’ll have to cut your cloth in the way that state schools have had to do for over a decade.” The health secretary made the comments in answer to a question on whether children with special educational needs would be exempt from VAT. By Jack Maidment and Jacob Freedland, The Telegraph.

The Independent takes a closer look at the potential for whole nursery classes to be subject to VAT on fees, in the event that one of their pupils is of compulsory school age. Mary Fysh, principal of Avenue Pre-Preparatory School and Nursery, said the VAT policy was the most “destructive and thoughtless” of government plans that have been proposed since she established her small school in 1977. Diarmid Mackenzie, the chair of governors at Sands School, warned: “The additional costs associated with splitting children into strictly separated classes could be the final straw that forces [small independent schools] into closing down, with all the resulting harms and costs that that entails.” Emilie Darwin, deputy CEO at the Independent Association of Prep Schools (IAPS) said: “This mechanism will collectively penalise all others in the class due to the learning or pastoral needs of one child being met and is likely to deter schools from agreeing to hold a child back, even when they would really benefit from it.” By Tara Cobham.

 

Parliamentary written questions: VAT on fees

 

A number of written questions on the VAT policy were answered in both the House of Lords and the House of Commons yesterday. 

Lord Black of Brentwood, president of the Boarding Schools' Association (BSA), asked which other countries charge VAT on school fees. In reply, Lord Livermore said: "Structural differences in countries' education systems mean that there are limited meaningful comparisons that can be drawn between the UK and other nations." In a separate question, Lord Black asked for the government's estimate of "the amount of revenue that will be lost by overseas pupils choosing not to study in the UK" as a result of the VAT policy. Lord Livermore replied: "The Government has carefully considered the impact that changes to the tax treatment of private schools will have on state and private schools."

Lord Black asked the Department for Education (DfE) how many overseas pupils are currently studying at independent schools, and what assessment had been made of the impact of the tax policy on those students. In response, Baroness Smith of Malvern cited data from the Independent Schools Council (ISC) showing that 62,708 non-British pupils attend ISC schools, adding: "The government is working to carefully consider the impact of charging VAT on private schools' fees."

Also on the subject of overseas students, Lord Lexden, president of the Independent Schools Association (ISA), asked the government what data it has on "the number of international students studying in English universities who attended English independent schools, and what assessment they have made of any potential loss of income for English universities as a result of levying VAT on independent school fees". Baroness Smith replied: "The department does hold some information on the type of school attended by students prior to entering higher education in the UK. However, this is only mandatory for UK domiciled students and is optional for providers to complete for international students. HM Treasury will publish a Tax Information and Impact Note that considers the impact of these tax changes at Budget on 30 October." 

Lord Altrincham asked for the government's estimate of the number of pupils who would have to leave independent schools "for expenditure on additional state school places to exceed the additional tax revenue generated". He also asked whether the government had conducted an impact assessment of the policy. In response, Lord Livermore 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. The Government will set out its assessment of relevant expected impacts, including any expected pupil migration, in a Tax Information and Impact Note (TIIN)."

In grouped questions to the DfE, Lord Altrincham asked the government how many additional state school places it estimates will be needed by 2026 to accommodate children expected to leave the independent sector, and what assessment had been made of the impact of the VAT policy on smaller independent schools. In response, Baroness Smith said: "While the impact of this policy is being fully considered, projections by the Institute for Fiscal Studies indicate that the number of pupils who may switch schools as a result of these changes is likely to represent a very small proportion of overall pupil numbers in the state sector, with any displacement expected to take place over several years."

On the subject of special educational needs provision, Lord Altrincham asked what assessment had been made of "(1) the resilience of specialist schools in the face of a reduction in pupil numbers, and (2) the ability of the state sector to deliver a comparable specialist educational service". Baroness Smith replied, saying: "While the government recognises that the VAT and business rates tax policy changes may lead to increased costs for some parents and carers and that some pupils may subsequently move into the state education sector, the number of pupils who may switch schools as a result of these changes represent a very small proportion of overall pupil numbers in the state sector."

The Earl of Clancarty asked whether consideration would be given to support providers of the Dance and Drama Awards Scheme. In response, Baroness Smith said: "The government has engaged with providers involved in the Dance and Drama Awards scheme to discuss the issue of VAT on private education and will consider how best to support young people engaged in this programme following the spending review."

 

In a written question to the DfE, Dame Caroline Dinenage, Conservative MP for Gosport, asked if there was "an estimate of the number of private school pupils with an education, health and care plan who will (a) enter mainstream state education, (b) enter specialist state education and (c) drop out of mainstream education as a result of the proposed application of VAT to private school fees". In response, Parliamentary Under-Secretary (Department for Education) Stephen Morgan said no such estimate had been made, adding: "The department cannot be certain of the precise level, if any, of transfer from private to state sectors additional to the movements between schools, and between the private and state sectors, which happen each year in all parts of the country. The department will monitor demand and capacity using our normal processes and will work with local authorities to meet any pressures."

Jess Brown-Fuller, Liberal Democrat MP for Chichester, asked "whether providers offering Higher-Level studies at Level 6 will be subject to VAT". In response, Exchequer Secretary to the Treasury James Murray said that "all education services and vocational training provided by a private school in the UK for a charge will be subject to VAT at the standard rate of 20 per cent. The Government has no plans to make changes to the VAT treatment of Higher Education."

 

Parents advised to use 'board game metaphors' to teach white children about racism and privilege

 

Local councils in England have shared guidance on how to "raise anti-racist children", originally created for Barbie manufacturers Mattel. It offers advice on how to explain racism to children up to the age of 12, to help them go from being “complicit” in racism to being an anti-racist “ally” who can “acknowledge and understand white privilege”. The guidance also recommends parents use "board game metaphors", for instance giving white children more money in Monopoly and allowing them to "avoid jail", in order to “explain white supremacy and privilege”. By Craig Simpson, The Telegraph.

 
The Telegraph

New members of the Commons Education Select Committee revealed

 

Schools Week lists the 11 MPs who will be on the new Commons Education Select Committee. The parliamentary committee includes seven Labour MPs, two Conservatives and two Liberal Democrats. It will be chaired by Labour MP Helen Hayes, the former shadow children’s minister. The committee has an important role in holding the Department for Education and its executive agencies and arms-length bodies to account. By Samantha Booth. 

 
Schools Week

 

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