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.

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.”

“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.”

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.”

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.”