Bradley has urged the Government to scrap its education tax in a debate in Parliament.
Today (October 8th), Bradley held a Westminster Hall debate on the Government’s decision to remove VAT and business rates exemptions from independent schools.
There are three independent schools in Bromsgrove and the Villages, including Bromsgrove School which employs more than 600 local people.
Bradley has been contacted by parents who are removing their children from independent schools, pushing them into the state sector and increasing class sizes.
A report from the respected think tank, the Adam Smith Institute, provides a detailed examination of the potential economic impacts of the Government’s policy. If 10-15% of students transfer, the net revenue could be negligible. And in a scenario where 25% of students switch to state schools, the tax could cost the Government £1.6 billion.
In April 2024, the Times reported on the results of a survey that found 71% of respondents to the survey said that rising school fees would have an impact on their choices around private schooling in the future. It found that 26% of parents in its survey said they “would have to remove their children from independent school if VAT was imposed.”
Speaking following his debate, Bradley said:
“I’ve always been and will remain committed to supporting education across the board, including our excellent state schools, and I want all schools to be adequately funded and present opportunities for children from all backgrounds. I say this as someone who was proudly educated in state schools and who cares about the life chances of everyone.
"However, the Government’s education tax isn’t just flawed in principle, it will not achieve any of its proposed aims.
“I’m therefore calling on the Government to pause and reconsider this education tax with a view to abandoning it. Its unethical, will damage a British success story and won’t fulfil its stated aims.
“If the Government fails to do so, then I have set out sensible and practical steps they can take to minimise the impact their policy will have on parents.
“First, the imposition of VAT should be delayed until the start of the next academic year. There has been no proper impact assessment of these policies on state schools, SEND provision, or faith schooling. A full consultation and impact assessment is needed before changes are announced.
“Second, the Government needs to assess how very small independent schools can be protected from VAT and tax changes. They are vital community resources – which are smaller than most independent school and charge much lower fees.
“Third, armed forces and diplomatic service families on Continuity of Education Allowance should be exempt from VAT. Those who rely on boarding education to serve our country should not be penalised.
“And lastly, the Government should revise the definition of "private schools" in the VAT policy to ensure that specialist colleges, given their unique role and public funding structure, are explicitly excluded.
“This is a short-sighted policy which will hit hardest those in society who it claims to be supporting, it will damage the wider education sector as a whole, and it will worsen academic and social inequalities while being a net cost to society, the education sector and the British taxpayer.”
Below you can read Bradley's full remarks from the debate.
"It is a pleasure to serve under your chairmanship, Dame Caroline. This debate matters for various reasons. I have always been and will remain committed to supporting education across the board, including our excellent state schools. I want all schools to be adequately funded to present opportunities for children from all backgrounds. I say that as someone who was proudly educated in state schools and who cares about the life chances of everyone.
"I have secured this specific debate to highlight how Labour’s ideologically driven plan to remove VAT and business rate exemptions for independent schools is an inherently flawed policy. If Labour will not abandon the education tax I will also suggest some improvements that the Government could make to lessen the impact of the policy on pupils, parents and school staff in Bromsgrove and across the country.
"Education is an investment in our future. It is in everyone’s best interests that children are well educated so that they can make an engaged and positive contribution to our society. We do not charge VAT on many types of private healthcare, as that is beneficial when people use their own money to pay for a service that the state would otherwise provide. We do not charge VAT on university or nursery fees, so why should schooling be any different?
"There are approximately 2,500 independent schools in the UK educating more than half a million children. They are often small schools: more than 40% of independent schools have fewer than 100 pupils according to Department for Education data. The reality is that the policy will not fulfil its aims and will displace children mid-education. State education must be funded by the state, supported by taxpayers. The VAT exemption encourages greater use of independent education, reducing the number of state school pupils, meaning more money available per pupil in the state sector.
"The Times recently stated that 71% of parents felt that rising school fees would influence their future decision about independent schooling. Additionally, 26% of parents said they would have to withdraw their children from independent schools if VAT is introduced.
"An Adam Smith Institute report provides a detailed examination of the potential economic impacts. If 10% to 15% of students transfer, the net revenue could be negligible. Alarmingly, in a scenario where 25% of students switch from the independent sector to state schools, the tax could cost the Government £1.6 billion.
"Currently, independent schools’ significant economic benefits include supporting 328,000 jobs, saving £4.4 billion from the education budget, and supporting £5.1 billion in additional tax revenue. They do this while saving the state £4.5 billion by removing the requirement to fund the education of 7% of children as the result of parents exercising this choice. Furthermore, independent and state boarding schools are a unique subset of the schools system, with the additional feature of attracting overseas students to the UK. Some 62,700 pupils are international students in independent schools, making up 11% of the population. This is a key export for the country, adding £2.1 billion to our economy annually.
"Independent schools should be seen as a British success story, both culturally and economically, instead of being discouraged and punished with the imposition of an education tax for socialist ideological principles. Most importantly, the human impact of the policy is stark. The failure of this education tax will not just be academic or financial; it will have a serious impact on families.
"One parent wrote to me:
“As a widowed single mother who works full-time, I make enormous financial sacrifices to ensure my child can attend the same school from age 3 to 18. This stability is not only essential for my child’s development but also enables me to work and contribute to society. This proposed VAT would be devastating for families like mine.”
"Another mother wrote to me and said,
“We also have a daughter who will need to start secondary school in two years. We had hoped for her to attend the same school as her brother but, with no scholarship likely and the addition of VAT, it is simply impossible. This is a painful realisation, and I worry that she will resent the opportunities that we couldn’t give her (but we could give her older sibling).”
"We have yet to talk about the impact on special educational needs and disabilities education. This measure will cause particular problems for children who are in receipt of such bespoke education. Nationally, at least 130,000 pupils in independent schools receive SEND support in mainstream and specialist settings. That is 20% of the pupils in UK independent schools, which is slightly higher than the state school average. Independent schools help to provide additional value-adding capacity to SEND education.
"Independent schools provide additional value-adding capacity to SEND education, as has been acknowledged, and VAT on fees risks their ability to do that. There is simply not the capacity in the state sector to accommodate all those extra pupils, particularly when SEND services are already under pressure.
"We have already seen, in the few months since this Parliament began, several debates highlighting issues of SEND capacity.
"Another mother wrote to me to outline the benefit that independent schools can have for children with SEND needs:
“We moved our autistic child to a small independent school and the transformation was immediate. Classes are small and quiet, and the school is very nurturing and family oriented. It has been wonderful to see her blossom and slowly get more and more involved in school life. We would not have chosen for our daughter to go to private school but there was no suitable state provision available. We are paying a significant amount of money to be able to do this. Adding VAT on top feels like we are being punished twice for having a child that doesn’t fit into the state system, either in mainstream or specialist schools.”
"The comments made by the Education Secretary on Twitter over the weekend epitomise the way in which the mask of this Government is slipping—socialism is revealing its true face—and how reprehensible the policy is.
"Adjacent to SEND schools, we must consider faith education. This education tax will make independent faith schooling unaffordable for many families, hurting the 370,000 pupils who attend independent faith schools in England according to Department for Education figures. It is important that the House notes that fees at those schools are frequently below the independent school average, and sometimes below state per-pupil funding levels. Often the schools have a suggested fee, but the community supports those who cannot afford the full fee by themselves.
"We have yet to talk about military and diplomatic families, who need boarding schools to provide a stable education while parents are deployed overseas; 4,700 children are funded by the Government under the continuity of education allowance, which assists service personnel and diplomatic families in educating their children at boarding school.
"Labour committed in the House of Commons in 2023 that armed forces families need not be concerned about proposals to charge VAT. With the current retention crisis in the armed forces, and the current volatile state of world affairs, the Government need to confirm what impact analysis has been carried out on the effect of taxing education on military personnel.
"We then get into issues around the implementation of the policy. Implementation in January will put pressure on local authorities to find rare and academically disruptive in-year placements. Those will be difficult, as state schools will be full and many will be oversubscribed, with areas that have a high number of pupils attending independent schools having some of the busiest state schools.
"The Government have shown the true intent of the policy over the weekend with the divisive, “us and them” mentality that was revealed on social media.
"I call on the Government to pause and reconsider this education tax, with a view to abandoning it. It is unethical and will damage a British success story. It will not fulfil its stated aims. The policy will not raise significant money, but is being forced through at the expense of state and independent schoolchildren to further the Government’s divisive ideological agenda that so many in this House have recognised.
"If the Government refuse to abandon the policy, there are some sensible and practical steps that they can take to minimise the impact that it will have on parents and children. First, delay the imposition of VAT until September and the start of the next academic year. There has been no proper impact assessment of these policies on state schools, SEND provision or faith schooling; a full consultation and impact assessment is needed before changes are announced. Secondly, assess how very small schools can be protected from VAT and tax changes. They are a vital community resource and charge much lower fees; that should be acknowledged. Thirdly, exempt service families on continuity of education allowance from VAT. Those who rely on independent education to serve our country should absolutely not be penalised. Furthermore, the Government should protect children currently applying for an education, health and care plan, as parents should not be penalised for the delays in the process.
"I would like the Minister to provide clarity on the following points. Will the Government be issuing guidance for state schools on how to deal with applications from parents, to prevent parents from being asked to prove that they cannot afford to fund independent education? During the general election campaign, the right hon. Member for Islington South and Finsbury (Emily Thornberry) commented that state sector classes must increase and that they will just have to cope. What assessment have the Government done to determine whether state sector classes have the resources available?
"When it comes to students transitioning from the independent to the state sector, what provision will there be to prevent disruption to their education in subjects that may not be taught at their new state schools? In the event of academic performance failures due to the disruption caused by transitioning between schools, will academic leniency be granted to students? I also seek clarity on what funding and support will be made available for students with special educational needs who are transitioning between the independent and state sectors.
"I hope that the House will clearly appreciate that this short-sighted policy will hit hardest those in society who it claims to be supporting, that it will damage the wider education sector as a whole, and that it will worsen academic and social inequalities while being a net cost to society, the education sector and the British taxpayer.
"I thank every single Member who has spoken today in this debate, and I particularly thank the families in attendance who are affected by this policy. We have heard Members talk about the concerns of the impact of the policy on capacity, SEND and simply the element of choice, as well as human stories of how this policy will impact many families and children across the country. I am disappointed that an Education Minister has not attended and instead a Treasury Minister has. The Minister has demonstrated that he can read Labour’s political script but has sadly lacked the courage to answer the points that have been raised in this Chamber.
"To sum up, we have heard words such as “cruel”, “sacrifice” and “disruptive”, as well as concerns from families that their children’s performance will suffer in schools. In short, this is a joyless, mean-spirited policy from a joyless, mean-spirited Government, and I think it is evident from the lack of Labour Members present that they probably agree with the sentiments expressed on this side of the Chamber."
