‘Stop pleading poverty’: Minister attacks private schools ahead of Labour’s Budget VAT raid
29 October 2024, 10:05 | Updated: 29 October 2024, 10:12
Private schools will 'have to cut their cloth in the same way that state schools have', says Wes Streeting
Wes Streeting has told LBC that private schools must stop “pleading poverty” and cut their own fees to prevent "pricing out" parents ahead of Labour’s controversial VAT policy.
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The Health Secretary was asked about children with special education needs and disabilities (SEND) in private schools while talking to Nick Ferrari at Breakfast, slamming "inflation-busting increases" already put in place by institutions.
It comes after Bridget Phillipson, the education secretary, confirmed on Sunday that SEND students who have an education, health and care plan (EHCP) will be exempt from paying VAT on school fees.
However, more than 75% of students with special needs do not currently have an EHCP, which means they will not be exempt from the 20% tax hike.
It comes ahead of Wednesday's Budget, with Chancellor Rachel Reeves "prioritising" funds for the NHS ahead of the major tax raid.
Labour has since conceded that tax hikes and extra borrowing won't be enough to cure the "broken" NHS or "dire" winter crisis.
Health Secretary Wes Streeting joins Nick Ferrari at Breakfast | Watch in full
Mr Streeting put a challenge to private schools, implying that they can reduce the fees they charge to mitigate the VAT rise.
He said: “[the independent school sector] say charging VAT on school fees will price people out”
“I will just say to independent schools: You have hiked your fees up with inflation-busting increases year after year after year since 2010, and now you’re pleading poverty.
“If you’re worried about whether children in your schools will continue to access your schools, you will have to cut your cloth in the way that state schools have had to do.”
Mr Streeting then hit out at the charitable enjoyed by about half of private schools in England and Wales, which meant they were exempt from many taxes.
He concluded: “I’m sure they can take steps to mitigate against children being forced to drop out if they’re the good charities they say they are.”
Wes Streeting on Keir Starmer's 'falling popularity'
He also reflected on the party's popularity given the harsh fiscal measures that need to be taken
Addressing the PMs plunging popularity, Streeting said: "It's not just Keir, all of us."
"Were making decisions that are not going to make us very popular at the moment."
Adding that we need to stop "treating politics as a popularity contest".
The Prime Minister's popularity sank 49 points to a record low of -38, which is even lower than former PM Rishi Sunak's rating of -37 after leading the Tories to a historic election loss in July.
It comes after the Labour MP for York Central, Rachael Maskell, urged the government to perform a last-minute U-turn on one of its flagship policies, claiming that charging private schools 20% VAT “just won’t work”.
Speaking to the Telegraph, Ms Maskell said: “Children with Send, anxiety, mental health challenges and care experience have nowhere else to go outside of the independent sector currently, as the pedagogy within the state sector is simply not working for these children.
“Parents send their children to independent schools out of necessity not choice, and some are working several minimum wage jobs to do so.
“The policy is simply not going to work for these families, so we need a resolution. It is about sequencing and while the Department for Education is wanting to rebuild support for these children there just hasn’t been time."
