Lord Ross Kempsell has written to Rachel Reeves urging her to exempt military families from their plan to put VAT on private school fees.
Lord Kempsell posted to X:
Labour must exempt military families from their plan to put VAT on private school fees - they rely on these schools when deployed I wrote directly to Chancellor @RachelReevesMP ahead of the imminent Budget - it would be easy to announce and give clarity.
Lord Kempsell's letter to Rachel Reeves in full:
Rt Hon Rachel Reeves MP Chancellor of the Exchequer HM Treasury
1 Horse Guards Road London
SW1A 2HQ
HOUSE OF LORDS LORD KEMPSELL
17 October 2024
Dear Rachel,
I am writing to you regarding the Government's plans to impose VAT on private school fees and the impact this will have on UK armed forces and diplomatic families.
These families currently receive some support towards a private education for their children to minimise disruption to their education when the parents are deployed.
But your plan to impose VAT on school fees has not been matched by an uplift in that support meaning our brilliant Armed Forces and diplomatic families are now facing a shortfall.
That is why I am campaigning for these families to be made exempt from your VAT plan, and have asked the Government multiple times in Parliament how it will mitigate the impact of the proposed policy. I was grateful your colleague, the Exchequer Secretary to the Treasury, recently took the time to discuss this with me.
However, we are now approaching the Budget and an exemption has not yet been confirmed. Military families have already had to wait too long for clarity on the Government's plans, causing real anxiety and leaving them in the lurch.
I have been receiving emails from worried military families fearing they will no longer be able to afford to send their children to boarding schools whilst deployed if no exemption or rebate is in place.
One family told me the CEA is a 'genuine lifeline' for them. But under this policy, their parental contribution would rise by tens of thousands of pounds. As such, they fear they will have to surrender the career they love.
Alarmingly, 70% of military families surveyed said they would have to consider leaving their role if there was no exemption or mitigation.
I know you agree with me that the government should not be punishing army families, especially at a time of such global instability. This is a probably unintended consequence of a badly designed policy which you have the power to fix at a stroke of your pen.
That is why I am urging you to use the Budget in just 13 days' time to announce the following:
1. An exemption for all service and diplomatic families exempt from this VAT charge, whether in receipt of CEA or not;
2. Or, if such an exemption is not planned, a rebate for these families - or (at least) changes to the design of the Continuity of Education Allowance, so that families are not impacted.
These measures are not difficult to put in place - according to a parliamentary answer sent to me by the Ministry of Defence, 2,666 armed forces personnel and 328 diplomatic families are in scope.
I believe that if appropriate measures are put in place, then the Government would be fulfilling its duty to service families who make huge sacrifices for the UK and our defence and security.
Please exempt our military heroic families and exceptional diplomats from your VAT on school fees now.
Yours sincerely.
Ross Kump
Lord Kempsell
https://twitter.com/RossKempsell/status/1847548385135312929
You can also read more in the Mail Online.
