The Chancellor must announce a reprieve for military and diplomatic families from its VAT raid on private schools, a Conservative peer is urging.
Ten days before the Budget, Lord Kempsell has written to Rachel Reeves warning Labour ‘should not be punishing military families at a time of such global instability’.
He describes the 20 per cent VAT rise on private school fees, set to come in from January 1, as a ‘badly designed policy’.
Many Service parents who regularly relocate for their jobs send their children to boarding schools to give them a stable education. Eligible families get the Continuity of Education Allowance (CEA) from the Government, which currently pays up to 90 per cent of school fees.
But families who rely on the allowance remain in the dark over whether they will be hit for the higher costs of their children’s schooling and be ‘priced out’ of the market.
Rachel Reeves has been urged to exempt military and diplomatic families from the planned VAT raid on private schools
Conservative peer Lord Kempsell said the Chancellor should not punish military families ‘at a time of such global instability’, describing the tax raid as a ‘badly designed policy’
In his letter the peer wrote: ‘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.’
He told the Chancellor he has received emails from parents ‘fearing they will no longer be able to afford to send their children to boarding schools while deployed if no exemption or rebate is in place.
‘They may have to surrender the career they love,’ he adds.
The Government has examined options for how to mitigate the tax on Forces families, including a VAT exemption for those receiving CEA.
But ministers have so far refused to say whether they will introduce an exemption or boost the allowance to cover the rise.
A Government spokesman said: ‘We want to ensure all children have the best chance in life to succeed. Ending tax breaks on private schools will help to raise the revenue needed to fund our education priorities for next year, such as recruiting 6,500 new teachers.’