Education Secretary Bridget Philipson has defended the Government's controversial private school tax policy despite acknowledging 31 school closures, telling GB News host Camilla Tominey the measure was "worth it" to fund state education improvements.
During a heated exchange, Camilla grilled the Labour MP on the policy, saying: "You can't be happy with a situation where 31 schools have closed and, presumably, teachers have lost their jobs? You can't be happy with that, surely?"
Labour removed the VAT exemption in January and ended business rates relief for independent schools in April, meaning that parents are expected to bear the additional costs to put their children through private education.
The policy has faced sustained opposition from the sector, particularly regarding its impact on smaller, specialist schools that are already financially stretched.
Bridget Philipson faced a fierce grilling from Camilla Tominey
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Speaking on GB News, host Camilla Tominey said: "At the beginning, Labour said that you were putting VAT on private school fees to fund teachers. We then had a series of tweets from Keir Starmer suggesting that the money is actually funding affordable housing.
"So what exactly is the money raised from the VAT hike going towards? Is it funding teachers, or is it going towards a range of other Labour policies?
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Bridget Philipson responded: "The amount of money that will be raised by the end of the Parliament is around £1.8billion from VAT on private schools.
"Through the Spending Review and actually through the Budget, we’re already investing more beyond that.
"When you raise tax, of course, that money goes into the Treasury, and decisions are taken about how it is spent. But through the Spending Review, we’re now investing more in schools, in colleges, and in rebuilding more schools.
"Alongside that, we’re expanding free school meal eligibility to more children, the biggest expansion in a generation which actually far exceeds anything we’ll raise through VAT on private school fees.
"But I do think it was the right decision to raise money and reinvest in state education, and that is precisely what we’re doing.
"We’re also investing more, for example, in social and affordable housing. These are all decisions taken through the Spending Review and demonstrate our determination to build a better and fairer country.
Camilla fumed: "Okay. But when you talk about a better and fairer country, the VAT on private school fees has adversely affected private school pupils, hasn’t it? We’ve seen school closures rise by 67 per cent.
"Eighteen private schools closed in 2024. Today, that figure is 31. And apparently, that’s disproportionately affected children with special educational needs. So, as Education Secretary, was it worth it to see schools closing down?"
The Education Secretary explained: "Private schools are private businesses. They open and close all the time, that’s been the case for decades. It’s not a new phenomenon. What I’m determined to do is ensure we continue to invest more in state education.
"Now, I’m always happy to answer any questions you have on this or any other topic, and I’ll answer them as directly as I can.
Camilla explained that the issue affects her on a personal level
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"But I do have to say, we’ve gone around this issue a few times in the past. Ultimately, the vast majority of people watching this will be sending their children to state schools, and what they want to know is how we’re improving standards and delivering more teachers to those schools, which we are."
Camilla explained that the issue affects her on a personal level as she sends two of her children to private school in Hertfordshire.
She told the MP: "Just for clarification, I’ve got a foot in both camps. I send one child to a state school and two children to private schools, so I can see it from both sides.
"The problem is that in areas like mine in Hertfordshire, where state schools are already oversubscribed, if private school pupils can no longer afford to stay in private education, they end up applying to state schools. That creates more pressure on the state sector, so it is relevant. There has been an exodus from private schools.
"But just in general, as Education Secretary, how can you be happy with a situation where 31 schools have closed and, presumably, teachers have lost their jobs? You can’t be happy with that, surely?"
Bridget Philipson said: "Private schools are private businesses. They make their own decisions about their funding models and who they appeal to. But again, as I’ve said, we have more private schools this year than last.
"And when it comes to movement between different parts of the sector, I’d also point out that on secondary school offer day this year, when parents received their offers, we actually saw an increase in the number of first-choice placements being offered.
"So some of the scaremongering and predictions that this policy would have a terrible, devastating effect just haven’t materialised."