Consider reversing VAT raid on private schools when economy grows- Rupa Huq

Labour is facing calls from within its own ranks to reconsider its tax policy on private schools once economic growth improves.

Dr. Rupa Huq, MP for Ealing Central and Acton, criticized the proposed 20% VAT on independent school fees, arguing that it unfairly burdens "working people."

While acknowledging Labour’s stance that the policy is a "tough but necessary decision," she pointed to the party’s broader economic growth plans and urged the government to reconsider its approach.

Dr. Huq suggested a more flexible system based on a school's turnover rather than a blanket tax, warning that smaller institutions could struggle under the policy.

Speaking in the Commons, she proposed: "Once growth is achieved, could this policy be reconsidered? Perhaps a turnover-based system could be introduced—where larger, wealthier schools pay, but smaller ones are exempt."

A former private school student herself, she argued that not all institutions are as affluent as Eton and that the debate often relies on misconceptions.

She highlighted the strain on smaller schools, particularly those supporting children with special educational needs and disabilities.

Although she affirmed she would "never" send her own children to private school, she acknowledged the sacrifices many parents make for private education and insisted they should not be "demonized."

Dr. Rupa Huq further argued that ministers had failed to strike the right tone with their VAT policy, which she said had negatively impacted smaller institutions, including faith schools and specialist schools for children with special educational needs and disabilities (SEND).

She shared concerns from constituents, saying: "I've heard from families who say, 'We have the worst car, we never go on holiday'—that was me in the 80s. These are people who see themselves as working-class, yet Labour’s manifesto promised no tax increases for working people. We need to be mindful of our messaging."

Dr. Huq also warned that the policy had an "unintended consequence," allowing wealthier private schools to benefit financially by reclaiming VAT on capital expenditures such as buildings and equipment.

"Ironically, elite schools like Eton have gained from this policy, as they can capitalize on these VAT rules to secure financial windfalls," she said. "My concern is that this will only make an elitist system even more exclusive."

Conservative MP Jack Rankin, whose Windsor constituency includes Eton, pushed back, calling some of Dr. Huq’s remarks about the £63,000-a-year school "unfair," emphasizing that it contributes significantly to the local community.

Former Tory cabinet minister Damian Hinds acknowledged that "there is likely plenty of VAT revenue to be collected from parents at Eton," but criticized the government for "overlooking the struggles of low-fee faith schools and those catering to children with SEND."

However, Liberal Democrat MP Rachel Gilmour countered, sharing her personal experience: "As a single parent, I worked three jobs to send my two children to Eton."

Liberal Democrat MP Rachel Gilmour pushed back against Damian Hinds' suggestion that there was significant VAT revenue to be gained from Eton parents, saying, "There certainly isn’t—not from this one."

She added, "Eton provides full scholarships to over 100 boys each year, covering all costs—including school supplies."

Speaking for the government, Treasury minister Torsten Bell dismissed arguments for exempting faith schools from the VAT policy, stating they were "not compelling" as it would reduce funding available for state school pupils.

However, he clarified that Labour was not seeking to "judge parents’ choices."

"Our priority is ensuring every child has access to high-quality education," Bell said. "This includes the 94% of children in state schools. The proposed VAT and business rate reforms will generate approximately £1.8 billion annually to support this goal."

Among the British Bangladeshi MPs, Rupa Huq has always expressed her independent, direct, and striking stance in any situation for Bangladesh.

Rupa, 52, was a sociology teacher before entering politics. This artist and writer was last working as a senior lecturer at Kingston University. 

Dr. Rupa Huq, a three-time MP for Ealing Central and Acton in London, is currently serving as a key member of the Media Committee in Parliament. 

Rupa is the eldest of three daughters of Mohammad Haque and Rowshan Ara Haque, who are from Bangladesh. Her parents came to Britain in the 1970s. Her father's home is in Kuthipara, Pabna town. Rupa Haque is very popular inside and outside her constituency for her simple and humble demeanor.