Minister concerned over impact on NI grammar schools of VAT on fees
Paul Givan said he is making representations on Government over the plans.
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Northern Ireland’s education minister has expressed concern that a Government plan to introduce VAT to private school fees will have an impact on some grammar schools in the region.
While there are a very small number of fully private schools in Northern Ireland, Paul Givan said the move may also affect some grammar schools.
He said he has “significant concerns” about the wording of draft legislation which he has contended will “capture all schools whether private or not that charge a fee”.
Speaking in the Northern Ireland Assembly during questions for his department, Mr Givan said in Northern Ireland that will include 21 grant-aided grammar schools which charge capital, boarding or preparatory department fees.
“Whilst grammar schools in Northern Ireland are grant-aided for their day to day running costs, they are likely to be treated by this Labour Government as private schools by HMRC for VAT purposes if they charge fees,” he told MLAs.
“Impacted schools will be compelled to register for VAT and to charge VAT on their fees.
“My officials and I have been engaging with the Treasury in respect of this issue, to highlight our concerns around the draft legislation and we will continue to make representations on behalf of schools.”
DUP MLA Cheryl Brownlee asked about the implications for affected schools.
Mr Givan responded: “Undoubtedly it will have a significant increase in cost to those families whose children will be impacted by this decision.”
He referred to a decrease in the number of grammar school preparatory departments in Northern Ireland in recent years, and said that also has an impact on the public purse.
“Where the private fee-paying parent withdraws their children from those establishments, it is the public sector and the taxpayer who then has to make sure that there is provision for those children and young people,” he said.
“There will be implications for this, but I assure the Member, I am making representation to the Labour Government about this particular issue but I am very concerned that to date our representations are not being received effectively by London, and so I would encourage all Members, where they can raise these issues to join me in making the case for those schools that will be negatively impacted by this change.”
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