Speaking in a debate about the impact of VAT and other tax changes on independent schools, introduced by Conservative Peer Lord Lexden, Lord Black said that Labour had always been "far from honest" about what its new education tax would mean in practice.
A video of his full speech is here.
Branding the changes as "breathtaking hypocrisy" in view of Labour's pledge to restore "trust in politics", he said:
"The Government said there would be limited impact on the numbers attending independent schools. It was not honest. The number of pupils has fallen by over 33,000—double the 14,000 it glibly estimated. It said there would not be significant school closures. It was not honest: some 106 mainstream schools have shut their doors, destroying jobs, displacing pupils and wrecking communities. It said it would use the money raised to fund new teaching places. It was not honest: the number of teachers has fallen. The Government said they were closing a loophole, knowing full well this was no loophole. It was not honest. Education has never been taxed and, by introducing one, the Government have created a glaring anomaly."
Guy pointed to the destructive impact on boarding schools in particular:
"Nowhere has the impact on this policy been more harshly felt than among our boarding schools. The UK’s boarding schools are the best in the world, a powerful tool of soft power contributing significantly to our economy. They are a jewel in the crown of the sector, with schools like Brentwood School [where I am Chairman of Governors] attracting pupils from across the globe: 33 nationalities are represented among our boarders."
The figures spoke for themselves: "The number of boarders at independent schools dropped by 12% to around 65,000 pupils between 2024 and 2026, a rate double that of the sector as a whole. More than 25 independent boarding schools have either closed, announced their impending closure or stopped boarding entirely. In the three years before the imposition of VAT, that figure was only nine—a third of the current rate—destroying the Government’s erroneous assertion that closures are simply part of a long-term trend. That is nonsense."
Guy also noted the damaging impact on music and the arts. He said that the "tragic decline of music education in state schools, which this Government, despite their promises, have absolutely failed to reverse ... has put a huge burden on the independent sector, both to protect the future of music as it dies out in the state sector and to do what it can to support those in state schools who are desperate to learn an instrument or take part in an orchestra, or even just to sing, but who have no opportunity to do so. The role of independent schools in this area is vital. It is not something we have to do; it is something we absolutely want to do. In the last year alone, the Independent Schools Council has recorded almost 10,000 partnerships between independent schools on academic collaboration and enrichment. About 2,500 of these are centred on the arts, with over 600 schools providing over 2,200 partnerships to support state schools with joint musical events."
He gave some examples: "Schools like Brentwood, which has one of the finest music departments in the country, provide an excellent example. This year, we are committed to an amazing project to offer all local state primary schools the opportunity for their pupils to participate in a mass concert performance of Rutter’s “Mass of the Children” at Brentwood Cathedral, part of an ongoing commitment to local partnerships. Elsewhere in the country we see other shining examples of partnerships to ensure children from state schools get access to arts education that their own schools cannot provide. King’s College School in Wimbledon partners with local schools to deliver an annual community drama production. For more than 20 years, Lichfield Cathedral School music partnership has enabled over 30,000 pupils in 500 schools across the West Midlands to benefit from high-quality music education."
In closing he called for "a fresh review of the impact of this policy—including the [impact of the] withdrawal of business rates relief—with clear methodology and an open mind. Preferably, that would mean a credible independent study ... It is time to put dogma aside and put the interests of parents and children first."
The full text of Guy's speech, and the rest of the debate including the reply from the Minister, is here.
ENDS.
