House of Lords votes against ending private school tax relief

The House of Lords has voted against a proposal to end tax relief for private schools, which is a setback for the Government. The vote showed strong support for a Conservative amendment to the Non-Domestic (Multipliers and Private Schools) Bill. Peers backed the amendment by 232 votes to 141. The Government wants this bill to remove tax relief for about 1,040 private schools in England that are classified as charities. If passed, this would mean that these schools, making up roughly 40% of independent schools, would lose their right to claim business rates relief. Shadow education minister Baroness Barran defended the idea that education should not be taxed, accusing the Government of pushing through its agenda at the expense of charities. Baroness Barran expressed concern that ending tax relief could harm vulnerable children, especially those with special educational needs and disabilities (SEND), many of whom are in private schools. The Government has claimed that the changes will not affect schools that primarily serve SEND students with education, health and care plans (EHCPs). However, it has been noted that many SEND children do not have EHCPs. Conservative peer Lord Shinkwin criticized the Government for its approach, saying it treats SEND children as "expendable." He argued that removing tax relief is crucial for protecting these children and preventing schools from closing. He warned that this measure could worsen the already strained state education system. Other peers also expressed concern over the impact on families, teachers, and local communities. Lord Black of Brentwood accused the Government of ignoring the potential negative effects on private schools and their students. In defense of the tax relief changes, Communities Minister Lord Khan explained that the goal is to improve state education, where the majority of children are educated. He stated that removing tax breaks could generate about £1.8 billion a year by 2029-30, which could help raise funding for core school needs.