HL Deb 23 May 1966 vol 274 cc1168-9

2.38 p.m.

LORD ABERDARE

My Lords, I beg leave to ask the Question which stands in my name on the Order Paper.

[The Question was as follows:

To ask Her Majesty's Government whether they consider it to be in the best interests of education to impose the selective employment tax on schools.]

LORD CHAMPION

My Lords, arrangements to be made to offset the effect of the tax on the finances of local authorities will cover all schools that they maintain. The question of compensating grant-aided schools, for all or part of the cost, through the normal grant machinery is being considered. The Government have decided that privately financed services as a whole should pay the tax without refund (except for certain transport services and subject to special arrangements for agriculture, horticulture and forestry). This means that there are no arrangements for exempting private educational institutions as such. The Government are, however, considering the position of charities in general.

LORD ABERDARE

My Lords, I am grateful for that reply, but does it not mean that this is discrimination against the independent sector of education, and, in particular, is it not discriminating against those schools which provide a boarding education?

LORD CHAMPION

My Lords, the Government have decided that privately financed services generally should pay the tax without refund. There is therefore no question of discrimination against independent schools.

LORD CARRINGTON

My Lords, is it not a fact that there is throughout the country a shortage of places in boarding schools? May we then take it that it is the policy of the Government to aggravate that shortage?

LORD CHAMPION

My Lords, the policy of the Government is to do whatever is best for the country as a whole.

LORD CONESFORD

My Lords, in the case of the schools that are to obtain no refund, is it the Government's intention that the tax should be paid at the cost of the parents, the children or the teachers?

LORD CHAMPION

My Lords, the cost will be paid by the institution concerned.