In its 2024 General Election manifesto, the Labour Party pledged to remove VAT and business rates exemptions for independent schools. Following the election, the new Government confirmed it would introduce VAT on private school fees from January 2025, mid-academic year.
In response, Dr Neil Shastri-Hurst joined five other West Midlands Conservative MPs in writing to the Chancellor and the Secretary of State for Education, urging for the policy to be reconsidered.
Neil identified a significant consequence of the change: the disproportionate impact on children from military families receiving the Continuity of Education Allowance (CEA). The CEA supports educational stability for children whose schooling is disrupted by parental deployment.
He wrote to the Chancellor calling for ring-fenced funding for the Ministry of Defence to raise the CEA by 20 percent. His letter was co-signed by several of his fellow Conservative MPs.
Neil also raised the issue in a Westminster Hall debate and, on 13 November, used his first Prime Minister’s Questions to challenge the Prime Minister on the policy and its timing.
At the Autumn Budget 2024, the Government announced increased funding to the Ministry of Defence and the Foreign, Commonwealth and Development Office to ensure the CEA continues to cover a fair share of rising fees. This change followed direct campaigning by Dr Shastri-Hurst and offers reassurance to armed forces families.
Neil also supported parents and schools in their legal challenge to the VAT policy. Although the High Court ruled against them, he remains a strong advocate for those affected. Neil continues to raise his concerns on how this decision will impact the education for all children.