Members of armed forces 'could quit' over Labour's VAT plan for private schools

The government's refusal to exempt military families from paying 20% VAT on private schools could cause personnel to quit, the shadow defence secretary has warned.

Speaking in parliament on Monday, Defence Secretary John Healey would not agree to allow military families to be exempt from the policy, which will begin in January.

Politics latest: Ex-Google boss tells PM what's blocking investment

Asked if he would do so by Conservative shadow defence secretary James Cartlidge, Mr Healey said the government is "looking very closely" at how it can continue providing a contribution to boarding school fees for military families as part of their package.

Mr Cartlidge told Sky News there are many families who fall outside of being eligible for the Continuity of Education Allowance (CEA), yet still need to send their children to boarding school as they move around a lot - but cannot afford it.

He said if armed forces personnel have to pay the "unaffordable increases... because of this government's ideological decision", it could force experienced personnel to quit.

Parents claiming CEA must contribute a minimum of 10% towards fees, as well as all extras such as uniform, music and weekend activities.

The eligibility criteria states:

• Children must be at least eight years old
• The family must be expected to relocate within the next four years
• Families must remain living together
• Families must agree to keep the child in the same school until the end of their current stage of education
• Children must be placed in the correct chronological year group.

Read more:
Labour faces legal challenge over VAT on private schools
Private schools VAT plan 'rushed by government'

Mr Cartlidge told Sky News: "Military families are at risk of being sacrificed on the altar of Labour's ideological politics of envy.

"Despite the growing threats we face as a nation, and the urgent need to strengthen retention in the armed forces, Labour are ploughing ahead with an education tax that is forcing those who serve their country to reconsider their career.

"Labour have clearly not thought through this policy. They must change course and offer an exemption from education VAT to military families immediately."