Rachael Maskell (pictured) called on the Prime Minister to reverse her party’s flagship policy because state schools don’t work for those pupils. Warning that the policy is ‘simply not going to work’, the York Central MP told the Telegraph her party should drop it from the Budget tomorrow

‘The serious concern that I am illustrating is that children with Send, anxiety, mental health challenges and care experience have nowhere else to go outside of the independent sector currently, as the pedagogy within the state sector is simply not working for these children,’ she said.

‘Parents send their children to independent schools out of necessity not choice, and some are working several minimum wage jobs to do so.

‘The policy is simply not going to work for these families, so we need a resolution. It is about sequencing and while the Department for Education is wanting to rebuild support for these children there just hasn’t been time.’

Her intervention came after Bridget Phillipson, the education secretary, said that only those pupils with an education, health and care plan (EHCP) will be exempt from paying VAT on school fees.

This means that 75per cent of children with special needs would miss out on the exemption.

Ms Maskell added that levy would be ‘really disruptive and challenging for parents’ when it is introduced in January, and said a delay would give time for a ‘proper debate and discussion’.

Sir Keir Starmer has vowed to remove the VAT exemption for independent schools from January, which will increase costs by 20 per cent

Douglas Housel in Richmond, south-west London, charges £10,400 a year and is partly funded by Berlin

Meanwhile, EU ambassadors criticised Labour’s plan to impose VAT on private school fees as it will affect international schools and damage diplomatic relations.

Helene Duchene and Miguel Berger – the French and German ambassadors to London – have warned that the policy will damage diplomatic relations with Britain.

They argued that international schools in the UK – which are part-funded by governments overseas – should be exempt from the tax raid.

Diplomatic sources said the measure could affect nearly 20 European schools in the UK and said many would have to pass on the additional cost to parents.

They added that between 25 and 30 per cent of the 6,300 pupils enrolled in French schools in the UK, and between 20 and 25 per cent of the 900 pupils at The German School, could drop out as a result.

The Spanish embassy is also said to be in talks with the Government over the tax plans.

Sir Keir Starmer has vowed to remove the VAT exemption for independent schools from January, which will increase costs by 20 per cent.

Many schools are likely to pass on the additional costs through an increase in fees with predictions that some could close as a result.

The Institute for Fiscal Studies (IFS) estimated that between three and seven per cent of private school pupils could be driven to the state sector by the policy – around 18,000 to 40,000 pupils.

The Prime Minister has said he will seek a post-Brexit ‘reset’ with the EU and will seek closer ties with the bloc.

The Institute for Fiscal Studies (IFS) estimated that between three and seven per cent of private school pupils could be driven to the state sector by the policy – around 18,000 to 40,000 pupils

But Ms Duchene told the Times the decision was ‘not in line with the reset to our relationship which the British government has instigated’.

The move could also prevent those who work for European businesses moving to the UK and enrolling their children in the schools, the diplomats argued.

The UK has 11 French schools which are part-run by the French government, including the Lycee Francais Charles de Gaulle which charges fees of up to £16,923.

Ms Duchene told the paper: ‘We are not asking for an exemption to the rule; we are not the target of this VAT measure. Our schools are different from the target ones, since we follow special courses preparing for French exams.’

She added that VAT ‘could also be an issue for our companies, as they need these schools for employees coming to work here for a few years’, she said.

‘These parents don’t have a plan B because other schools don’t follow the French curriculum.’

Mr Berger told the FT that international schools were ‘totally distinct from British private schools.

‘They serve as a cultural bridge between our two countries and as a possibility for people of the business community and other areas who want their children to continue in our national curriculum.

‘We would really like to see the British government recognise the importance of these schools – not only for our political and cultural relations but also for the people this will affect,’ he added.

‘If we want companies to come here to invest, to send their executives, they must know they can send their children to a German school. For the whole relationship, I think it is a very important element.’

The German school in Richmond, south-west London, which charges £10,400 a year, is partly funded by Berlin.

The Treasury said: ‘We want to ensure all children have the best chance in life to succeed. Ending tax breaks on private schools will help to raise the revenue needed to fund our education priorities for next year.’