Private schools are challenging the new VAT policy, arguing it discriminates against certain institutions.
- The Independent School Council (ISC) represents 1,400 schools and argues the tax affects SEND, faith-based, and arts-specialist schools.
- The ISC has hired Lord Pannick KC to pursue a judicial review, claiming the policy breaches human rights.
- Families relying on these schools for SEND provisions may not find alternatives in the state sector due to this tax.
- The VAT measure is expected to generate £1.7 billion annually but also disrupts the educational landscape.
Private schools across the United Kingdom are gearing up to take legal action against the new policy imposing VAT on school fees. According to the Independent School Council (ISC), an organisation representing 1,400 independent schools, the newly implemented tax unfairly targets institutions catering to students with special educational needs and disabilities (SEND), faith-based schools, and those specialising in the arts.
The ISC has engaged the services of distinguished barrister Lord Pannick KC, known for his role in defending Boris Johnson during the Partygate inquiry, to challenge this policy through a judicial review. The legal argument is set to focus on the alleged breach of the European Convention on Human Rights by this taxation move.
A significant concern raised is the impact on families dependent on specialised private schooling for needs that the state sector may not address adequately. With Chancellor Rachel Reeves confirming that the VAT measure will come into effect by January, the move is projected to generate substantial revenue, approximately £1.7 billion a year by the end of 2030.
Despite the financial benefit highlighted by the government, the Office for Budget Responsibility has warned of potential adverse outcomes. It estimates that the policy could push about 35,000 students out of private education and into already stressed state schools, thereby exacerbating resource challenges.
Julie Robinson, Chief Executive of ISC, criticised the policy for ignoring the diverse nature of the independent school sector. Many of these schools operate on tight budgets, and the imposed VAT could severely strain their financial viability. Robinson highlighted the ISC’s determination to protect the rights of families choosing independent education, which may now become inaccessible due to tax changes.
The ISC’s appeal to the government includes reconsidering the timing of the VAT policy and seeking collaborative solutions to minimise its effects on smaller, specialised institutions, particularly those catering to SEND and arts education. With two-thirds of the tax burden expected to be transferred to parents, the educational sector anticipates significant shifts, stirring debates about access to private education.
The challenge against VAT on private school fees underscores ongoing debates about education access and equity.
