The Independent Schools Council (ISC) has announced that they will be taking legal action against the government’s decision to impose VAT on independent school fees. The council, which represents over 1,400 private schools in the UK and abroad, made this decision after a board meeting held on Thursday. Human rights barrister David Pannick KC will be leading the challenge on behalf of parents who are affected by this decision.
Chancellor Rachel Reeves confirmed in the budget that a 20% VAT would be applied to private schools starting in January. The government estimates that this move could raise £460m next year, with the potential to increase to £1.7bn by 2029/30. Julie Robinson, the chief executive of ISC, emphasized that this decision was not taken lightly and has been under consideration for several months. The focus of this debate has been on the children in private schools who could be negatively impacted by this policy.
The government predicts that private school fees could increase by an average of 10% due to the introduction of VAT. This could lead to around 35,000 students transferring to state schools over time, along with an additional 2,000 students leaving private institutions, including international pupils. European diplomats have expressed concerns about the impact of this decision on international schools, calling for them to retain their exemption from VAT.
While the government has promised to increase funding for the continuity of education allowance (CEA) to support military and diplomatic families with boarding school fees, the ISC remains worried about the effects of the VAT policy on small faith schools, arts and music programs, and children with special educational needs and disabilities in private schools. The legal case brought by the ISC will focus on alleged breaches of the European convention on human rights and the Human Rights Act 1998.
In response to the VAT plans, members of a campaign group opposed to the decision targeted Education Secretary Bridget Phillipson with personal abuse, comparing the tactics to those of Nazi Germany. Messages from the group Education Not Taxation: Parents Against School Fee VAT (ENT) included personal attacks on Phillipson. The ISC’s legal action will be separate from other litigation, but they will be working with other third-party groups on this matter.
As the situation unfolds, it is clear that there are concerns and disagreements on both sides of the issue. The impact of VAT on private school fees extends beyond just financial implications, affecting families, students, and the overall education system. The legal battle between the ISC and the government will shed light on the complexities of this policy and its potential consequences.
