Live Markets, Charts & Financial News

Private schools to launch legal action against VAT on fees, calling policy ‘discriminatory’

2

Private schools in the UK, represented by the Independent Schools Council (ISC), have voted to take legal action against Labour’s decision to impose VAT on school fees.

The International Study Centre, which represents 1,400 independent schools, says the new tax is discriminatory, and particularly affects students with special educational needs and disabilities, as well as religious schools and schools specializing in the arts.

The ISC retained eminent barrister Lord Pannick KC, who defended Boris Johnson at the Partgate inquiry, to pursue a judicial review on the grounds that the VAT policy breached the European Convention on Human Rights. This case will emphasize the impact of policy on SEND students, arguing that families relying on private schools may have difficulty finding suitable alternatives in the state sector.

Chancellor Rachel Reeves has confirmed that the VAT measure will come into force in January, generating an estimated £1.7bn a year by 2030. However, the Office for Budget Responsibility predicts the policy could force 35,000 students out of private schools and into the state sector. , which would create additional pressure on public education resources.

Julie Robinson, chief executive of the ISC, expressed concerns that the policy ignores the diversity of the independent sector, with many schools operating on limited budgets. She stressed that the legal challenge filed by the International Studies Center will defend “the rights of families who have chosen independent education, but may not be able to do so due to the value-added tax on their fees.”

The ISC is calling on the Government to reconsider the VAT policy timeline and collaborate on ways to mitigate its impacts on small schools, SEND provisions and arts education. With two-thirds of the tax expected to be passed on to parents, the impact of this measure could lead to major shifts in the UK’s educational landscape, sparking an ongoing debate about access to private education.

Comments are closed, but trackbacks and pingbacks are open.