K-12: UK private schools lose legal challenge over VAT
The Independent Schools Council (ISC), which represents private schools in the UK, argued that the controversial policy requiring schools to pay VAT on their fees was discriminatory and contrary to human rights. But three High Court judges have today dismissed the case, with the ISC plotting its next move.
It’s the latest step in a furious legal battle as private schools scrambled to try and overturn the policy, fearing that their student numbers could plummet as families are no longer able to afford higher fees.
In their judgement, Dame Victoria Sharp, Lord Justice Newey and Mr Justice Chamberlain found that, although some families would no longer be able to send their children to private schools, these factors were “outweighed by the expected revenue raised for public services”. The money raised via the policy will be redirected into state education, as part of a major Labour election policy last year.
And although the judges acknowledged that children with special educational needs or disabilities or those observing certain religions would be negatively impacted by the policy, they pointed out that the government had followed all the necessary processes to see it made into law – including a full parliamentary debate.
ISC CEO Julie Robinson doubled down on her criticism of the policy, which she slammed as an “unprecedented tax on education”. She said that the ISC was “carefully considering” the judgement and planning its next steps.
“Our focus remains on supporting schools, families and children. We will continue to work to ensure the government is held to account over the negative impact this tax on education is having across independent and state schools,” she said.
Commenting on the case, Robert Lewis, partner and head of the education group at Mishcon de Reya, acknowledged that the ruling would be a “disappointment to independent schools and the families who entrust them with their children’s education”.
“From the outset, the claim faced formidable legal obstacles: it sought to overturn a fully democratically endorsed policy; one introduced in the Labour manifesto, debated in Parliament, and enacted into law,” he said.
“Nonetheless, the judgment does offer a modest but meaningful silver lining for independent schools. It observes that an outright ban on independent schools would likely breach the United Kingdom’s obligations under the European Convention on Human Rights.”
The VAT policy has been roundly criticised by the K-12 sector in the UK, many of which are home to international students, leading to fears from independent boarding schools that their intake could plummet.
Nonetheless, the judgment does offer a modest but meaningful silver lining for independent schools
Robert Lewis, Mishcon de Reya
Experts predicted that most schools would be forced to raise their fees an average of 10-15% to cover costs, although an online private school told The PIE News that it has seen a “five-fold” surge in interest from parents since the VAT policy was announced last year due to its relative value for money.
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