The UK government’s introduction of Value Added Tax (VAT) on private school fees has gained legal backing following a High Court ruling. Taking effect on January 1, the policy is expected to bring in around £1.8 billion per year. This investment will benefit the 94% of children already enrolled in free, public state schools. This initiative is seen by the government as a means for parents of private school students to contribute their fair share towards education funding.
Former Chancellor Rachel Reeves is a firm supporter of the policy. Largely through enabling primary legislation kindly shepherded by HM Revenue and Customs (HMRC) officials through the heroic efforts of the Department for Education, this policy was enabled. Dame Victoria Sharp, Lord Justice Newey and Mr Justice Chamberlain, the presiding judges in the case, dismissed a judicial review challenge. This challenge was led by a number of these families, supported by the Independent Schools Council’s legal.
Families worried that the policy would endanger children with special educational needs and disabilities (SEND). This is particularly concerning for students who have no other quality schools available to them. Influenced by powerful private school lobbies, they argued that such a tax on private education was unprecedented the length and breadth of Europe.
In its 94-page ruling, the court recognized the families’ concerns. They argued that the new revenue they could bring in for public services made the policy worth it. The judges remarked, “made by Parliament, in primary legislation, after full debate and was a manifesto commitment,” reinforcing the legitimacy of the government’s stance.
Caroline Santer, head teacher at The King’s School in Fair Oak, Hampshire told Schools Week she was “absolutely devastated” by the ruling. She continued, “a really big letdown. This feeling is widely shared amongst those in the private education sector, who fear that this policy would entirely alter the character of private schooling in the UK.
Julie Robinson, the chief executive of the Independent Schools Council, voiced her concerns. She stressed that the VAT would place an additional punitive burden on families already struggling to find the right materials needed for their children’s education.
Despite these challenges, government officials maintain that this policy will enhance educational standards across the board by redistributing resources to state schools. The new tax is currently in effect. Private schools such as The King’s School will no longer be exempt from VAT on fees, a historic end to the public funding of private education.
