Private schools in Britain, represented by the Independent Schools Council (ISC), have voted to take legal action against Labour’s decision to impose VAT on school fees.
The ISC, which represents 1,400 independent schools, says the new tax is discriminatory and particularly affects students with special educational needs and disabilities (SEND), as well as faith-based and arts specialist schools.
The ISC has engaged prominent barrister Lord Pannick KC, who defended Boris Johnson in the Partygate investigation, to pursue a judicial review on the grounds that the VAT policy breaches the European Convention on Rights of Man. The case will highlight the impact of the policy on SEND pupils, arguing that families reliant on private school provision may struggle to find suitable alternatives in the state sector.
Chancellor Rachel Reeves confirmed the VAT measure would come into force in January and is estimated to raise £1.7 billion annually by 2030. However, the Office for Budget Responsibility predicts that the policy could force 35,000 students from private schools into the state sector, putting additional pressure on public education resources.
Julie Robinson, Chief Executive of ISC, raised concerns that the policy ignores the diversity of the independent sector, where many schools operate on limited budgets. She emphasized that the ISC’s legal challenge would “defend the rights of families who have chosen independent education but may no longer be able to do so because of VAT on their school fees.”
The ISC is calling on the government to reconsider the timeline of the VAT policy and work together on ways to mitigate its effects on smaller schools, SEND provision and arts education. With two-thirds of the tax expected to be passed on to parents, the impact of the measure could lead to significant shifts in the UK education landscape, sparking an ongoing debate over access to private education.