The High Court rejected a legal challenge against the UK government's decision to impose Value Added Tax (VAT) on private school fees. The case, brought by parents, private schools (represented by the Independent Schools Council), and faith schools, argued that the policy discriminated against children with special needs and those seeking faith-based or single-sex education. The claimants argued this was unfair, especially for those without an Education, Health and Care Plan.
The arguments, presented over a three-day hearing in April, centered around claims of discrimination and breach of human rights law. The Treasury, Department for Education, and HMRC were named defendants. The court dismissed these arguments, leading to disappointment among the challengers. The government had previously stated that the VAT would raise at least £1.6 billion annually, funding improvements in state schools, including the hiring of 6,500 more teachers.
The introduction of VAT in January, rather than at the start of the next academic year, surprised schools and parents. The stated aim of raising funds for state schools has been contrasted with subsequent comments suggesting alternative uses for the tax revenue. For example, Sir Keir Starmer's suggestion of using the windfall to fund new housing drew criticism.
A notable side effect is that private school pupil numbers dropped by 11,000 following the VAT increase.
Parents and private schools have lost their legal battle against VAT on fees in the High Court.
The judgment on Friday morning dismissed the arguments made by three separate groups that the new government policy discriminated against children with special educational needs among others.
The Independent Schools Council (ISC) said it was disappointed by the ruling which came after a three-day hearing in April.
The Treasury, Department for Education and HMRC were named in the application for a judicial review which claimed VAT on fees was discriminatory and a breach of human rights law.
Nearly 20 families and faith schools had joined forces with the ISC to challenge the policy, which was part of Labour’s general election manifesto, saying it was unfair to those wanting a faith school or single-sex education and children with special educational needs but without an education health and care plan.
• Private school pupil numbers drop by 11,000 after VAT hikeSchools and parents were surprised when the tax was introduced in January rather than at the start of the next academic year. The government repeatedly said it would raise at least £1.6 billion a year which would be ploughed back into state schools including paying for 6,500 more teachers. But Sir Keir Starmer was widely criticised on Thursday for saying on social media that the VAT windfall would fund new housing.If you often open multiple tabs and struggle to keep track of them, Tabs Reminder is the solution you need. Tabs Reminder lets you set reminders for tabs so you can close them and get notified about them later. Never lose track of important tabs again with Tabs Reminder!
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