Private Schools, Parents Lose High Court Challenge Against VAT on Fees

A High Court ruling has dismissed legal challenges brought by private schools, pupils, and their parents against the Labour government's imposition of 20% VAT on private school fees, a policy introduced in January 2025. The claimants argued that the tax discriminates against children attending faith schools, those with special educational needs (SEN) not covered by care plans, and families seeking single-sex education or education aligned with foreign curricula. The court acknowledged interference with some human rights but upheld the policy as proportionate, emphasizing the government's broad discretion to balance interests and the goal of raising revenue for state schools. The government estimates the VAT will generate £1.7 billion annually by 2029-30 to fund 6,500 new state school teachers, though the Independent Schools Council reported private school fees have increased by over 22% in one year, with pupil numbers declining by more than 11,000 in England. Despite the ruling, the ISC and parents expressed disappointment, highlighting the significant impact on families and the importance of independent schools for diverse educational needs. The case showcased the tension between government funding priorities and the burden placed on private education sectors and their communities.