Parents lose High Court battle over VAT on private school fees

In England, families of private school students, alongside the Independent Schools Council, challenged a new Labour policy that imposes 20% VAT on private school fees. The families argued that this tax discriminatory affects children with special education needs and other vulnerable groups, as private schools often cater to specific needs that state schools cannot. Despite the legal challenge, the High Court, in a detailed 94-page decision, ruled in favor of the government, asserting that the legislation, while it might interfere with human rights, falls within the government's discretion to make such tax policy decisions. Government estimates indicate that the VAT on private school fees is expected to raise approximately £1.7 billion annually by 2029-30, aimed at funding more teachers for public education. However, since the VAT implementation, private school enrollment has dropped significantly, by over 11,000 students in a year, reflecting the immediate impact of the tax hike on families' educational choices. The fee increase has also been noted, with average private school fees rising by 22.6%, leading to substantial financial pressures on families, who are now paying more than £22,000 annually. This policy change aligns with Labour's manifesto from the last general election and is intended to bolster public education services, emphasizing the government's commitment to the 94% of students who attend state schools, as highlighted by a government spokesperson following the ruling.