A group of children, parents and private schools today lost their High Court bid to overturn the government’s decision to impose VAT on fees.

The claim against chancellor Rachel Reeves was brought on behalf of seven children attending independent schools who may be unable to afford higher fees. The claimants’ parents wanted them to attend independent schools for several reasons, including special educational needs (SEN), religious beliefs and the alleged need for single-sex education due to past bullying.

Handing down judgment today, Dame Victoria Sharp, president of the King's Bench Division, Lord Justice Newey and Mr Justice Chamberlain dismissed the claims.

On fees potentially increasing if schools decided to pass on the cost of VAT to the parents, the judges said the European Convention on Human Rights did not protect the ‘right’ to pay school fees at a particular level.

‘Private school fees are set independently of government and are inherently subject to market forces. Parents always have the option of not paying any school fees at all - and therefore no VAT - by sending their children to a state school or educating them at home,’ the judgment says.

Primary school children walking to school

Judges say parents have the option of not paying VAT by sending their children to state school

Source: iStock 

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Abigail Trencher, head of education at top-50 firm Birketts, said today’s ruling will be a ‘big blow’ to independent schools but will surprise few, ‘including those in the independent sector, who always appreciated that the odds were stacked against a successful outcome’.

However, Trencher suggested the ruling could prompt the government to review the impact of its policy given the UK’s independent school sector is globally renowned and estimated to contribute £16.5bn to the UK economy. ‘It remains to be seen how much tax revenue will be collected by virtue of the fiscal changes made, and whether it is worth the grave impact these changes have had on the sector, in terms of school closures and damage to the UK’s standing on the international education market,’ Trencher said.

 

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