Independent schools vote to sue over Labour’s VAT hike

31 October 2024, 17:31

The Independent Schools Council (ISC) is set to take legal action against the government over its planned VAT hike for private schools.

The ISC, which represents more than 1,400 schools in the UK and abroad, voted in favour of legal action on Thursday, following confirmation of Labour’s plans in Wednesday’s autumn budget.

Labour’s VAT policy, which is widely popular but has attracted criticism from private schools, will impose a 20 per cent tax on school fees from January.

Human rights lawyer Lord Pannick KC, of Blackstone Chambers, will take on the case, which claims Labour’s plans breach the European convention on human rights and the Human Rights Act 1998.

Read more: Chancellor admits Budget will hit workers’ pay - as ‘Brits to be left around £300 worse off’

The firm will argue Labour’s tax plan deprives independent school children their right to education, the Times reports.

Private schools will 'have to cut their cloth in the same way that state schools have', says Wes Streeting

Julie Robinson, the general secretary of the ISC, said: “We know the government has been told by tax experts, teaching unions and many others that the January implementation was too rushed and exacerbated many of the problems involved with this policy.

“In the meetings we had with the government, we didn’t feel that our points were taken on board.

“We want to carry on asking the government to work with us to mitigate the risks of the policy because we feel the independent sector has been treated as a kind of homogenous hole based on stereotypes when the reality is most schools are very small and work to very tight margins.

“Special-needs provisions, specialist education, small faith and girls’ schools have been put at unnecessary risk, and we feel the government’s got a responsibility for all children, including those.”

A number of private schools have hinted at plans to start legal action against he government, with The King’s School in Fair Oak, Hampshire, claiming the tax is discriminatory and could spell the end of Christian schools.

It comes as Wes Streeting told LBC that private schools must stop “pleading poverty” and cut their own fees to prevent "pricing out" parents ahead of Labour’s controversial VAT policy.

The Health Secretary was asked about children with special education needs and disabilities (SEND) in private schools while talking to Nick Ferrari at Breakfast, slamming "inflation-busting increases" already put in place by institutions.

He said: “[the independent school sector] say charging VAT on school fees will price people out”

“I will just say to independent schools: You have hiked your fees up with inflation-busting increases year after year after year since 2010, and now you’re pleading poverty.

“If you’re worried about whether children in your schools will continue to access your schools, you will have to cut your cloth in the way that state schools have had to do.”

Mr Streeting then hit out at the charitable enjoyed by about half of private schools in England and Wales, which meant they were exempt from many taxes.

He concluded: “I’m sure they can take steps to mitigate against children being forced to drop out if they’re the good charities they say they are.”