Legal Challenge Over VAT Exemption Dismissed
The Court of Appeal has dismissed a legal challenge brought by a group of private schools contesting the government's removal of the VAT exemption on the fees they charge. The schools had argued against the policy, which came into effect on 1 January 2025, but the court upheld the government's decision.
Arguments and Court's Reasoning
Lawyers representing families from low-paying faith schools contended that the VAT policy was discriminatory and violated human rights law. However, the court rejected these claims, noting that home schooling remains an available alternative for families who do not wish to accept state education provision.
The schools involved are now seeking permission to appeal the decision to the Supreme Court.
Government's Policy and Financial Impact
The government has stated that the removal of the VAT exemption is expected to generate £1.8 billion annually by 2029/30. These funds are intended to support the recruitment of additional teachers in state schools across England.
Previous Legal Challenges
In the previous year, three separate claims were filed in the High Court against the government. These claims were brought by families of children with special educational needs and disabilities (SEND), those attending same-sex schools, and low-paying faith schools. While the court acknowledged the negative effects on certain groups, including children with SEND and those attending faith schools, it ruled that these impacts were outweighed by the benefits of increased funding for state schools.
Appeal and Court of Appeal Judgment
The low-paying faith schools and families involved in the challenge appealed the High Court's decision. However, on Friday, the Court of Appeal dismissed their challenge. The judges—Sir Geoffrey Vos, Lord Justice Singh, and Lady Justice Falk—recognized that the VAT measure could have a "serious impact" on families unable to afford private education aligned with their religious beliefs.
"But it is important to bear in mind that they have the option of home schooling if free education in the state sector is not acceptable to them," the judges stated.
Government lawyers argued that families wishing to avoid state-funded education are free to either send their children to private schools or educate them at home.
Reactions from Private School Representatives
Prior to the judgment, Caroline Santer, head teacher of a small private school in Hampshire, expressed her stance to the BBC:
"It's important for my parents to see that I'm prepared to take a stand and fight. No other country taxes education in this way."
Andrea Williams, chief executive of the Christian Legal Centre, affirmed the group's intention to continue pursuing legal action:
"Not everyone can home educate," Williams said.
