Private schools lose legal challenge over VAT changes

"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. Government lawyers had argued that families who wished to opt out of state-funded education were free to send their children to private school or to educate them at home."

"While the court did acknowledge the negative impact on some groups, including children with SEND and who attend faith schools, it said this was outweighed by the money raised for state sector schools. The policy came into effect on 1 January 2025 and the government has said it would raise 1.8bn a year by 2029/30."

"In their judgement, Sir Geoffrey Vos, Lord Justice Singh and Lady Justice Falk acknowledged that the measure may have a serious impact if the families were unable to afford private education which accords with their religious convictions."

Private schools challenged the government's decision to remove VAT exemption on their fees, arguing the policy was discriminatory and violated human rights law. The Court of Appeal dismissed this challenge, acknowledging negative impacts on certain groups including children with special educational needs and faith school attendees, but determining the policy's benefits justified the measure. The VAT removal, effective January 1, 2025, is expected to generate £1.8 billion annually by 2029/30 for state school funding. The court noted families could pursue home schooling as an alternative. The schools may seek Supreme Court permission to appeal the decision.

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