Private schools lose High Court battle against Labour’s controversial VAT policy. This policy has already driven over 11,000 pupils out of private education. The ruling upholds the government’s decision to impose a 20% VAT on private school fees, despite fierce opposition from parents and institutions.
A coalition of private schools, parents, and the Independent Schools Council (ISC) argued that the tax unfairly targets children with special needs, religious requirements, or unique circumstances. However, the High Court dismissed their challenge. The court stated the government has broad discretion in balancing policy impacts.
Judges acknowledged the policy affects some families disproportionately but emphasized the need to fund state education. The decision reinforces Labour’s manifesto pledge to redirect an estimated £1.7 billion annually into public schools by 2029. The ruling leaves many families facing impossible choices while state schools prepare for potential overcrowding from incoming private school pupils.
Since the policy took effect in January, private school fees have skyrocketed by 22.6%, far exceeding initial Treasury estimates. The average annual cost now exceeds £22,000, pushing many families out of the system.
Official data reveals over 11,000 pupils have already left private schools in England. The Treasury predicts a long-term exodus of 35,000 students into state schools. Additionally, an extra 2,000 students may opt for homeschooling or leave the UK entirely.
Education Secretary Bridget Phillipson welcomed the ruling, stating it aligns with Labour’s commitment to improving state education. Critics, however, argue the policy harms vulnerable students who rely on specialized private schooling.
Despite the legal setback, opposition remains strong. The ISC warns of further fee hikes and reduced accessibility. Meanwhile, parents fear state schools may struggle to accommodate displaced students.
Private schools lose High Court battle, but the debate over fairness and funding continues. As fees rise and enrollment drops, the long-term impact of Labour’s VAT policy remains uncertain.
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