High Court Dismisses VAT Challenge by Private Schools

In a significant ruling for the education sector, the High Court has dismissed a legal challenge brought by private schools against the UK government's decision to impose VAT on school fees.

The case, brought forward by a coalition of independent schools and associated bodies, sought to overturn the government's policy of applying the standard 20% Value Added Tax to private education. They argued that the move would undermine parental choice, make independent schooling unaffordable for many families, and place undue pressure on state education.

However, the High Court ruled in favour of the government, stating that the policy fell within its legal and fiscal discretion. The judgment affirms the government's authority to implement tax measures as part of broader efforts to raise public revenue and improve state education provision.

Education Secretary The Right Honourable Bridget Phillipson MP, welcomed the decision, saying it supports a “fairer education system” and allows for reinvestment in underfunded public schools.

Independent schools, meanwhile, have expressed concern over the potential impact on enrolment numbers and bursary programmes, warning that the change could lead to increased closures or a heavier shift of students into the state sector.

Despite the outcome, some private school organisations have indicated they may consider further legal or political avenues to challenge the policy.

For now, the ruling confirms that VAT will remain in place on private school fees in England, reshaping the financial landscape of independent education going forward.