High Court rules in Labour’s favour on private school VAT raid
Wes Streeting tells private schools to 'cut cloth like state schools' over VAT worries
A group of private schools, pupils, and parents have lost a High Court challenge against Labour's imposition of VAT on private school fees.
The challenge claimed the 20 per cent VAT causes unnecessary harm to children, particularly those with special education needs (SEN), arguing it violates their human rights.
The High Court acknowledged the legislation interferes with some human rights but allows a “broad margin of discretion” in balancing the interests of private and state school pupils.
The government estimates the tax will raise £1.7 billion per year by 2029-30 to fund 6,500 new teachers for state schools.
Since the policy's implementation in January, around 11,000 pupils have left private schools, and fees have increased by 22.6 per cent in the last year, with parents now paying over £22,000 annually on average.