Private school VAT campaigners lose court challenge
A group of families with children at private schools have lost their High Court battle over the government’s decision to apply VAT on school fees, with a judge ruling it did not sufficiently infringe on pupils’ human rights.
Campaigners had brought legal action against the Treasury, arguing that the change to private schools’ tax status discriminated against the rights of special needs pupils, and students at faith and international schools.
But after a high-profile trial that sparked several well-attended protests and attracted constant media coverage, three judges at the High Court dismissed the challenge on Friday.
In the judgement published by Mr Justice Chamberlain, Dame Victoria Sharp and Lord Justice Newey, it concluded that even though the legislation does interfere with some of the appellants’ human rights, there was a “broad margin of discretion in deciding how to balance the interests of those adversely affected by the policy against the interests of others who may gain from public provision funded by the money it will raise”.
“We have concluded that the challenged legislation falls within that broad margin,” they wrote, before adding that, even though they were dismissing the claims, the campaigners had permission to apply for judicial review.
Unless the private schools parents and pupils trigger their right to appeal, the judgement brings an end to one of the most followed High Court showdowns of the year.
During a hearing in the Spring, the barrister representing one of the groups of private school children and their parents, Lord David Pannick KC, told the court that despite the needs of some of the children in private school not being met by state schools, the new law applied “irrespective” of those requirements.
Arguments also revolved around religious pupils’ objection to secular education, and that there were insufficient provision for children with Special Educational Needs (SEN) at most state schools.
But representing the Treasury and other defendants, James Eadie KC said the VAT decision was one of the Labour party’s most prominent revenue raising measures in its pre-election manifesto. He also said the government anticipated the policy would raise £1.5bn and £1.7bn a year.
And in the judgement handed down on Friday, the court balanced the rights of those adversely affected by the policy against “the interests of others who may gain from public provision funded by the money it will raise”.
Julie Robinson, the chief executive of the Independent Schools Council, said: “This is an unprecedented tax on education and it was right that its compatibility with human rights law was tested.”
“The ISC is carefully considering the court’s judgement and next steps. Our focus remains on supporting schools, families and children,” she added.
“We will continue to work to ensure the government is held to account over the negative impact this tax on education is having across independent and state schools.”
Sophie Kemp, the head of public law at Kingsley Napley, who represented the claimants, said: “This is a disappointing decision for the claimants, who are carefully considering the court’s judgement. It was important to challenge VAT on school fees, which both the government and the court recognised had a discriminatory impact on children at religious schools as well as significant impact on children with SEN.
“The court felt that it was not able to interfere because of the leeway it must give to Parliament. Unfortunately, this doesn’t help the claimants, who must now weigh their options.”