Appeal Court Upholds VAT Addition to Private School Fees
The Court of Appeal has firmly rejected the latest legal challenge against the government's plan to impose VAT on private school fees, delivering a significant blow to opponents of the policy. In a decisive ruling, the court emphasized that parents who object to sending their children to state schools have the alternative option of home schooling.
Legal Challenge Dismissed by Senior Judges
The appeal was launched by families and leaders from four independent Christian faith schools, who sought to overturn a High Court ruling from last year. They argued that adding 20% VAT to school fees would render small faith schools "unviable" and unaffordable, thereby depriving children of their right to an equivalent education aligned with their religious convictions.
However, in their judgment, Sir Geoffrey Vos, Lady Justice Falk, and Lord Justice Singh dismissed the appeal. They stated there is no prohibition on the UK government taxing education and no guarantee of a right to education of a particular type beyond what the state already provides. The judges also found that the government had valid justifications for not exempting certain types of schools from VAT.
Impact on Low-Cost Faith Schools
The four schools involved in the case—Wyclif Independent Christian School near Caerphilly, Emmanuel School in Derby, The Branch Christian School in Dewsbury, West Yorkshire, and The King's School near Eastleigh in Hampshire—charge significantly lower fees than typical independent institutions. While many private schools charge between £16,000 and £30,000 annually, these faith-based schools charge only £3,000 to £5,000 per year.
These schools often rely on donations, volunteers, and teachers who work for lower pay than they would receive in other educational settings. The Christian Legal Centre, which supported the appeal, warned that the VAT addition could force the closure of such low-cost Christian schools, making it increasingly difficult for parents to provide a comprehensively Christian education for their children.
Court's Stance on Home Schooling Alternative
In their ruling, the judges acknowledged that the measure might have a serious impact on parents who cannot afford private education that aligns with their religious beliefs. However, they pointed out that home schooling remains a viable alternative if free education in the state sector is unacceptable to them.
The ruling stated: "We acknowledge that the measure may have a serious impact on the parents if they are unable to afford private education which accords with their religious convictions, 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."
Reactions and Future Legal Steps
Andrea Williams, chief executive of the Christian Legal Centre, expressed disappointment with the ruling and announced plans to apply for an appeal to the Supreme Court. Williams argued that the government is penalizing parents who simply want to provide a Christian education for their children and is centralizing control over schooling, thereby exerting influence over the future of education.
Legal experts noted that the ruling was not entirely surprising, given Labour's manifesto commitment to adding VAT and the inherent difficulty of mounting legal challenges against tax measures. Ane Vernon, a partner at Payne Hicks Beach law firm specializing in education, commented that while the judges' observation about home schooling may address human rights law arguments in principle, it is likely to leave a bitter taste for many parents for whom home schooling is neither practical nor comparable to their chosen educational environment.
The decision underscores the ongoing tension between government tax policies and parental choice in education, setting the stage for potential further legal battles and political debates over the future of private and faith-based schooling in the UK.
