UK private schools initiate legal action against VAT on fees

The Independent Schools Council, representing 1,400 private schools in the UK, has voted to pursue legal action against the government's plan to impose VAT on private school fees starting in January. The challenge will focus on claims of discrimination and the right to education. Chancellor Rachel Reeves announced the VAT change in the autumn Budget, stating it would generate £460 million for state schools next year. The ISC argues that the policy will harm families, particularly those with children who have special educational needs. The government’s impact assessment indicates that only children with specific education plans will be exempt from VAT. It estimates that the policy could lead to a 10% increase in fees and push about 35,000 students to state schools over time.