Jamie Cartwright writes for Independent Schools Magazine on how VAT on private school fees is shaping the future of the independent education sector

After the High Court backed VAT on private school fees, Jamie Cartwright, Partner, considers and ponders on what happens next.

In June, the High Court issued the judgment on the challenge against the government over its decision to apply VAT on fees. Following months of preparation and a judicial review held in April, and using more than a dozen families as case studies, the single written judgment by the three judges presiding dismissed those claims, and said the VAT policy was “proportionate” in its aim to raise extra revenue for state schools.

While the decision has provided some level of clarity, questions remain – not least around the effect on families, the response from the independent sector, and whether this ruling marks the end of the legal road.

The ruling does observe that an outright ban on independent schools would probably breach human rights law – underlining that while governments can regulate access, they cannot erase choice altogether.

"For now, the focus will shift to practicalities. Schools and parents are working to model the financial implications, amid continued questions about affordability, demand, and the extent of any migration from the independent to the state sector. The ISC has warned of “serious consequences” for both sectors, and schools are already reviewing fee structures, bursaries, and cost bases.

"Politically, the ruling gives the government breathing room. But it may also sharpen the debate on how the additional revenue is spent – and whether it achieves the promised outcomes.

Read the full piece in Independent Schools Magazine here.