Lord Pannick to take on government over VAT decision on private schools

A group of independent schools has appointed Lord Pannick KC, one of the country’s top legal practitioners, to take the government to court over its decision to charge VAT on private school fees.

Chancellor Rachel Reeves confirmed at the Autumn Budget that she would remove the tax benefits of private schools, with tuition and boarding tuition fees set to be taxed 20 per cent.

This is predicted to be a net benefit for the Treasury of £1.3bn to £1.5bn per year.

Labour’s manifesto detailed this policy to scrap the charitable status for private schools. However, this decision caused a stir, as there has been outrage from the private school sector.

Following the changes, the Independent Schools Council (ISC), representing 1,400 private schools, has decided to bring legal action against the government.

Private schools take action over VAT

The ISC is working with the notable £10,000 per hour barrister Lord Pannick KC, alongside Paul Luckhurst from Blackstone Chambers and the law firm Kingsley Napley.

Lord Pannick was the leading barrister during Boris’s Partygate hearing, and he is currently representing Manchester City in its disputes with the Premier League.

The ISC case is set to centre around breaches of the European Convention on Human Rights (ECHR) and the Human Rights Act 1998.

Kingsley Napley partner Sophie Kemp explained that “Removing the VAT exemption strikes at the heart of the right to education protected by Article 2 Protocol 1 of the ECHR.”

“It penalises independent education by imposing a tax that applies to no other form of education.”

She continued: “It is also discriminatory, and will hinder access to education for pupils with special educational needs who are without an Education, Health and Care Plan, those attending independent faith schools, and female pupils who attend single sex girls’ independent schools.”

“They are all at risk of being left without provision in the State sector.”

City AM understands that the intention is to move quickly to launch the legal proceedings, as High Court proceedings need to be filed within three months of the Budget.

Julie Robinson, CEO of ISC, said: “This is a decision that has not been taken lightly and has been under consideration for many months. At all points throughout this debate, our focus has been on the children in our schools who would be negatively impacted by this policy.”

“This focus remains and we will be defending the rights of families who have chosen independent education, but who may no longer be able to do so as a direct result of an unprecedented education tax,” she added.