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High Court rejects challenge to Labour’s private school VAT policy, dealing blow to parents and schools

13 June 2025
in Business
Reading Time: 4 mins read
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High Court rejects challenge to Labour’s private school VAT policy, dealing blow to parents and schools
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The High Court has ruled against a legal challenge brought by families and private schools seeking to overturn Labour’s new policy applying 20% VAT to private school fees.

Judges this morning rejected all claims brought forward in the judicial review, marking a significant defeat for the families of private school pupils, many of whom argued the tax violated human rights and unfairly targeted vulnerable groups.

The policy — a cornerstone of Labour’s education funding reforms — came into effect in January 2025, and is expected to raise £1.5 billion in its first year, rising to £1.7 billion annually by 2029/30, according to the Office for Budget Responsibility.

The case was launched by three groups of families, most of whom remained anonymous, alongside a coalition of independent schools. Their lawyers claimed that the VAT breached children’s right to education under the European Convention on Human Rights and was discriminatory against:

  • Pupils with special educational needs (SEN)

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