A coalition of Christian schools, parents and pupils has been granted permission to appeal a UK government policy that applies VAT to private school fees.
The government introduced the VAT measure as part of broader tax reforms, arguing that it would raise revenue to fund state education.
The policy is being challenged by several independent Christian schools, including Emmanuel School in Derby, The Branch Christian School in Yorkshire, The King’s School in Hampshire and Wyclif Independent Christian School in South Wales.
Supported by the Christian Legal Centre (CLC), they argue that the policy unlawfully discriminates against families seeking faith-based education, particularly in low-income areas where such schools often operate.
They say that the addition of VAT has already forced some independent schools to close and has pushed others to the brink.
The coalition's legal challenge was dismissed by the High Court in June when it ruled that taxation matters fell within Parliament’s discretion, despite recognising the impact on lower income families.
However, Lord Justice Lewis in the Court of Appeal has now ruled that the case raises compelling issues of public interest and should be heard.
Joining the legal challenge is Stephen White, a father and bookseller from Bradford who chose to live in one of the most deprived areas of the city so that he could afford to send his four children to the Bradford Christian School.
He said he was "very encouraged" by the news that the appeal can go ahead, calling the policy "unjust and discriminatory".
"It denies us the right to raise our children in line with our beliefs and forces us to choose between home-schooling or compromising our faith," he said.
"Labour has created a caricature of wealthy private schools, but that’s not our reality.”
Opponents say the additional VAT disproportionately affects smaller and lower-cost independent schools, including those serving children with special educational needs [SEND].
Caroline Santer, headteacher at The King’s School in Hampshire, said: “This policy has already caused children to leave their schools and schools to close. It disproportionately affects military families, SEND children, and those with specific religious beliefs. We will continue to challenge this unjust legislation.”
Jill Holt, headteacher at The Branch Christian School, said the additional fees were out of reach for many Christian parents: “Most of our parents work full-time and cannot home-school. They choose our school because it reflects their values.
"VAT would add nearly £800 to fees, a burden many families simply cannot bear. The government’s argument doesn’t add up. It would cost more to educate these children in state schools.”
The Christian Legal Centre (CLC), which is supporting the Christians in their appeal, argue that current policy may breach the European Convention on Human Rights, including the right to education and protection against discrimination.
CLC chief executive, Andrea Williams, said the policy was about much more than taxation and impacted on the freedom of parents to educate children "in accordance with faith and conscience".
“Education has long been regarded as a public good, historically supported through charitable reliefs and never subject to direct taxation. This move marks a significant and troubling departure from that tradition," she said.
"The policy so far has been an utter disaster, in all likelihood not raising a penny more for education, but shutting down charitable, long standing private Christian schools for what? Ideology. This policy needs to be not just rethought, but completely scrapped before any more wonderful schools are closed.
"This government policy is part of a broader trend which is seeing the government seeking increasing control over what children learn. From radical RSE [Relationships and Sex Education] in primary schools to burdens on private faith schools and home educators, the message is clear: diversity of thought and belief in education is under threat."
The appeal hearing is expected to take place in the coming months.
