Christian schools challenge ‘devastating’ tax hike

TODAY at the High Court, the government will face a judicial review of its unprecedented taxation policies on private and independent Christian schools. Christian Concern is enabling this crucial legal challenge. 

The VAT policy unfairly targets Christian schools, parents and pupils, placing an unbearable financial burden on families who choose Christian education. The legal challenge will argue that this VAT tax is unlawful, discriminatory and in breach of Article 14 of the ECHR.

The government’s decision to impose VAT on the provision of education by independent schools has made the UK an outlier among the 46 Council of Europe states.

Supported by the Christian Legal Centre, Christian schools, parents and pupils are bringing the challenge from the award-winning Emmanuel School in Derby, the Branch Christian School in Yorkshire, the King’s School in Hampshire and the Wyclif Independent Christian School in Caerphilly, South Wales.

The Christian claimants say the government is illegally discriminating against them through the policy and seek a declaration that the government’s amendment of the VAT Act 1994 is unlawful and incompatible with their human rights under Article 14 of the ECHR.

They say the VAT extension disproportionately affects parents who have chosen for their children to be educated in Christian schools which have predominantly Christian teachers and cover all subjects from a Christian perspective.

The case challenges the decisions of the Chancellor of the Exchequer, Rachel Reeves. Interested parties and interveners include: the Commissioner for HM Revenue and Customs, the Speaker of the House of Commons and the Secretary of State for Education, Bridget Phillipson.

The hearing, which will be held at the High Court’s Administrative Court until Thursday, is a joinder application alongside the Independent Schools Council and Education not Discrimination.

If it succeeds the government must decide whether to amend or withdraw the policy. It could also appeal against the decision. If unsuccessful, the claimants’ legal teams will review the judgment and consider an appeal.

The legal claim comes after Chancellor Rachel Reeves announced a draft bill on 29 July 2024, which included plans to pass legislation through the Finance Bill for the 2024/2025 Budget which will amend the VAT Act 1994.

Private schools across the country are already beginning to close after the policy began to take effect on 1 January 2025 despite significant opposition.

Ben Snowdon, head at Emmanuel in Derby, an award-winning independent Christian school which has been providing small-group Christian education for over 30 years, says: ‘The consequences of this policy will be devastating for independent Christian schools and many other low-cost independent schools across the country. It is especially concerning to parents who are not from affluent backgrounds and who have children with special education needs. At Emmanuel School we share the government’s desire to ensure that all children have access to high-quality education, but we’re deeply concerned that the government’s VAT proposals will hinder this aim.’

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