The future of most of the UK’s Muslim schools is under threat amid Labour's plans to impose VAT on independent school fees, MPs and sector groups have warned. Analysis by a former VAT inspector of the accounts of 89 Islamic independent schools, commissioned by the Association of Muslim Schools (AMS) and seen by iNews, suggests 70 per cent of them will not be financially viable and could ultimately face closure under the policy. Prime minister Keir Starmer is being urged to exempt independent schools charging fees of less than £5,000 a year from VAT – a move that would protect Muslim independent schools. Chief executive of the Independent Schools Council (ISC) Julie Robinson told the paper: "Many of the faith schools we represent are small, low-fee and supported by their local community. It would be devastating for families of faith if these schools, which often have fees lower than the per-pupil spend in the state, were to disappear from the educational landscape as a result of VAT." Calling for a delay to the policy's January implementation, she added: “Those faith schools whose fees fall below the per-pupil funding level in the state sector should be exempted from VAT, allowing families to continue to choose a school that reflects their faith and values.” Adnan Hussain, the newly elected independent MP for Blackburn, and Iqbal Mohamed, the independent MP for Dewsbury and Batley, are among those backing calls for an exemption that would “protect small low fee charging not-for-profit independent schools”. By Connie Dimsdale. 

Independent school parents have criticised Labour MP for Makerfield Josh Simons, after he said the more independent school pupils that join state schools, the better it would be for “our schools and for our country”. In an interview with GB News during which he was asked whether the party's VAT policy risks overwhelming the state sector, Mr Simons, who himself attended an independent school, said children should not be “syphoned off into a private school” or “insulated” from the state school system. Loveena Tandon, of grassroots campaign group Education not Taxation, told The Telegraph: "We are appalled by Josh Simons’ comment praising the displacement of children from their schools because of his party’s policy." By Ollie Corfe.

In a written question to the chancellor, tabled on 14 October, Liberal Democrat MP Munira Wilson asked whether independent school fees for people over the age of 18 who are (a) in education and (b) have an Education Health and Care Plan will by exempt from VAT.

In response, Labour MP James Murray said yesterday: "As per the draft VAT legislation that was published in July, the new VAT charge will apply to education and vocational training provided either at sixth forms attached to private schools or standalone private sixth form colleges. However, education and vocational training provided by further education colleges, which are classified as public sector institutions, will not be subject to VAT. The Government will confirm the final policy design at the Budget."

On the provision of education for children with special educational needs and disabilities (SEND), he said: "The change will not impact pupils with the most acute additional needs, where these can only be met in private schools. Where pupils’ places in private schools are being funded by local authorities (LAs) because their needs can only be met in private school (e.g. in England, where attendance at that private school is required by a child’s Education, Health and Care Plan (EHCP)), LAs will be able to reclaim the VAT so it does not apply to those fees." Hansard.

In a separate question on the issue of Labour's VAT policy, shadow education secretary Damian Hinds asked the chancellor whether summer schools which are operated by (a) an independent school on its own site and (b) a third party on an independent school site will be liable for VAT; and whether the liability is changed if a significant part of the course content is English language tuition. 

In response, James Murray said: "All education, vocational training, and boarding provided by a private school for a charge will be within scope of this policy, including educational summer schools run by a private school. However, if the summer school purely consists of childcare and is not educational in nature, it will remain exempt from VAT, as welfare services are exempt from VAT. For VAT purposes, education means a course, lesson, instruction, or study in any subject (whether or not that subject is normally taught in schools, colleges, or universities), regardless of where and when it takes place." Mr Murray concluded by saying the final design of Labour's VAT policy will be confirmed at the Budget on 30 October. Hansard.

In an article for Tes, Chris Woolf reflects on how independent schools have successfully expanded abroad over the last decade. Looking to the future, he writes: "How the impact of the VAT change in England plays out remains to be seen but, whatever the impact, it seems inevitable that the allure of international expansion will not be dulled - and indeed it may serve as a catalyst for others considering their future options." Reference is made to figures from the ISC and several schools in membership of the ISC's constituent associations are mentioned. Chris Woolf is international director at Wellington College International.

Government plans to open 44 new state schools in England have been placed on hold as ministers review whether they "meet a need for places in their local area and offer value for taxpayers’ money". The decision will affect mainstream secondary and primary schools that had been approved by the Conservative government using its “free school” application process. Education secretary Bridget Phillipson said the review will also consider whether projects would "provide a distinctive curriculum and any impact on existing local providers". By Richard Adams, The Guardian.

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