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High Court fast-tracks legal challenge against Labour’s VAT on fees policy
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Independent sector
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A legal challenge being brought against Labour’s VAT on fees policy will be fast-tracked through the High Court over concerns it breaches the human rights of children. Speaking on Friday, Lord Pannick said parents need to be given certainty, as the effects of the tax policy are already being felt. Although government lawyers opposed the request and pleaded for more time to consider the evidence, Mr Justice Chamberlain sided with independent schools and agreed to expedite the claim. The court also agreed that the claim brought by the Independent Schools Council (ISC) should be heard alongside a separate challenge brought by Sinclairslaw on behalf of independent school parents. No official date has been set, but The Telegraph understands it will likely be addressed before the Easter recess, potentially as soon as the first week of April. Commenting on the news, chief executive of the ISC Julie Robinson said: “This is an unprecedented tax on education and it is right that its compatibility with human rights law is tested. We are glad that the High Court has recognised the urgency of this case and we look forward to making our legal arguments as soon as possible." By Pieter Snepvangers.
Christian schools, parents, and pupils have launched a judicial review against the VAT on fees policy, arguing it breaches their right to religious freedom. A preliminary High Court hearing took place on Friday, and the challenge includes the Emmanuel School (Derby) Limited and The King's School. The legal team acting for the parents bringing the claim said that the "heavy secularisation of state schools" means that children would not be taught in line with their family's Christian beliefs. Reference is also made to the legal challenge being brought by the ISC. By Jonathan Ames, The Times.
Gifted students from lower-income families attending independent schools will be exempt from VAT charges on their fees, the government has announced. Lord Livermore, the Treasury minister, revealed the change while answering a question in parliament, stating that financial support would be provided to cover the tax for pupils enrolled in the Music and Dance Scheme, a grant for specialist schools. The scheme has been extended to include families earning less than £45,000 a year to offset the added VAT on fees they would have otherwise paid. Welcoming the change but calling for ministers to take further action, Rudolf Eliott Lockhart, chief executive of the Independent Schools Association (ISA), said: “I am glad that the government recognises the range of pupils from different financial backgrounds that attend independent schools, and thus the need to exempt those on their Music and Dance Scheme from VAT if their families earn under £45,000 a year. I hope the government will consider extending this to all families with incomes under £45,000 who use independent schools.” By Ethan Croft, The Sunday Telegraph.
A Schools Week investigation has found that fewer than 12 schools have cited the government's VAT on fees policy as the reason for their closure. While some schools did mention VAT as a contributing factor, some said they had already been facing financial difficulties before the policy took effect. The paper explores the wider issue of the tax policy and its potential impact on independent schools. Julie Robinson is quoted, warning that the impact of the VAT policy would increase “over the coming months and years". Ms Robinson adds that "the government’s triple tax whammy on independent schools will prove a bridge too far for schools already under financial pressure". By Rosa Furneaux.
Chinese investors are targeting independent schools as concerns grow that Labour’s VAT on fees policy is forcing some to close, the Daily Mail reports. Education experts have reported increased interest from Chinese firms seeking to buy independent schools amid the new tax policy, with at least 27 schools having been acquired by Chinese companies. By Kamal Sultan.
According to iNews, the VAT policy has sparked a drop in international parents choosing UK independent schools. Juliane von Bülow, managing director at BetterSchool Internatsberatung, an agent based in Germany, said: “We have seen parents shocked by the VAT crisis reconsider their decision to think about the UK only. Parents are asking whether it’s still worth it to pay for a UK education or whether they should find other alternatives which offer more for the same money.” By Connie Dimsdale.
The Telegraph talks to former GB Para-athlete Jonny Huntington who credits his independent school education with shaping his resilience and enabling his historic solo ski trek to the South Pole. Mr Huntington tells the paper he believes the VAT on fees policy would have stopped him from making history in Antarctica because the higher fees would have made independent education unaffordable for his family. Mr Huntington condemns the tax policy as “very poorly thought-out,” emphasising that taxing education undermines opportunities and disproportionately affects families working hard to provide better prospects for their children. By Albert Tait.
The Telegraph's associate comment editor, Michael Mosbacher, writes that England’s traditional prep schools are under "unprecedented pressure" as a result of "organic" changes in education as well as the removal of business rates relief and Labour's VAT on fees policy. He warns that the sector faces a shift towards standardised, less personalised education, potentially ending the unique and diverse educational experience that prep schools offer. Mr Mosbacher concludes: "If a combination of Labour tax hikes and corporate takeovers kill them off, Britain will be the poorer for it."
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Letter: 'Imposing VAT on education is not righting an historic injustice – it is creating one'
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Letters
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In a letter to The Telegraph, principal and CEO of Stamford School Mark Steed says the government’s imposition of VAT on independent school fees is misleadingly framed as ending a "tax break", despite education having been VAT-exempt since 1973. Mr Steed adds that the policy has created a two-tier system for fee-charging educational institutions, which is pricing many families out of independent schooling. The letter appears halfway down the page.
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Independent schools should be given funding to widen access, says commission
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Independent sector
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Independent schools should receive pupil premium funding and a tax exemption for disadvantaged pupils to help them widen access, according to a report published by think tank Civitas. The report from the Commission on the Future of Independent Schools, which is funded by the ISC, also recommends that partnerships between state and independent schools are accredited in the long term. By Cerys Turner, Tes.
The Times also reports on the report, highlighting findings that show two thirds of parents receive help from family, friends or schools to pay independent school fees. By Nicola Woolcock.
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House of Commons written answers: Independent schools
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Political
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In a written question in the House of Commons, Opposition Assistant Whip Ben Obese-Jecty asked what steps the education secretary is taking to monitor capacity in state schools in the context of potential pupil transfers from the independent to state sector following the introduction of VAT on school fees. Responding, Parliamentary Under-Secretary for the Department for Education Stephen Morgan said: "The government predicts that 35,000 pupils will move into UK state schools in the long-term steady state following the removal of the VAT exemption to school fees. As such, the impact on the state education system as a whole is expected to be small."
In a question for the education secretary, Conservative MP Dr Neil Shastri-Hurst asked what estimate has been made of the value of charity given to (a) state schools and (b) local communities by independent schools in each of the last five years. Stephen Morgan replied, saying: "The department does not collect data about the value of charity given to state schools and local communities by private schools. Therefore, my right hon. Friend, the Secretary of State for Education has not made an estimate of its value in each of the last five years. The Independent Schools Council, which represents over 1,400 private schools belonging to an association, publishes an annual report which sets out the support private schools give to schools in the state sector through partnership working and bursaries."
Shadow Secretary of State for Levelling Up, Housing and Communities Kevin Hollinrake asked the chancellor whether changes to charitable business rates relief will affect free schools. Exchequer Secretary to the Treasury James Murray said the government is removing business rates relief for independent schools in England, defining a "private school" as one charging fees for full-time education. Mr Murray explained that free schools, being academies, do not charge fees and will not be affected by this change.
Separately, Mr Hollinrake asked whether the socio-economic duty will apply to local education authority decisions on (a) parents with children joining the state system from independent schools and (b) other school admissions. In response, Anneliese Dodds, who currently holds the posts of Minister of State (Development), and Minister of State (Minister for Women and Equalities), said: "The government is committed to commencing the socio-economic duty in the Equality Act 2010. The duty will require specified public bodies, when making strategic decisions, to consider actively how their decisions might help to reduce the inequalities associated with socio-economic disadvantage. Public bodies specified by the duty include county and district councils, the Greater London Authority, and London Borough councils. We will support public bodies to ensure that they have clarity as to how to meet the duty in readiness for commencement." Hansard.
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Third of pupils now receive extra time in exams, figures show
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Examinations
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Nearly 420,000 pupils in England are getting extra time in their GCSE and A-level exams, according to Ofqual - four times as many as a decade ago. The figures also show 42 per cent of children at independent schools receive extra time, compared to 27 per cent of those at state schools. Children with learning difficulties and disabilities are eligible for extra time, and some have suggested that the rise reflects a growth in special educational needs (SEND). Julie Robinson, chief executive of the ISC, is quoted, saying: "Independent schools are working within a legitimate system in requesting extra time for pupils, which requires robust evidence to be granted. There is a higher proportion of young people with SEND in independent schools." By Louise Eccles, The Sunday Times.
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Charities call for clearer guidance on tackling peer-on-peer abuse
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Safeguarding
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Rape Crisis and other charities have written to education secretary Bridget Phillipson and Jess Phillips, the safeguarding minister, calling for better guidance for schools on how to address peer-on-peer sexual abuse among pupils. The letter warned that many victims were "failed" and "retraumatised" by schools, which often interpreted the police not pursuing a conviction as "cause to simply go back to normal". Ciara Bergman, chief executive of Rape Crisis, said: "It needs to be made clear that children who have been sexually assaulted or abused at school are entitled to a supportive response from their school, irrespective of any criminal justice processes." By Anna Fazackerley, The Observer.
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The Independent Schools Council (ISC) monitors the national and educational press in order to keep independent schools up-to-date with relevant education news. The DNS is a service primarily for schools in membership of ISC associations, although other interested parties can choose to sign-up. We endeavour to include relevant news and commentary and, wherever possible, notable public letters. Where capacity allows, we may include links to ISC blogs, press statements and information about school or association events. News stories are selected based on their relevance to the independent sector as a whole. Editorial control of the DNS remains solely with the ISC.
Sign-up to the email service is available on our website.
Members can contact the ISC if they know in advance of news, letters or opinions that are likely to feature in the media, or are aware of existing coverage which they would like to see featured in the DNS.
Headlines and first-line summaries are written by the ISC with the link directing to the source material. You should read and comply with the terms and conditions of the websites to which we link.
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