ISC Daily News Summary

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."