ISC Daily News Summary

Independent school families have lost their High Court challenge against the government over its VAT on fees policy. In a single written judgment issued today, the three judges presiding over the case said they "dismiss the claims". Dame Victoria Sharp, Lord Justice Newey and Mr Justice Chamberlain said the VAT policy was "proportionate" in its aim to raise extra funds for state schools. The Independent Schools Council (ISC) engaged the leading human rights barrister Lord Pannick KC to spearhead its legal challenge, which also involved parent groups seeking a "declaration of incompatibility" under human rights laws. Had the challenge been successful, the claim would not have overturned the VAT policy in itself, but could have forced ministers to reconsider the policy or to issue exemptions. Commenting on the judgment, Julie Robinson, the ISC's chief executive, said: "This is an unprecedented tax on education and it was right that its compatibility with human rights law was tested. We would like to thank the claimants who shared their stories on key issues: SEND, faith schools, bilingual provision and girls-only education. It showcased how vital independent schools are for many families and the broad, diverse community choosing what they feel is the right education for their child." Ms Robinson added: "The ISC is carefully considering the court’s judgment and next steps. Our focus remains on supporting schools, families and children. We will continue to work to ensure the government is held to account over the negative impact this tax on education is having across independent and state schools." By Poppy Wood, The Telegraph. 

The 94-page judgment says the government was well aware that some families would no longer be able to afford independent school fees – including those with children with SEND and those attending faith schools – but that it was "entitled to consider these factors to be outweighed by the expected revenue raised for public services". Some of the schools and families who were supported by the Christian Legal Centre have said they plan to appeal the ruling. Caroline Santer, headteacher at The King's School, Hampshire, said the judgment was "a huge disappointment" to receive after two months of waiting, and they would "continue to challenge the legality of this policy". By Vanessa Clarke, BBC News.

Also covered by Nicola Woolcock for The Times, Millie Cooke for The Independent, Connie Dimsdale for iNews, Laura Hughes for the Financial Times, Eleanor Harding for the Daily Mail, Jess Glass for The Scotsman, Ali Lyon for CityAM, Danielle de Wolfe for LBC, and Tristan Kirk for the Evening Standard. 

This is a breaking news story, and the articles may be updated after today's Daily News Summary has been issued. We will continue to monitor developments and include all significant updates in Monday's edition.

Sir Keir Starmer has been accused of misleading the public over the VAT on fees policy, after suggesting it will be used to fund housing, not state school improvements. In a post shared to X following Wednesday's Spending Review, the prime minister said the tax policy had allowed ministers to announce "the largest investment in affordable housing in a generation". In response, Conservative leader Kemi Badenoch said: "[VAT on fees] has forced schools to shut, sending 1000s of pupils into state schools that are now struggling for space, teachers and money you didn't account for. And you said 'every penny' would go into state schools... but now it's housing?" Julie Robinson, chief executive of the ISC, said: "Throughout the debate on VAT, schools were promised that the money raised – if any – would go to state education. Now the revelation that it will now pay for housing. We are in the worst-case scenario, one that we have warned about since the introduction of this policy: real damage has been done to independent education without any benefit to state schools, who are also facing further cuts. It is children who will lose out as a result." By Eleanor Harding, Daily Mail. Also covered by Pieter Snepvangers in The Telegraph. 

Bishop Challoner School in Kent has announced it will be closing at the end of term because it is no longer "economically viable". In a letter to parents, the school cited the VAT policy, as well as the loss of business rates relief and increases to National Insurance, as reasons for its closure. Commenting on the closure, one parent said: "Ironically, the policy that aimed to make education fairer is doing the opposite. Pushing children from closed private schools into a struggling state system creates more pressure, not less. It reduces tax revenue, not increases it. And even if more money did somehow reach the system, there’s little confidence it would be used in a way that truly benefits pupils." By Pieter Snepvangers, The Telegraph. 

Almost one in five pupils in England are now receiving support for special educational needs and disabilities (SEND), according to figures published yesterday by the Department for Education (DfE). The number of pupils receiving SEND support has risen to over 1.7 million – an increase of 5.6 per cent, or 93,700 more pupils compared to last year. The news comes as separate statistics indicate a sharp rise in the number of tribunals concerning SEND provision, as parents challenge the support on offer for their child. Paul Whiteman, general secretary of the NAHT, said systemic change is "urgently needed" for schools and pupils. BBC News speaks to Cath, a mother from Bristol who is applying for an EHCP for her nine-year-old son – who has autism and ADHD – as his mainstream school can’t fully meet his needs without additional support. She describes the process as emotionally draining and filled with uncertainty, saying families are left "in limbo" while seeking help that often isn’t there. Ministers have said they will set out more detailed plans for reforms to the SEND system in the autumn. By Kate McGough with additional data reporting by Harriet Agerholm.