Christian schools seek judicial review over Labour VAT policy

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Independent Christian schools, parents and students are pursuing a judicial review to challenge the Labour government's plans to impose VAT on private school fees.

They argue that the policy, which comes into effect on January 1, discriminates against Christian parents and will result in the closure of Christian schools.

Supported by the Christian Legal Centre (CLC), they also say that the policy violates their parental rights to educate their children in accordance with their religious beliefs.

Among the schools taking action are Emmanuel School in Derby, the Branch Christian School in Yorkshire, and the King's School in Hampshire.

They want the courts to declare the policy unlawful and order the government to amend or withdraw it completely. 

Caroline Santer, headteacher at the King's School in Hampshire, called the proposals "short-sighted" and said that the government "does not appear to realise, or care, about the impact they will have on the UK's education system".

"The VAT increase affects families who are not from affluent backgrounds but want to send their children to a Christian school. Following the draft legislation, a number of families have been forced to take out loans," she said. 

"The school will also feel the effect of the VAT increase as we will lose 80 per cent relief on business rates. The policy will also have a significant impact on teachers' wages and on the ability of independent schools to maintain their buildings."

Ben Snowdon, headteacher at Emmanuel School in Derby, said that the consequences of the policy could be "devastating" for Christian and other independent schools, and that it would mean an end to diversity and choice in education for lower income families. 

"It is especially concerning to parents who are not from affluent backgrounds and who have children with special education needs," he said. 

"Emmanuel is an incredibly diverse community with many of our families making huge financial sacrifices to send their children because of our Christian ethos and because of our reputation within their communities.

"A significant proportion of the children in our school are from lower-income families who simply cannot afford additional school fees.

"These families have chosen low-cost private education at immense personal sacrifice in order to access Christian education which is not available to them in state schools or because their children have SEN (special educational needs).

"If these children are forced to leave the school or the school becomes financially unviable and fails, the government will have to bear 100 per cent of the cost of their education, which the government currently receives for free."

Christian parent Stephen White said it was unlikely that he could afford to keep his children in an independent Christian school after the VAT changes come into effect, and that he is now having to consider homeschooling. 

"We believe this is wrong and discriminatory and must be challenged," he said. 

CLC chief executive Andrea Williams said: "VAT will make independent faith schooling unaffordable for many families and may force some small faith schools to close.

"Around 370,000 pupils attend independent faith schools in England alone, the majority of which are Christian schools. Fees at these schools are typically below the independent school average and sometimes below the state per-pupil funding levels.

"It is unfair, and we argue, it is a breach of their human right to impose VAT on such schools. Labour must row back on this policy urgently. If they don't, we will have no choice but to pursue every legal avenue in the pursuit of justice and protection of independent Christian schools in this country."

The policy is due to come into effect nationwide as VAT is not devolved. Several schools across the UK have already closed, citing the new VAT policy as a factor. They include Scotland's only Catholic boarding school, Kilgraston in Perthshire, and Cedars Christian school in Greenock, west Scotland. St Joseph's Preparatory School in Stoke-on-Trent is to close in December.

During a debate in the Commons this week, Damian Hinds raised a question about the fate of children at religious schools where there is no faith school provision in the state sector. 

Responding on behalf of the government, Stephen Morgan said, "Those schools meet the needs of dedicated faith communities, often at low cost. I know that Treasury colleagues have met representatives from those schools to ensure fairness." 

Speaking in the Lords last month, the Bishop of Southwark, Christopher Chessun, said he was "deeply concerned" about the impact of the plans being enacted "at such short notice", and raised concerns about how cathedral and choir schools would be affected. 

"Many of these are small schools, and therefore the impact will be disproportionately severe," he said. 

"I am a grammar school boy and I could not sing the 'Eton Boating Song' if you paid me, yet I am deeply concerned about the adverse and unintended consequences which this manifesto commitment will have unless it is applied with much greater sensitivity — and possibly also phased in — affecting, as this does, the enormous variety of private school provision, about which we have heard and which is committed to public benefit." 

Speaking in the same debate, Catholic crossbench peer Lord Alton said that the plans will disproportionately affect middle-income families and may contravene the European Convention on Human Rights.

"These are the families, many of whom have made great sacrifices for their children's education, who will suffer, not those with ultra deep pockets," he said.

"Top of our concerns should be the impact on children. It clearly isn't. This taxation is unjust, unfair, may be in breach of the ECHR and will likely worsen educational inequalities.

"The government should dwell a pause and think again."