Labour have admitted they rejected pleas to delay the ‘disruptive’ mid-year private school VAT grab to net almost £1 billion extra.
Lawyers for the Government have told the High Court bringing forward the date by eight months would raise ‘an additional revenue of over £900 million’.
They said they did it ‘sooner rather than later’ to meet the ‘central objective’ of ‘raising revenue’, documents submitted to the court show.
This was despite officials warning this option would be the ‘most disruptive to pupils’ as it fell in the middle of the school year.
The new 20 per cent VAT on private school fees came into effect on January 1, leaving schools and families less than two months to prepare after the details were confirmed.
Schools say they were originally led to believe the start date would be September 2025, the beginning of the next school year.
The details were revealed in Judicial Review proceedings, where families and private schools are challenging the Government’s policy.
Court documents include a memo from Treasury officials to the new ministers on July 6, two days after the General Election.
Labour have admitted they rejected pleas to delay the ‘disruptive’ mid-year private school VAT grab to net almost £1 billion extra (pictured: children not involved in the case protesting)
Lawyers for the Government told the High Court bringing forward the date by eight months would raise ‘an additional revenue of over £900 million’ (pictured: children not involved in the case protesting)
Government lawyers said the move met the ‘central objective’ of ‘raising revenue’, documents submitted to the court show (pictured: families not involved in the case protesting)
It says: ‘Department for Education (DfE) have noted it may be less disruptive for schools and parents, and allow more time for schools… to prepare, if the changes took effect from August 2025 to capture the September 2025 term.’
The memo puts forward the ‘pros and cons’ of different dates, and notes that although January would be ‘most disruptive for pupils’, September would mean ‘£900 million VAT revenue foregone’.
Separate written submissions from Government lawyers say: ‘Given the central objective of the policy to raise revenue to help fund the Government’s education priorities, there was a clear fiscal incentive to implement sooner rather than later.’
They add: ‘The result of bringing the measure in for educational services provided on or after 1 January 2025, rather than for the commencement of the 2025/26 school year, is that the State will raise additional revenue of over £900 million.’
Sir James Eadie KC, who wrote the submissions on behalf of the Government, said that ‘there is nothing unfair or unreasonable about the decision’ because it was contained in Labour’s manifesto.
He added: ‘It was projected that only a very small number of pupils would be displaced immediately by the measure, with schools and parents taking steps to minimise displacement during particular educational phases.’
Sir James’ submission also reveals ministers were ‘aware’ that some children with SEND would be displaced because their ‘families would no longer be able to afford private school fees’.
However, he adds: ‘Parliament judged that the revenue to be raised for public services – including state education – justified these hardships.’
Charlie Gunns, 12, who has transverse myelitis, and his mother Leanne, came from their home in Norwich to support the claimants
The case has attracted supporters from all over the country, with protesters not involved in the case attending the High Court with placards
Claimants Stephen White and son Josiah, 14, who have chosen not to be anonymous, attended the High Court with sister Joy
The Treasury memo also reveals officials thought 54,000 pupils would be displaced into the state sector UK-wide, most within two years – higher than other Government estimates of 35,000.
In addition, they admitted there would be a ‘small number of local authority areas’ where ‘increased demand for state school places will outstrip existing supply’, especially in sixth forms.
The memo also confirms the Government predicted as early as July that 100 extra private schools would close due to the tax.
The challenge is being brought on the basis the tax is a breach of children’s right to education under the European Convention of Human Rights.
The various claimant families also say it is ‘discriminatory’ – either because their child has SEND, has a preference for a religious education, or because they need an all-girls environment.
Among the claimants are Jewish pupils at specialist religious private schools who fear anti-Semitic attacks if they go into the state sector.
There is also a girl who had to attend a single-sex private school – the only all-girls school in her area – due to ‘harassment’ by boys at her co-educational state school.
And there are also claimants using Christian private schools because they cannot obtain the same religious education in the state system.
One is Stephen White, who has chosen not to be anonymous, and whose eldest four children are at Bradford Christian School, a private Christian school in West Yorkshire.
On Tuesday, he helped stage a protest outside the High Court to mark the opening of the case, joined by dozens of other parents from around the country not involved in the case.
A Government spokesman said: ‘We do not comment on ongoing litigation.’