2024-12-12

The British Association of Private Schools (ISC) will take legal measures against tuition value-added tax (VAT)!

ISC pointed out sharply that this policy is like a sharp knife, which mercilessly damages the basic human rights of some students, which is undoubtedly a serious violation of educational equity and students‘ rights and interests.

On the afternoon of October 31, a storm between education and tax policy quietly set off. ISC, which represents more than 1,400 private schools in Britain, announced a heavy news in a solemn atmosphere: they have formally filed a lawsuit in the High Court, and the object of the lawsuit is the new policy of levying 20% value-added tax (VAT) on tuition fees of private schools by the British Labour government. ISC pointed out sharply that this policy is like a sharp knife, which mercilessly damages the basic human rights of some students, which is undoubtedly a serious violation of educational equity and students' rights and interests.

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Back to last Thursday, at that crucial board meeting, members of the Independent School Committee (ISC), including most private schools in Britain, gathered together. In the meeting room, the atmosphere is serious and dignified, and every member knows the great significance of this decision. After intense discussion and careful voting, it was finally decided to actively pave the way for the upcoming legal action.

In order to occupy a favorable position in this difficult legal battle, ISC hired David Pannick KC, a famous barrister in the case of "people's accusation". Lord Pannick, with his excellent legal literacy and rich practical experience, was entrusted with a heavy responsibility to lead this challenging legal struggle. In this lawsuit, ISC will represent the parents of children with special educational needs and disabled children, and fight for their educational rights and interests, because these disadvantaged groups are already at a disadvantage in the allocation of educational resources, and the new tax policy may make them suffer a greater impact.

From the government's point of view, they have their own calculations and expectations for this tax plan. According to the government's estimation, in the coming year, by imposing the tuition value-added tax on private schools, an additional fund of up to 460 million pounds will be raised. This huge sum of money will be like showers, nourishing the vast educational soil of public schools. Over time, by 2029/30, this figure is expected to further climb to 1.7 billion pounds. The government hopes that through such fund allocation, it will inject strong development momentum into public education.

However, any policy is like a double-edged sword. According to the data released by the government, this tax plan will bring a big impact to private schools. The most direct impact is tuition, which is expected to increase by an average of 10%. Such a large increase in tuition fees will undoubtedly become a heavy burden for many families. Under the long-term influence, about 35,000 students may be forced to transfer from private schools to public schools, which accounts for about 6% of the total number of students in private schools. However, the government also hopes to look at this change from another angle. They hope that the funds raised through this tax can train more outstanding educational talents for England. It is estimated that this fund is expected to help fund the training of 6,500 new teachers in England and provide a strong teacher guarantee for improving the quality of education in public schools. However, whether such a result is fair to private schools and parents of some students needs to be further measured on the legal scale.

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Private school organizations are deeply concerned about education equity and students' rights and interests, and resolutely decide to launch judicial review actions on relevant government policies. This action has a clear focus, that is, focusing on examining whether government policies violate the European Convention on Human Rights. On the battlefield of law, they will compete fiercely around two core rights and interests: one is to prohibit discrimination, a vital right, to ensure that every child can be treated equally before education and not be treated unreasonably differently; The second is the right to education, which is the cornerstone of every child's growth and development and must not be violated.

In this legal action, the legal claimants are a special group of parents. They are in a difficult situation and are full of worries that they can't find suitable alternative education resources for their children in the public education department. Among them, the families of children with special educational needs are in deep trouble. Their children may not be fully satisfied in the public education system because of their special educational needs, and private education was originally their hope, but now it is at risk of losing this way because of the government's policy of levying value-added tax on private school tuition fees.

The chief executives of private school organizations firmly expressed their position and determination. He stressed that the organization will go all out to defend the rights of those families who have chosen independent education out of consideration for their children's education, but now they may be forced to give up because of the tuition value-added tax policy. He also appealed to the government, hoping that the government can work together with private school organizations to reduce the potential risks brought by this policy. These risks are like clouds hanging over professional art education, low-fee church schools, girls' schools and the education of gifted children, threatening their chances of receiving quality education, and their educational path should not be blocked because of unreasonable policies.

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Prior to this, the British Ministry of Finance, based on its forecast and analysis, believed that the move of levying value-added tax (VAT) on tuition fees of private schools could bring billions of pounds of income to the national finance every year. The Chancellor of the Exchequer Reeves also said that the government plans to use the funds raised to benefit "94% children in public schools in Britain". This idea seems beautiful, but it faces two key problems in the implementation process.

The first core issue is that with the collection of value-added tax on private school tuition fees, private school tuition fees will inevitably rise, which will lead to a decrease in the number of children entering private schools, but how much will it be reduced? The uncertainty of this data has brought great challenges to the distribution planning of the whole educational resources. Because this is not only related to the survival and development of private schools, but also affects the educational path of those families who originally chose private education.

The second core question is whether public schools are ready to provide adequate help to those children who may be transferred to public schools because of the rising tuition fees in private schools. After all, public schools need to adjust and optimize teachers, teaching facilities, curriculum arrangements and other aspects to adapt to the changes in the number of students and students' needs.

Edinburgh, as one of the cities with the highest concentration of children in private education in Britain, is particularly typical. Relevant data show that in Edinburgh, the proportion of children in private education in the total number of middle school students is as high as 21%, which is much higher than the average level of 5.9% in Britain. For example, George Heriot's School, a prestigious school, has long been concerned. In the public's cognition, it is considered as the source of inspiration for Hogwarts School of Witchcraft and Wizardry in Harry Potter, bearing the fantasies and longings of countless people. The school is huge, with about 1,600 students aged 4-18. Its unique geographical location-behind Edinburgh Castle-adds a bit of mystery to it. But now, the implementation of the tuition value-added tax policy in private schools also makes this school, like other private schools, face many variables.

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This school, which has a long history of nearly 400 years, stands there quietly like a monument in education. Looking from the school, the charming scenery of Edinburgh Castle is panoramic, like a picture scroll intertwined with history and reality. Here, there are also a group of outstanding alumni circles, who are like bright stars, shining with unique light in various fields.

Ian and Kenny Milne, former Scottish, British and Irish Lions rugby players, seem to have their heroic spirit in front of them, and their spirit of hard work and forge ahead has become a part of the school spirit. There is also Tasmina Ahmed Sheikh OBE, the first female Muslim MP in Scotland. With her wisdom and courage, she broke through many obstacles, showed extraordinary influence on the political stage and added endless glory to her alma mater.

The magnificent architectural appearance of the school and the unique dome tower give people an eternal illusion, as if it can maintain its majesty and solemnity forever in the long river of years. However, the reality is not the case. Under the influence of the New Labour government's plan to raise taxes on private schools, this school has not been able to stay out of it and has become one of the focuses of the plan.

At present, the school has increased the tuition fees in 2024/25 by 6%, which undoubtedly brought some economic pressure to many families. Although it is not clear at this stage what impact the further increase in value-added tax will have on schools and students' families, we can see some clues from the last letter sent by the school to parents, suggesting that the school will not bear all the increased expenses due to changes in tax policies alone.

Different institutions have different predictions about the possible changes in the enrollment rate of private schools caused by the increase in value-added tax. IFS predicts that the increase in value-added tax will reduce the enrollment rate of private schools by 3% to 7%, but this figure is controversial in the view of the British Private Schools Council. They pointed out that a report in 2018 surveyed tens of thousands of parents of about 150 private schools in Britain, and the results showed that at the end of the first year of VAT implementation, 10.7% of students may drop out of school, and in the next four years, the number of dropouts will be further reduced by 6.4%. The difference of these data also reflects the complexity and uncertainty of this policy impact assessment.

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At the same time, some people who are critical of the Labour Party's policies have expressed deep concern. They believe that public schools may not be able to accept a large number of children who would have attended private schools. The situation in Edinburgh is particularly interesting. The most popular public schools here are located in school districts where a large number of children attend private schools. This is like a delicate educational balance system. Once it is broken, the consequences are unpredictable.

Imagine, if only a small part of the 9310 private education students in Edinburgh are transferred to public schools, will it bring greater pressure to local public schools than to areas with fewer private school students? This is a problem that cannot be ignored. At certain critical moments, the resources of local public schools are limited, and they may not be able to easily accommodate any extra students who would otherwise study in private schools. This shortage of resources is not only reflected in the number of classrooms, teaching equipment and other hardware aspects, but also in the software aspects such as teachers' strength and curriculum arrangement.

However, with the passage of time, there are also some changing factors. The influence of the "baby boom" in the early 21st century is gradually fading, which means that the overall space of public schools will increase in the next few years. This seems to provide some buffer space for public schools to accept students who may transfer to other schools, but whether this space is enough to cope with the potential transfer tide is still unknown and needs further observation and analysis.

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Private schools have always been characterized by high tuition fees. In the case of day schools, the average annual fee is about 16,000 pounds, which is already a big expense. The cost of boarding schools is even higher, with an average of 39,000 pounds, which is enough for many families to hesitate when choosing. What's more, the annual tuition of some top schools actually exceeds 60,000 pounds. Such a high cost threshold has blocked many families from the door of high-quality private education.

Nowadays, the addition of value-added tax is undoubtedly adding a huge stone to parents' already heavy economic burden. The government's move to levy additional taxes and fees on fee-paying schools will inevitably lead to higher tuition fees for most schools. However, the specific increase in tuition fees is entirely determined by the school itself, which makes the increase in tuition fees more complicated and unpredictable.

In this case, parents need to be more proactive. Planning in advance is a crucial first step. Parents should have a clear consideration of the family's financial situation and their children's education plan. At the same time, it is also indispensable to pay close attention to the dynamics of the school, including the school's plan for tuition adjustment, possible preferential policies or scholarships. In addition, seeking professional advice is also a key link, such as consulting professionals such as education consultants and financial planners, in order to find the best balance between children's education and family financial stability in this game between education and economy.