Rachel Reeves has been accused of ignoring a legal threat sent by private schools in August warning that its VAT raid could constitute “unlawful discrimination”.

The Independent Schools Council (ISC), which represents more than 1,400 private schools, announced on Thursday that it will take legal action against the Government’s tax raid.

The group has hired Lord Pannick KC, the prominent human rights lawyer, to lead the legal challenge alongside Paul Luckhurst, of Blackstone Chambers, and Kingsley Napley, a law firm.

The ISC will seek to demonstrate that Labour’s policy undermines the human rights of some pupils under the European Convention on Human Rights (ECHR) and the Human Rights Act 1998. It is preparing to send a letter before acting in the coming weeks and You must bring the challenge to the High Court within three months.

The Telegraph has seen a legal letter sent by Kingsley Napley in August outlining the private school group concerns about politics.

It confirms that the Government was aware that pressing ahead with the VAT raid risked a potentially costly legal challenge brought on behalf of around half of the UK’s private schools.

‘Aware of legal risks’

The letter, sent directly to Mrs. Reeves, the Chancellor, and Bridget PhillipsonEducation Secretary, stated that plans to impose VAT on private schools would constitute “arbitrary discrimination in access to education on various grounds”, including faith and special educational needs (Submit).

He stated that ISC member groups had already directed Lord Pannick “to consider their legal position” and warned that “the Government should be aware of… the legal risks arising from the proposal”.

The document also called for an urgent meeting and a written response from both the Chancellor and Education Secretary, warning that the policy was being hastily implemented “in haste without fully hearing the views of the independent sector”.

The Telegraph understands that neither Ms Reeves nor Mrs Phillipson They met with industry officials, nor did they personally respond in writing to legal concerns.

Kingsley Napley, writing on behalf of the Headmasters’ Conference and the Association of Independent Schools Bursars, criticized the Labor Party’s press conferences in the run-up to the general election “and shortly afterwards” insisting that the VAT raid would not enter in force until September 2025. .

The legal letter, written a week after Reeves announced in late July that he would, in fact, move the policy forward to Jan. 1, 2025, said the rushed timeline would have “catastrophic consequences for schools and students.”

“The purpose of this letter is to draw the attention of the Government to the serious unintended consequences of their VAT proposal,” he said.

“Removing the exemption only in respect of independent schools would clearly treat them differently and less favorably than other education providers on the VAT exemption list.

“Our clients are concerned that acting quickly on the basis of an incomplete understanding of the complex needs of children and families in the sector will inevitably lead to unlawful discrimination.”

The legal threat also warned that hitting private schools with VAT would create “a series of possible “victims” in the sense of the ECHR” making your education unaffordable. He said this included 99,000 private school pupils who receive support from Send but do not have a personalized care plan that would exempt them from the VAT raid.

He also criticized the Government for almost halving the standard 12-week period for official consultations, saying the Treasury was only seeking to make “technical amendments to the VAT legislation to ensure it works as intended” rather than opinions on the proposal. as a whole.

Confident in politics

Kingsley Napley asked for a response by August 19. He received it on September 5 from James Murray, Minister of the Treasury.

He said: “I note that in your letter you raise concerns that the VAT policy breaches the provisions of the European Convention on Human Rights. The Government has considered the interaction of the policy with human rights law and is confident that the policy is consistent with all of the UK’s human rights obligations.

“He also expresses concern about the impact the January 2025 implementation date will have on schools and students.

“While I appreciate that we are halfway through the school year, the January 2025 start date gives schools and parents almost six months to prepare for the changes.”

Ms Reeves defied calls to delay the tax raid on Wednesday and confirmed in her first budget that the Government will apply VAT to private schools on the first day of 2025.

He insisted ministers would press ahead with plans to raise funds for the “94 per cent of UK children who attend state schools”.

The Treasury’s internal forecast suggested the VAT raid, as well as Labor plans to scrap business rates relief for private schools in England. with charitable statusit would raise more than £1.8bn each year by the end of the decade.

The figure is significantly higher than that of an independent report. report from the Institute of Fiscal Studieslargely supported by the Labor Party, which said the policy could raise between £1.3bn and £1.5bn a year.

The work has promised to spend the money hopes to secure 6,500 new teachers for the state sector and 3,000 new nurseries in primary schools, along with other measures to improve public education.

Julie Robinson, chief executive of ISC, said the decision to take legal action against the plans “has not been taken lightly and has been under consideration for many months.

“At every point in this debate, our attention has been focused on the children in our schools who would be negatively impacted for this policy,” he stated.

“This approach remains in place and we will defend the rights of families who have chosen independent education but may no longer be able to do so as a direct result of an unprecedented education tax.”

The Government has been contacted for comment.