ISC CEO: VAT policy poses 'devastating' risk to faith schools
Chief executive of the ISC Julie Robinson has warned that the future of most Muslim schools in the UK is under threat amid Labour's plans to impose VAT on independent school fees.
Analysis by a former VAT inspector of the accounts of 89 Islamic independent schools, commissioned by the Association of Muslim Schools (AMS) and seen by iNews, suggests 70 per cent will not be financially viable and could ultimately face closure under the policy. Prime minister Keir Starmer is being urged by MPs and sector groups to exempt independent schools charging fees of less than £5,000 a year from VAT – a move that would protect Muslim independent schools.
Speaking to the paper in light of the findings, Ms Robinson said: “Many of the faith schools we represent are small, low-fee and supported by their local community. It would be devastating for families of faith if these schools, which often have fees lower than the per-pupil spend in the state, were to disappear from the educational landscape as a result of VAT.
“We are calling on the government to delay implementation of VAT to at least September 2025 to allow an equality impact assessment to consider the consequences of their policy for faith schools and the communities they serve. In addition, those faith schools whose fees fall below the per-pupil funding level in the state sector should be exempted from VAT, allowing families to continue to choose a school that reflects their faith and values.”