A group of independent Christian schools, parents and pupils have been given permission to take their legal challenge against the government’s VAT policy to the Supreme Court.

The case centres on the government’s decision to apply a 20% VAT charge to independent school fees.

The Supreme Court has allowed an appeal on the issue of proportionality, meaning judges will now consider whether the policy strikes a fair balance between its aims and its impact on families and schools.

The challenge, supported by the Christian Legal Centre, involves schools including Emmanuel School in Derby, The Branch Christian School in Yorkshire, The King’s School in Hampshire and Wyclif Independent Christian School in South Wales.

The schools argue that the tax places an unfair burden on families choosing Christian education and risks damaging school viability.

Lawyers for the appellants also argue that the policy is applied as a blanket measure without sufficient flexibility for individual circumstances, and that no transitional arrangements were put in place for pupils already in education when the tax was introduced.

The government introduced VAT on private school fees as part of its wider education funding policy, a move that has been controversial within the independent sector.

The government's policy paper states on the measure states: "In making these changes the government aims to ensure that high quality education is available for every child and that the system is fair, with all users of private schools paying their fair share, while ensuring that pupils with the most acute needs which cannot be met in a state school, and where their place in a private school is therefore funded by their local authority, are not adversely impacted by the changes."

Speaking after the ruling, Caroline Santer, headteacher at The King’s School in Hampshire, said: “We are encouraged that the Supreme Court will now examine this case properly. The VAT policy is already forcing families into heartbreaking decisions and putting schools like ours under severe pressure. This appeal is about whether the law properly recognises the real impact on children, families and the communities we serve.”