UK Muslim schools threatened by new tax on private tuition fees

The survival of Britain’s Muslim schools is under threat from a new 20% tax on private tuition fees. Recent analysis reveals that 70% of independent Islamic schools risk no longer being financially viable if VAT is implemented in January 2025, which could force cascading closures.

MPs are calling on Opposition Leader Sir Keir Starmer to introduce an exemption for schools with tuition fees of less than £5,000 a year. According to them, without this measure, public schools will not be able to accommodate all the students impacted by these closures.

The Association of Muslim Schools (AMS) warns that imposing the tax could betray promises made by the government in support of faith schools. Its president, Ashfaque Chowdhury, deplores the fact that small community schools are confused with elitist private establishments.

The consequences are already being felt, as shown by the Al-Khair school in Oldbury, which lost 30 students after the announcement of this tax. Its director, Sajad Akram, fears an inevitable 20% increase in fees, and, in this context, the school could see its numbers decline further.

The threat of this tax measure raises concerns about the sustainability of Muslim faith-based education, particularly in low-income communities. If no exemption is put in place, the tax risks forcing the closure of many Muslim schools in the UK, depriving disadvantaged communities of accessible faith education. This could also damage Labor’s electoral support among Britain’s large Muslim community.