A recruitment and retention crisis in the armed forces will grow unless the government exempts military families from paying VAT on private school fees, insiders have warned.
They say a promise to increase an allowance funded by the Ministry of Defence (MoD) that helps to cover the cost of school fees does not go far enough, and that highly experienced personnel – officers and other ranks – will quit if Rachel Reeves does not perform a U-turn.
Such a loss in skills would weaken UK defences at a time of rising threats, the insiders say.
A soldier with a child at boarding school, who asked to remain anonymous, said: “I will have to leave military service, as I will not inflict another school move on my child.”
He said: “On one side, the chancellor wore a poppy during her budget announcement, and then proceeded to deal a damaging blow to members of His Majesty’s Armed Forces by not including a simple exemption.”
Image: Defence Secretary John Healey joins serving military personnel to hand out poppies. Pic: PA
An army spouse, who asked for her identity to be protected because her husband is serving, said: “This is people’s children. This is people’s money in their pocket.”
More on Defence
Related Topics:
She told Sky News: “If there is a nice job offer outside the military… that is going to look way, way more attractive than it did a few months ago. The army is in a recruitment and retention crisis, so why would you do something like this?”
Offering a sense of the scale of the potential impact, the Army Families Federation, an independent charity, said nearly 70% of families that shared evidence with it about the policy said without protection from the full cost of the VAT they would consider quitting the service.
Advertisement
The mobile nature of military life – with postings around the UK and overseas – often requires service personnel to move every few years, with any children they have forced to relocate with them, transiting in and out of different schools.
To protect against this disruption some parents decide to send their kids to private school – often to board.
More than 2,000 of these personnel – the majority of them in the army – claim money from the MoD to help cover the cost of private school fees.
Follow Sky News on WhatsApp
Keep up with all the latest news from the UK and around the world by following Sky News
The Continuity of Education Allowance (CEA) funds up to 90% of tuition fees but families must pay a minimum of 10%.
Many of those who take this option will have agonised over the affordability of the portion they will still pay, which can amount to tens of thousands of pounds per year.
They will now have to pay more to cover the VAT on this portion of the bill – or else pull their children out of school, a nightmare option, especially for those serving abroad.
In addition, some other military families that do not qualify for the education allowance – which is only allocated under a very strict criteria – still opt to put their children into boarding school to ensure the continuity of their education at a single location.
They will have no protection from any of the VAT burden.
Image: James Cartlidge. Pic: PA
James Cartlidge, the shadow defence secretary, said he has received a lot of messages from impacted families and is urging the government to give them an exemption.
“The emails I’ve had are saying: I’ve got to choose between my child and serving my country,” said Mr Cartlidge, who previously served as a Conservative defence minister.
“The government really needs to respond to this quickly.”
An MoD spokesperson said: “We greatly value the contribution of our serving personnel and we provide the Continuity of Education Allowance to ensure that the need for the mobility of service personnel does not interfere with the education of their children.
“In line with how the allowance normally operates, the MoD will continue to pay up to 90% of private school fees following the VAT changes on 1 January by uprating the current cap rates to take into account any increases in private school fees.”
Reform UK’s deputy leader has defended a ban on a local newspaper handed down by a council leader in a free speech row.
Nottinghamshire County Council leader Mick Barton banned its Reform councillors, who hold 41 of 66 seats, from speaking to journalists from the Nottingham Post, its digital site Nottinghamshire Live and its local democracy reporters on Tuesday.
This came after the newspaper published an article reporting on two Reform councillors allegedly saying they could face suspension if they did not back Mr Barton’s preferred structure for the reorganisation of the council.
Richard Tice, Reform’s deputy leader, has defended the ban, telling Sky News’ presenter Jonathan Samuels that Nottinghamshire Live “distorts and completely acts in an irresponsible way” and therefore councillors were “entitled to say ‘we’re going to talk to other parts of the media, not yourselves'”.
When challenged that this was going against the principle of democracy, Reform UK’s deputy leader replied: “That’s the whole point of a democracy. You pick and choose who you speak to, and sometimes you speak to friends, sometimes you don’t.
“But it is equally that a media organisation does have a responsibility also to present some things in a sensible way, presenting both sides of a debate or an argument. And that was the issue.”
Natalie Fahy, senior editor at Nottinghamshire Live, told Sky News she was “absolutely gobsmacked” by Mr Tice’s comments, as he “knows absolutely nothing about what the Nottingham Post publishes day in day out”.
More on Reform Uk
Related Topics:
She said: “As a newspaper regulated by IPSO (Independent Press Standards Organisation), we are actually allowed to be biased if we want to be, but we try to maintain an overall balance on our coverage (…) We’ve not distorted any facts whatsoever.”
Image: Mr Tice said he wants to be held to account by people “who are not completely distorted and biased”
Mr Tice was asked whether he only wanted to be held to account by people that he likes and agrees with. He replied: “I want to be held to account by people who are going to be rational, sensible and not completely distorted and biased.”
“That’s not a democratic society, that’s not free press. Sometimes there is going to be negative stuff, and sometimes we will be going to have to criticise stuff. It’s very dangerous what he (Mr Tice) said – you can’t just have a positive, unquestioning press,” Ms Fahy warned.
She added that the Nottingham Post was not an anti-Reform publication and that its journalists appreciate that many of their readers vote for Reform. “We just want to find out on behalf of our readers what they voted for,” Ms Fahy said.
‘Rehearsal for Nigel Farage’s government’
Ms Fahy, who alerted Mr Tice to the ban before he spoke to Sky News on Friday, urged Nigel Farage to get involved.
“This is a rehearsal for Nigel Farage’s government – he needs to step in and say that this is not acceptable behaviour if he wants to be taken seriously,” the senior editor warned.
But Mr Tice indicated that Mr Farage would not wade into the row, saying: “It’s a local row and I’m sure they’ll sort it out.”
The ban might not end with the Nottingham Post, as Mr Barton, the Nottinghamshire County Council leader, warned his party would also “not be engaging with any other media outlet we consider to be consistently misrepresenting our politics, actions, or intentions”.
Image: Nigel Farage
As part of the ban, the authority will also stop sending press releases to the outlet and won’t invite them to council events, although it cannot prevent them from attending public meetings.
Ms Fahy published an opinion piece after the ban was announced, telling readers: “Reform UK makes huge noises about respecting free speech, transparency, honesty and being straight-talking. This boycott flies in the face of all of that. When the press is not welcome, you know democracy itself is in danger.
“If we’re heading for a Reform government, you’ll see this echoed on the national stage. And maybe at some point, people will look back and wonder where it all started. If we don’t fight back against this authoritarian edict, we’re heading down a very dark and dangerous path for everyone in this country.
“Grow up Mick Barton, and start accepting a free press is there to hold you and your councillors to account. You’ve got my number and I am waiting for your call.”
‘Not just press being shut out’
The leader of the opposition at Nottinghamshire County Council, Conservative councillor Sam Smith, said on X: “The free press play a key role in keeping residents informed of actions being taken by decision makers and in return the press express the views of residents to the politicians and public in publishing balanced articles.
“As a leader of the county council, I welcomed that scrutiny. Sometimes it was tough reading, but it helped ensure my team and I were always focused on delivering on the priorities of local residents.
“It’s not just the press Reform are shutting out in Nottinghamshire. It’s the voice and views of residents.”
Mr Barton said the decision had not been made “lightly”, adding: “It is not about silencing journalism, it is about upholding the principle that freedom of speech must be paired with responsibility and honesty.”
A temporary injunction that would have blocked asylum seekers from being housed at the Bell Hotel in Essex has been overturned at the Court of Appeal.
The Home Office and Somani Hotels, which owns the Bell Hotel in Epping, have successfully challenged a High Court ruling. Today’s hearing saw both parties win the right to appeal, before also winning the appeals themselves.
Lord Justice Bean, sitting with Lady Justice Nicola Davies and Lord Justice Cobb, quashed an earlier injunction granted to Epping Forest District Council, saying: “We allow the appeals and we set aside the injunction imposed on 19 August 2025.”
This means asylum seekers will stay in the accommodation in Essex past 12 September. There are currently 138 asylum seekers being housed at the hotel.
Image: Lord Justice Bean delivering the ruling. Pic: PA
Last week, the initial court ruling centred on the change in use of the premises without consent from the local authority.
But after the Home Office argued its case – which involved stating it had the right to appeal – judges have backed the government’s side.
The decision avoids a precedent for other councils to appeal against asylum hotels in their areas.
Council ‘will continue the fight’
A councillor for Epping said the “battle is not over” after the Court of Appeal ruling and vowed the council would “continue the fight”.
Image: Councillor Ken Williamson. Pic: PA
Speaking outside the London court, Ken Williamson, said: “We are deeply disappointed by the outcome of today’s hearing.
“The concern and motivation of Epping Forest District Council throughout has been the wellbeing of our local residents, where we had clarity and resolution, we now have doubt and confusion.”
The council could still be granted an injunction following a full hearing of the legal claim, which is due to be heard in October.
Please use Chrome browser for a more accessible video player
6:44
Reform UK’s deputy leader Richard Tice: Epping residents should feel ‘angry and frustrated’
Reform UK leader Nigel Farage also criticised the ruling, claiming that “illegal migrants have more rights than the British people under (Keir) Starmer”.
Tory leader Kemi Badenoch echoed this in her own statement, saying: “Keir Starmer has shown that he puts the rights of illegal immigrants above the rights of British people who just want to feel safe in their towns and communities.”
She also urged Conservative councillors seeking similar injunctions against asylum hotels to “keep going” despite the ruling.
Focal point of protests
Epping Forest District Council had asked for the injunction after the Bell Hotel became the focal point of several protests and counter-protests. It claimed its owner, Somani Hotels, had breached planning rules.
Lord Justice Stephen Eyre, who gave the original High Court decision, had said that while the council had not “definitively established” that the company had breached planning rules, “the strength of the claimant’s case is such that it weighs in favour” of granting the injunction.
Image: Anti-migration protesters in Epping in July
Regular protests have been held outside the Bell Hotel since an asylum seeker housed there was accused of sexually assaulting a 14-year-old girl in July.
Hadush Gerberslasie Kebatu, 38, denies two counts of sexual assault, one count of attempted sexual assault, one count of inciting a girl to engage in sexual activity, and one count of harassment without violence.
Image: A view of an England flag outside the Bell Hotel in Epping, Essex, after a temporary injunction that would have blocked asylum seekers from being housed at the Bell Hotel in Epping, Essex, was overturned at the Court of Appeal. Picture date: Friday A
After the Court of Appeal ruling, a small number of protesters gathered outside the Bell Hotel carrying England and Union flags, with police officers guarding the entrance to the hotel, which is gated off with metal fencing.
An England flag has been attached to a drainpipe outside the hotel, while England flags have also been painted onto signs and a speed camera outside the hotel.