Private school announces 'devastating' closure after 127 years blaming Labour's tax raid on fees
Moorlands School in Leeds, which charges up to £4,000 a term, said it will close at the end of the autumn term.
The prep school, which is part of the Methodist Independent Schools Trust, educates children aged two to 11.
Labour's 20 per cent VAT on fees, which was introduced in January, has led to pupils being priced out and schools struggling to fill places.
Today, education minister Jacqui Smith refused to apologise for the policy, although she admitted 'every closure is sad'.
In a statement, Moorlands said it had decided to close 'in the face of increasingly difficult economic conditions that are impacting many independent schools.'
The school said its 'unsustainable financial position' had been caused by 'VAT on school fees', alongside a number of other factors.
Moorlands School in Leeds (pictured), which charges up to £4,000 a term, said it will close at the end of the autumn term
These include the withdrawal of charitable relief on business rates, increases in employer National Insurance contributions, rising running costs and a decline in registrations.
Parent Jonathan Marsden, whose children attend Moorlands School, said the announcement was 'completely devastating'.
He told the BBC: 'We've got to make quick decisions suddenly. It's an absolute disaster for everybody involved.
'It is incredibly difficult to explain to a seven-year-old over breakfast that they need to change school in a matter of weeks.'
A number of other small private schools have announced closure over the last few months, blaming the tax.
These include Queen Margaret School for Girls in York, which will close next month.
Today, Baroness Smith was asked in the House of Lords to 'apologise' to pupils at schools facing closure 'because of the Government's cruel policy'.
She answered: 'No I won't.
'This was a decision made by this Government in order to be able to invest in the over 93 per cent of our children who are educated in state schools.
'Yes, every closure of a school is sad. I can understand why people would be distressed if their school closes.
'I do note, however, that it has always been the case that approximately 50 mainstream private schools close each year.'
She added that in the last year, 79 new private schools opened, against a historic ten year average of 75 schools per annum.
It comes after Keir Starmer admitted earlier this month on X that at least some money raised from the tax would be siphoned off to pay for housing.
The Department for Education said: 'Ending tax breaks for private schools will raise £1.8 billion a year by 2029/30 to help fund public services, including supporting the 94 per cent of children in state schools to achieve and thrive.'
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