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Yahoo
18 hours ago
- Business
- Yahoo
Two private schools close in wake of Labour's VAT raid
Two prep schools have become the latest victims of Labour's VAT raid by announcing their closures as a result of the levy. Park Hill School in Kingston, Surrey, said the introduction of the 20pc tax on fees in January had led to a decline in pupil numbers meaning it was no longer financially viable to operate. Falcons School, a neighbouring school in Putney, south-west London, said a raft of tax changes including the VAT levy and increases to National Insurance alongside a higher minimum wage had 'intensified' a decline in pupil enrolment forcing it to close at the end of the academic year. It comes after figures this week revealed private school pupil numbers had fallen by more than 11,000 in England following the VAT raid on fees – four times more than government forecasts. There were around 582,500 pupils at English private schools in January compared to 593,500 at the same point last year, according to the Department for Education. Parents at Park Hill were told this week the 75-year-old school would be forced to close with children offered the opportunity to move to a nearby sister school. The decision came as a shock to many, with the school's website this week still advertising a recent open day for prospective pupils. The school had also written to parents in March to thank them for 'continued loyalty and support' in spite of the introduction of VAT and offered a 5pc discount to families who paid the following year's school fees early. However, on Wednesday, in a letter seen by The Telegraph, Amit Mehta, chief executive of Inspired Learning Group, which owns the school, said: 'Following careful reflection, we have made the strategic decision to relocate pupils from Park Hill to join our sister school, Westbury House, from January 2026. 'We are incredibly proud of everything Park Hill has achieved over the years. However, like many schools, it also faces challenges, and this evolution offers fresh opportunities for all our pupils.' Park Hill, which has 84 pupils aged between two and 11, will transition into a fully-fledged nursery which is exempt from VAT. Justin Spanswick, chief operating officer at Inspired Learning Group, said: 'The decision was made because of the downward trend in pupil numbers at Park Hill, due in part to the introduction of VAT on school fees.' He added the decision would also strengthen Westbury House 'in the current climate', with pupils moving to the school helping to shield it from the Government's tax rises. Falcons School decided to absorb the 20pc VAT levy in January and kept fees frozen at £6,270 per term in a bid to arrest a decline in pupil numbers. In March the school told the families of its 126 pupils that it was 'considering the future viability' of the school and that it was 'likely to close'. The school was taken over by Inspired Education Group in 2023 and made the decision to admit boys for the first time in an attempt to increase pupil numbers. A spokesman for the school said: 'As a result of the thorough consultation process, we have taken the difficult decision to close the school at the end of the academic year. 'The consultation took place as the school has been loss-making since we acquired it, with enrolment under 50pc over the last two years. THis has been intensified by the recent government changes such as VAT.' Ministers have admitted the Government expects 100 private schools to close as a result of its VAT raid. Analysis by the Independent Schools Council suggests this will lead to 40,000 pupils being displaced and 11,000 jobs being lost. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Yahoo
19 hours ago
- Business
- Yahoo
Two private schools close in wake of Labour's VAT raid
Two prep schools have become the latest victims of Labour's VAT raid by announcing their closures as a result of the levy. Park Hill School in Kingston, Surrey, said the introduction of the 20pc tax on fees in January had led to a decline in pupil numbers meaning it was no longer financially viable to operate. Falcons School, a neighbouring school in Putney, south-west London, said a raft of tax changes including the VAT levy and increases to National Insurance alongside a higher minimum wage had 'intensified' a decline in pupil enrolment forcing it to close at the end of the academic year. It comes after figures this week revealed private school pupil numbers had fallen by more than 11,000 in England following the VAT raid on fees – four times more than government forecasts. There were around 582,500 pupils at English private schools in January compared to 593,500 at the same point last year, according to the Department for Education. Parents at Park Hill were told this week the 75-year-old school would be forced to close with children offered the opportunity to move to a nearby sister school. The decision came as a shock to many, with the school's website this week still advertising a recent open day for prospective pupils. The school had also written to parents in March to thank them for 'continued loyalty and support' in spite of the introduction of VAT and offered a 5pc discount to families who paid the following year's school fees early. However, on Wednesday, in a letter seen by The Telegraph, Amit Mehta, chief executive of Inspired Learning Group, which owns the school, said: 'Following careful reflection, we have made the strategic decision to relocate pupils from Park Hill to join our sister school, Westbury House, from January 2026. 'We are incredibly proud of everything Park Hill has achieved over the years. However, like many schools, it also faces challenges, and this evolution offers fresh opportunities for all our pupils.' Park Hill, which has 84 pupils aged between two and 11, will transition into a fully-fledged nursery which is exempt from VAT. Justin Spanswick, chief operating officer at Inspired Learning Group, said: 'The decision was made because of the downward trend in pupil numbers at Park Hill, due in part to the introduction of VAT on school fees.' He added the decision would also strengthen Westbury House 'in the current climate', with pupils moving to the school helping to shield it from the Government's tax rises. Falcons School decided to absorb the 20pc VAT levy in January and kept fees frozen at £6,270 per term in a bid to arrest a decline in pupil numbers. In March the school told the families of its 126 pupils that it was 'considering the future viability' of the school and that it was 'likely to close'. The school was taken over by Inspired Education Group in 2023 and made the decision to admit boys for the first time in an attempt to increase pupil numbers. A spokesman for the school said: 'As a result of the thorough consultation process, we have taken the difficult decision to close the school at the end of the academic year. 'The consultation took place as the school has been loss-making since we acquired it, with enrolment under 50pc over the last two years. THis has been intensified by the recent government changes such as VAT.' Ministers have admitted the Government expects 100 private schools to close as a result of its VAT raid. Analysis by the Independent Schools Council suggests this will lead to 40,000 pupils being displaced and 11,000 jobs being lost.
