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Daily Mail
25-06-2025
- Business
- Daily Mail
Private school announces 'devastating' closure after 127 years blaming Labour's tax raid on fees
A small private school has announced it will close after 127 years, blaming Labour's tax raid on fees and other rising costs. 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.'
BBC News
24-06-2025
- Business
- BBC News
Moorlands private prep school in Leeds to close after 127 years
A private school in West Yorkshire is to close at the end of the autumn term, blaming VAT on fees and rising budgets for its "unsustainable position".Moorlands School in Leeds will close on 31 December, 127 years after it opened in to a statement from the school, the decision to close was agreed by trustees on Wednesday "in the face of increasingly difficult economic conditions that are impacting many independent schools and show little sign of abating".The Department for Education said: "Ending tax breaks for private schools will raise £1.8bn a year by 2029/30 to help fund public services, including supporting the 94% of children in state schools to achieve and thrive. The school said its decision "followed a period of careful reflection and a thorough review of the school's financial viability".It added: "VAT on school fees, alongside a decline in enquiries and registrations, the withdrawal of charitable relief on business rates, increases in Employer National Insurance contributions, the limited ability of a small school to reduce fixed costs, and the rising budgets required for the upkeep of the school site and buildings, have sadly all contributed to an unsustainable financial position."The prep school, which is part of the Methodist Independent Schools Trust, educates children aged two to 11. 'End of an era' The statement added the decision was not a reflection of the school's staff or governing body, and teachers would continue to ensure education and activities continued said: "Moorlands has been a special place of learning, growth, and community. The history, character, and culture of the school have shaped generations of pupils."While this marks the end of an era, the values and memories created here will remain with all those who have been part of its story."A statement from nearby Richmond House School, which is also privately run, reassured parents it remained in a "strong and secure financial position".A spokesperson said: "We are deeply saddened to learn that Moorlands School will be closing in December 2025, and our thoughts are very much with the pupils, families and staff affected by this news."Richmond House School is in a strong and secure financial position, with robust reserves and healthy pupil numbers throughout the school."Anna Coulson, headteacher at the Froebelian School in Horsforth said she was "deeply saddened" to hear Moorlands School would be closing."Our thoughts are with the families, children and staff affected by this unexpected announcement, and we extend our heartfelt support to all those now facing a period of uncertainty and change," she said.A spokesperson from the Department for Education said about 50 mainstream private schools typically closed every year."Local authorities and schools commonly support children and parents in these circumstances," they said. "We are confident in local state schools' ability to accommodate new pupils." Listen to highlights from West Yorkshire on BBC Sounds, catch up with the latest episode of Look North.
