Private schools cite VAT switch in closure plan

An independent school in Leicestershire says it plans to close due to “financial challenges” including the imposition of VAT on school fees.

Loughborough Amherst School informed parents of 284 pupils on Monday that it was proposing to close permanently at the end of the academic year on July 4.

Loughborough Schools Foundation, which runs the co-educational Catholic school, said a final decision would be taken after a staff consultation, which is expected to conclude in March.

Roger Harrison, chairman of the foundation’s governors, wrote in a letter to parents: “Despite significant financial support and sustained efforts to increase pupil numbers, the school has been unable to maintain a surplus throughout its 10 years.”

“We now face a situation in which operating costs continue to rise, exacerbated by the recent autumn budget announcements.”

He said these included the introduction of VAT for private schools, a national minimum wage increase and expected changes to the business rates exemption.

Mr Harrison said: “Therefore, and regretfully, we have reached the point where it will no longer be financially viable to run the school before the end of this academic year.

“This is not an easy decision to make, and I cannot understand how incredibly difficult and emotional it will be for you and your family.”

Mr Harrison said that if the closure was confirmed, more than 80% of pupils would be offered a place at one of the other schools within the foundation.

“Our priority now is to minimize the impact on the education and well-being of all our pupils, and we will work closely with each family to find the best solution for each pupil,” he said.

“Additionally, we will provide ongoing support to all members of staff whose jobs may be affected by the proposed closure and help them transition through this particularly difficult period.”

The government said the money raised from its reforms is expected to help fund 6,500 new teachers in England’s public schools.