Private school blames VAT rise for closure plan

A private school has blamed dwindling school numbers and the introduction of VAT on school fees for its decision to close.

Highfield Prep School, in Maidenhead, Berkshire, which has capacity for 160 pupils, announced it planned to shut at the end of the summer term.

Private school fees have been liable for 20% VAT since 1 January.

The government has said the money raised would be spent on more teachers for state schools in England.

The independent school in West Road, which dates back more than 100 years, informed parents of its intention to close in a letter earlier this month.

The school has been run by Chatsworth Schools since 2019, which owns 11 schools and nurseries in the UK.

The company said the closure was "not a proposal we are making lightly."

In a statement it cited a "steady decline in pupil numbers", the introduction of VAT on school fees and the upcoming increases in employer National Insurance contributions as the catalysts behind the decision.

It said: "Unfortunately, it is unlikely to be sustainable to keep the school open beyond summer 2025.

"Chatsworth Schools, will support Highfield families in seeking alternative schools for their children should the decision ultimately be taken to close the school.

"We have initiated a consultation process in respect of all staff and are putting a pastoral support package in place to help everyone affected by these proposals."

"Chatsworth Schools will also support those staff who may need to seek alternative roles," it added.

Value added tax (VAT) is one of the government's main sources of income. It is payable on top of the purchase price of many goods or services and the standard rate is 20%.

Before the budget in October, private schools did not have to charge VAT on their fees because of an exemption for organisations providing education.

Chancellor Rachel Reeves announced that private school fees would be liable for 20% VAT from 1 January.

The Labour government has said it plans to spend the money raised on more teachers for state schools in England.

The Department for Education and HM Treasury have been contacted for comment.

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