The third private school in a week has closed after Labour’s introduction of VAT on fees at the start of the month.
Godolphin Prep, which opened in 1993 and charges £12,196 a year for girls aged between three and 11, told parents on Wednesday that it would close at the end of the school year.
The school, in Salisbury, Wiltshire, blamed declining pupil numbers, and in a letter to parents said: “In the current climate, ensuring each pupil is able to enjoy the full range of learning and socialising opportunities becomes much harder to deliver.”
The school is the third to announce closure in the fortnight following the implementation of Reeves’ VAT raid on January 1.
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Private schools now have to pay 20pc to the Treasury on tuition fees, and from April will have to pay business rates, which they were previously exempt from.
Pupils at the closing school will transfer to the nearby Chafyn Grove, and will automatically be offered places at the senior school at Godolphin.
In a letter sent from Chafyn Grove School on Wednesday, parents were warned that the position of preparatory schools was “particularly precarious” as a result of the introduction of VAT on school fees, the Salisbury Journal reported.
A letter to parents reportedly said: “The future for stand-alone prep schools is particularly precarious at present; not only due to the introduction of VAT on fees but also in terms of ensuring we remain at the cutting edge.”
Sarah McQuillen, chair of governors at Chafyn Grove, said: “We are future-proofing Chafyn Grove for the challenges of the years ahead whilst also giving certainty and surety to our existing families.”
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Julie Robinson, the chief executive of the Independent Schools Council (ISC), which represents 1,400 members, warned of further closures, leading to redundancies for staff and disrupted education for students.
She said: “Many people warned the Government that VAT would prove a bridge too far for schools already under financial pressure – we are now seeing the reality: school closures, dedicated staff losing their jobs and children having their education disrupted.
Ms Robinson added: “This is something that we will unfortunately see again over the coming months and years – with more communities losing an employer, a partner and an educational hub for local children. We urge the Government to think again and work with us to mitigate the effects of this damaging policy.”
Other schools have also announced closures due to the financial pressures of the tax raid.
Maidwell Hall, which was attended by Earl Spencer, announced its closure on January 7, and was followed by Amherst School in Loughborough later that week.
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Barbara Matthews, who chairs the trustees at the 114-year-old Maidwell Hall, said the tax raid had “forced the trustees to recognise that the economic consequence was unavoidable”.
When the closure was announced, the Good Schools Guide told The Telegraph: “If this can happen to Maidwell, it can certainly happen to other schools that share their profile – the smallish, country prep with boarding that is at the upper end of the fee spectrum.”
Other schools have warned that the number of bursaries on offer for poorer students will be cut as budgets are tightened as a direct impact of the tax raid.
Last week, concerns were raised by David Woodgate, chief executive of the Independent School Bursars Association (ISBA), that some schools might have to sell off land in order to cut their tax bills.
A Treasury spokesman said: “Ending tax breaks for private schools will raise £1.8bn a year to help the 94pc of children in state schools achieve and thrive. Pupil numbers at independent schools have remained steady since 2000, despite fees increasing by around 75pc in real terms since then.
“We conducted a thorough and careful analysis and published a detailed costing methodology and from this, we and the OBR concluded that on average, private school fees are expected to rise by 10pc as a result of VAT. We remain committed to that conclusion.”
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