Two more private schools forced to close blame Labour’s VAT raid – leaving ‘heartbroken’ parents struggling to find places elsewhere
Two private schools, Avon House School in Essex and Sompting Abbots Prep School in West Sussex, have announced they will not reopen in September, with both citing Labour's VAT policy on school fees as a key factor behind their closure. The schools' leaders also blamed rising National Insurance and pension costs, alongside a broader economic squeeze, and warned that parents in the affected areas are now struggling to secure alternative places for their children.
Avon House had operated for more than a century, while Sompting Abbots had been educating pupils since 1921 and had been run by the Sinclair family since 1946. The closures come amid figures showing 30,000 fewer pupils are enrolled in private schools nationally since Labour took office, including 20,000 in the past year alone, exceeding the government's original estimate of a 37,000 long-term reduction. Independent Schools Council census data shows enrolment down by up to 6.6% in some year groups, with the steepest declines among new starters in Scotland, Wales and the North East, and larger falls at primary and sixth-form entry points than at other stages.
- Two historic private schools are closing, blaming Labour's VAT on fees
- 30,000 fewer private school pupils enrolled since Labour took power
- Parents left struggling to find alternative school places
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Private schools, also known as independent schools, charge fees and are not run by local authorities. Some are large institutions, while others are small schools that rely on a relatively limited number of families paying fees each year.
Labour’s policy applies VAT, a tax charged on many goods and services, to private-school fees. Supporters say the money raised could help fund state education, while critics argue that higher fees could make private schooling unaffordable for some families and put pressure on schools with tight finances.
If a private school closes, parents must find places for their children elsewhere, which may mean applying to another independent school or seeking a state-school place. The issue is part of a wider argument about how education should be funded and who is affected when tax rules change.
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The strongest fair case each way — we don't pick a winner.
The case for
Supporters of applying VAT to private-school fees argue that fee-paying education should not receive a tax advantage unavailable to most families, particularly when public services are under strain. They contend that the resulting revenue can help strengthen state education, benefiting far more children, and that schools charging substantial fees should plan for tax changes as other businesses do. In this view, a fairer distribution of educational resources outweighs preserving a tax relief that mainly assists those able to pay private fees.
The case against
Opponents argue that adding VAT can make independent education unaffordable for families who make significant sacrifices to choose it, rather than only for the very wealthy. They warn that smaller schools with limited reserves may be pushed into closure, disrupting pupils and parents and potentially moving children into already stretched state schools. In this view, policy should avoid sudden financial pressure that reduces parental choice, harms local school communities and may yield less revenue than expected if enrolment falls.