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How Labour’s spiteful VAT raid and a mysterious takeover by a City speculator led to overnight closure of a 135-year-old private school: GUY ADAMS investigates
Leweston School in Dorset closed without warning shortly before the end of half-term, saying it had run out of cash. The shutdown disrupted the education of hundreds of pupils, left staff facing unpaid wages and housing uncertainty, and raised concerns about the pressures on independent schools.
Founded in 1891, Leweston had 577 pupils and 214 staff, and charged annual fees of up to £45,000. The article reports that 149 independent schools have closed since the start of 2025, citing a campaign group that attributes the trend to VAT on fees, the end of business rates relief and higher employer National Insurance costs; it also says 33,000 children have left the sector. The article’s account is incomplete, ending before further details about Leweston’s finances or the circumstances of its takeover.
In short
- Leweston School closed suddenly after running out of cash.
- The closure left 577 pupils and 214 staff in limbo.
- The article links wider school closures to rising costs.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Critics of the policy changes can argue that VAT on fees, the end of business rates relief and higher employer National Insurance costs have added pressure to schools already facing high operating costs. If those costs are passed on, families may be priced out; if schools absorb them, financially fragile institutions may struggle, disrupting pupils’ education and staff livelihoods. The abrupt closure of a long-established school illustrates the potential harm to families and communities when a school runs out of cash.
The case against
Supporters of the changes can argue that independent schools should contribute VAT and business taxes like other organisations, and that tax relief for fee-paying education diverts public resources from broader priorities. A school’s closure alone does not establish that the policy changes caused its financial failure, particularly since the article’s account of Leweston’s finances and takeover is incomplete. They may also argue that tax changes should be assessed across the education system, rather than judged from one school’s experience.