The Chancellor’s “vindictive and ideological schools’ tax” has forced a private school to close for the last time in its 75-year history.
Rachel Reeves introduction to the 20% tax on school fees which has helped to cause fewer number of pupils and the increase in employer’s national insurance following the 2024 Autumn Budget has made it impossible for the school to operate, Bishop Challoner School said in a letter.
The school will close their gates for the last time on 4 July after the students have finished their exams.
The school will help parents find placements for 270 students and over 40 teachers will lose their jobs.
GB News reported, the Shadow Education Minister, Neil O’Brien MP, said, “This is very sad news and will mean disruption for even more children.
“The numbers being forced to move school are already turning out to be far larger than the Government expected, which makes the tax counterproductive because it increases the amount the Government needs to spend.
“They promised that the extra tax would pay for more teachers in state schools, but we now know that the number of teachers in the state sector is down under Labour.
O’Brien added, “The really big worry is that large numbers of children with special needs who are being managed in independent schools will have to move and that will load pressure onto the heavily loaded special needs system in the state sector.”
Local Conservative councillor, Adam Grant, said, “The decision to close the school is a devastating consequence of the Labour Government’s vindictive and ideological schools’ tax, driving the cost of an independent education out of the reach of normal hard-working people.
“This closure impacts far more than just bricks and mortar. Dedicated staff are now facing unemployment — individuals with homes, families, and livelihoods at stake.
“Students, many of whom have known no other school, are being uprooted from their educational environment at a crucial time in their development.
“They and their families now face the distressing challenge of securing alternative placements in a system already under significant strain.”
Grant added, “The emotional and practical toll this is taking on the Bishop Challoner community is profound.
“These are not just numbers or policy consequences — they are people, dreams, and futures.
“The imposition of VAT on independent school fees may be politically expedient, but the real cost is being borne by aspirational parents and their children who will now be forcibly removed from their friendship groups and face an uncertain future.”
A Government spokesman said, “Ending tax breaks for private schools will raise £1.8billion a year by 2029/30 to help fund public services, including supporting the 94 per cent of children in state schools to achieve and thrive.
“On average, around 50 mainstream private schools typically close each year.
“This is due to a range of reasons, including financial struggles and school standards issues.
“Local authorities and schools commonly support children and parents in these circumstances. We are confident in local state schools’ ability to accommodate new pupils.”