Independent School Faces Closure Threat Due to VAT Plan

A mother whose child attends an independent school facing potential closure has indicated she might need to leave her employment. Carrdus school, situated near Banbury, Oxfordshire, which serves children aged 3-11, informed parents last week that financial pressures placed it at risk of closing in the spring. This situation arises following the announcement that Value Added Tax (VAT) will be applied to private school fees. HM Treasury stated that the decision “will help to raise the revenue needed to break down the barriers of opportunity”. Claire, whose daughter is a student at Carrdus, reported receiving the news “out of the blue” last Thursday evening. She explained, “If I don’t have a school place for my daughter in the state system… it is possible I might have to leave my job because I cannot be in a situation where I work long hours full time and my daughter doesn’t have a place at school.” In October, Chancellor Rachel Reeves confirmed that the VAT exemption for private schools will cease from 2025. Consequently, Julie Lodrick, headmistress of Tudor Hall School, which owns Carrdus school, stated that Carrdus’s future is currently under review. She also cited the government’s decision to “remove charitable business rates relief [for independent schools] and increase employers’ national insurance contributions”. She noted that these factors had “put both huge pressure on the school’s finances and on our families”, leading a number of parents to give notice of their intention to withdraw their child from the school. She further added, “…the governors have concluded, with profound regret, that if a purchaser of the school is not found, Carrdus School is likely to close at the end of the spring term 2025.” Danielle, whose daughter also attends the school and who was a student there herself, commented, “to hear the news that it was closing in April… to not even have the end of the school year, just rubs salt in the wound”. She added, “To say we are shocked is an understatement.” Conservative Eddie Reeves observed that, nationally, the state system has seen “over 3,000 children apply for school places this term, with a further 2,500 expected in January” from private schools. He asserted, “We are therefore well on our way to skyrocketing costs to the public purse.” He advised parents needing a state school place to make an emergency application to Oxfordshire County Council, West Northamptonshire Council, and Warwickshire County Council. An HM Treasury spokesperson conveyed their aim to “ensure all children have the best chance in life to succeed”. They added, “Ending tax breaks on private schools will help to raise the revenue needed to break down the barriers of opportunity for children and young people across the country”.