School in fundraising drive to stave off closure

Almost 80 pupils currently attend the fee-paying Hunter Hall near Penrith

A private school in Cumbria has launched an appeal to raise £180,000 amid fears it could be forced to close within weeks.

Hunter Hall Preparatory and Pre-School, in Penrith, currently has about 80 pupils aged three to 11, with annual fees ranging from about £13,000 to £15,000.

Headteacher Paul Borrows described the introduction of VAT on school fees as "huge", alongside the loss of charitable business rates relief and an increase in employer national insurance contributions.

The government has been approached for comment, but previously said charging VAT on fees would help pay for more teachers in England's state schools.

A deadline of 3 December has been set to raise the money.

More than £40,000 has so far been pledged on a crowdfunding website within hours of the appeal being made public on Wednesday.

Mr Borrows told the BBC: "When VAT was introduced on fees, that had to be added to the amount families pay and for some that was a bit much to be able to afford.

"We've also had some big year groups leaving who joined during Covid, which has affected pupil numbers, but our costs have gone up and VAT is definitely a contributory factor to the situation we find ourselves in.

"It's all conspired against us. We don't have huge surpluses. We try to keep the fees as low as possible and if there is any money left over our priority is the children's education."

'Traumatic change'

The school, which employs 20 staff, is due to mark its 40th anniversary next year.

Its governors had been exploring a number of options, Mr Borrows explained, without success.

"We've set a deadline of next Wednesday to reach the target because we recognise time is short if people are going to have to look elsewhere for education and jobs.

"The worst-case scenario is closing at Christmas, which would be potentially see a traumatic period of change for the children. It's hugely unsettling for everyone.

"In terms of VAT receipts, the government was probably looking at about £100,000 per year.

"But if the school closes and 80-90% of pupils transfer to the state sector, then the government has to fund each of those places to the tune of about £7,000 per year.

"That's then a cost to the government getting on for half a million pounds."

Headteacher Paul Borrows described the situation as "unsettling"

Previously, private schools did not have to charge VAT on their fees because of an exemption for organisations providing education.

This dispensation was removed on 1 January.

About half of England's private schools are charities, which means they also received an 80% reduction on business rates.

This relief was scrapped in April.

The government estimated the policy would raise an extra £460m in the 2024-25 financial year, rising to £1.7bn by 2029-30.

Chancellor Rachel Reeves has said "every single penny" would go to state schools, including funding the recruitment of 6,500 teachers across England.

The government also said there would be funding to address other issues in schools, such as crumbling buildings and delays in the system for children with special educational needs and disabilities.