Private school cites VAT change for closure

The school said governors had explored "every possible avenue to avoid closure" in the recent months

A private school has cited the introduction of VAT on fees as its main reason for closing after 160 years.

The governing board for Our Lady's Abingdon (OLA) in Oxfordshire said the decision had been taken "only after exhausting every possible option to secure the school's future".

It cited "a range of economic pressures" and said governors had explored "every possible avenue to avoid closure" in recent months.

The government said adding VAT to fees would raise £1.8bn a year by 2029/30 to invest in public services, "including supporting the 94% of children in state schools to achieve and thrive".

At the time of the announcement, the school had 368 pupils, despite a capacity of 540.

"Extensive talks took place with other schools and organisations, with the hope of securing a merger or acquisition," the statement said.

It added that even though there had been "genuine optimism" for a solution, "those talks broke down last week, leaving no viable path forward".

The board listed "mainly the introduction of VAT on school fees, higher National Insurance contributions, the ending of business rates relief for independent schools, and rising operational costs" as the factors behind the closure.

It added that despite limiting fee increases, "affordability has become a growing concern for an increasing number of families".

"This has led to a sharp decline in pupil numbers in recent months, threatening the school's short and long-term viability," it continued.

The school said it would focus on supporting families in securing alternative school places in Oxfordshire, assisting staff through the redundancy process and helping them find new employment.

A government spokesperson said: "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."

Lib Dem MP for Oxford West and Abingdon Layla Moran expressed "absolute shock and sadness" at the announcement.

"We are engaging with OLA and the county council to establish what support is being offered for students to ensure everything possible is being done to help a smooth transition to new schools as soon as possible," she added.