Private school cites VAT switch in closure plan

An independent school in Leicestershire says it plans to close due to "financial challenges", including the introduction of VAT on school fees.

Loughborough Amherst School informed parents of 284 pupils on Monday it is proposing to permanently close at the end of the academic year on 4 July.

Loughborough Schools Foundation, which runs the co-educational Catholic school, said a final decision would be made following a staff consultation, which is expected to end in March.

"Despite significant financial support and sustained efforts to grow pupil numbers, the school has been unable to sustain a surplus throughout its 10 years," wrote Roger Harrison, the foundation's chair of governers, in a letter to parents.

"We face a situation now in which operating costs continue to rise, further exacerbated by the recent Autumn Budget announcements."

He said these included the introduction of VAT for private schools, the national minimum wage rise and expected changes to business rate exemptions.

Mr Harrison said: "We have, therefore, and with regret, reached the point where it will be no longer financially viable to continue to run the school beyond the end of this academic year.

"This has not been an easy decision to make, and I do not underestimate how incredibly difficult and emotional this will be for you and your family."

Mr Harrison said if the closure was confirmed, over 80% of the pupils would be offered a place at one of the other schools within the foundation.

"Our priority now is to minimise the impact on the education and wellbeing of all our pupils, and we will work closely with every family to achieve the best solution for every pupil," he said.

"Additionally, we shall be providing ongoing support to all members of staff whose jobs may be affected by the proposed closure and will help them transition through this particularly difficult period."

The government said money raised from its reforms is expected to help fund 6,500 new teachers in state schools in England.