Labour VAT Raid Forces Closure of Multiple UK Private Schools, Displacing Thousands

Several independent schools in the UK are closing due to financial pressures linked to the Labour Government's introduction of a 20% VAT on private school fees, alongside increased national insurance and loss of business rates relief. Bishop Challoner School in London, after 75 years of operation, will close this summer, citing a significant drop in pupil numbers and rising costs as unsustainable. Queen Margaret's School for Girls in York, a 124-year-old institution, also announced closure due to declining enrolments following the VAT implementation and other financial challenges, despite efforts including new leadership and marketing. These closures contribute to a broader trend, with over two dozen independent schools shutting down since January 2025, displacing thousands of pupils and leading to considerable job losses among teaching staff. Critics, including local councillors and opposition politicians, have condemned the tax as vindictive and counterproductive, warning it places additional strain on state schools, particularly those supporting children with special needs. The Government expects around 100 private schools to close as a result of the tax, a situation that has sparked legal challenges that were recently dismissed by the High Court.