Labour’s tax raid on private education claims another victim: Parents’ fury as independent boarding school is closing on 175th anniversary because of VAT charge on fees_Nhy
Labour’s tax raid on private education has claimed another victim as a boarding school announced plans to close on its 175th anniversary.
Loughborough Amherst School, a Catholic boarding school for boys and girls aged 4 to 18, said the ‘economic reality’ meant it was no longer viable.
The school gave the introduction of VAT on school fees as one of the reasons for the decision, alongside increases to the National Living Wage and employers’ national insurance.
The news has devastated locals, with one father revealing that he had been planning to send his son to Amherst before hearing that it was set to shut at the end of the academic year.
Pupils will be offered places at one of three other schools run by the Loughborough Schools Foundation, but staff may lose their jobs. A consultation is running until the end of the Spring Term.
It is only the latest in a series of independent schools to blame their decision to close on Labour’s policies, most notably a 20 per cent VAT charge on fees from January 1.
Amherst – which began in 1850 and charges £19,5000 a year for senior day pupils and £50,100 for full boarders – was previously known as Our Lady’s Convent School before being renamed after its takeover by the Loughborough Schools Foundation.
A letter to parents seen by MailOnline said the 2015 takeover had secured the school’s ‘immediate future’ in the face of ‘existing financial difficulties’ before rising costs and taxes became too much to manage.
Loughborough Amherst School, a Catholic boarding school for boys and girls aged 4 to 18 that began in 1850, said the ‘economic reality’ made it no longer viable
‘Unfortunately, despite significant financial support from the Foundation and sustained efforts to grow pupil numbers, the School has been unable to sustain a surplus throughout this period,’ the letter states.
‘These challenges have been further compounded by the recent Autumn Budget announcements including the introduction of VAT on school fees and the removal of a sizeable exemption from business rates, along with an increase in National Minimum Wage at a level above inflation and changes to employers’ national insurance.’
Amherst was recently praised by the Good Schools Guide for providing a ‘caring, vibrant and inspiring community where pupils’ enthusiasms and creativity shine through in every aspect of school life’.
The latest report by the Independent Schools Inspectorate rated the academic achievements of pupils as ‘good’ and the quality of their personal development as ‘excellent’.
Miles Latham, a local business owner in Loughborough, had been planning to send his son to Amherst before hearing news of its closure.
Taking to social media, he criticised local Labour MP Dr Jeevun Sandher, who insisted to him a year ago that ending the ‘tax break’ on private school fees ‘will not lead to a material reduction in students’.
Dr Sandher wrote in his previous LinkedIn post: ‘I am an Economist whose [sic] spent my adult life in policy analysis. I don’t take numbers on faith alone. I understand your deep concern about the impact that ending private school tax breaks will have.
‘I know there have been some scare stories about this, so let me clear [sic] – ending the private school fee tax break will not materially affect the number of pupils at private schools in Loughborough.
The news was announced in a letter to parents (pictured)
‘There are two reasons we know that ending the tax break on private school fees will not lead to a material reduction in students – 1) Because we did not see a massive reduction in last year’s cost-of-living crisis, and 2) independent analysis from the IFS has shown that very few private school pupils will leave the sector.’
In his own LinkedIn post last night, Mr Latham reminded the MP of his previous comments.
‘This is on your patch and on your watch – and you had the temerity to look me in the eye and say that schools deserved it, parents could afford it, and there would be no issues,’ he said.
‘Literally hundreds of distraught children, parents, and staff with uncertain futures because of your inept economics and political spite. You and your party should be ashamed of yourselves.’
Dr Sandher said today: ‘It is clear from Amherst School’s accounts that the business has long standing financial difficulties, having been in deficit for more than 10 years.
‘In those same 10 years, the Conservative government failed to invest in our state school system, which provides education for over 93% our children.
‘This Labour government wants to drive high and rising standards in all our state schools so that we can break down barriers to opportunity across our country.
‘That is why Labour will levy VAT on private schools and end their business rates exemptions, spending that money improving standards and opportunities for every child – not just those whose families can afford it.
‘I stated that private school numbers would not materially fall in the Foundation schools. Pupils at Amherst are being offered places at other Foundation schools. I stand by my comment.’
The school gave the introduction of VAT on school fees as one of the reasons for the move, alongside increases to the National Living Wage and employers’ national insurance. Pictured is Chancellor Rachel Reeves
Critics of the VAT charge, which will hit parents £2,000 each per pupil on average, have branded it a ‘tax on aspiration’ and warned it will simply force more parents to send their children to the already overburdened state sector.
Official data suggests an exodus is already underway, with 124 local councils in England, Scotland and Wales receiving 3,011 applications from private school pupils to move to a state school between June 1 and September 9.
The figures, obtained in Freedom of Information requests by the Telegraph, are likely to understate the scale of private school exits given a further 83 councils either did not respond or said they did not have the data.
Last month, Immanuel College Prep School, a private Jewish school in Hertfordshire, became the latest school to reveal plans to close in light of ‘unprecedented financial pressures‘.
Pupils at the £13,632-a-year primary school going into Years One to Five next September will be offered an alternative place at north-west London’s Kerem School in Hampstead Garden Suburb, a 30-minute drive away.
Immanuel College Prep School and Kerem School said in a statement: ‘The introduction of VAT on fees, in addition to the increase in National Insurance and teachers’ pension scheme costs and the removal of business rates relief, has had a significant impact across the independent schools sector.
‘The two schools, who enjoy a long-standing relationship and share similar values and ethos, have entered into this arrangement in order to safeguard the education of children in the Jewish community.’
MailOnline has contacted the Department for Education for comment.
