Over 50 UK Private Schools Close Since Labour VAT Introduction

Since the Labour government imposed a 20 percent VAT on private school fees starting January 2025, over 50 private schools across England, including top prep schools, sixth-form colleges, and specialist schools for children with additional needs, have closed or announced plans to do so. This tax policy, aimed at raising approximately £1.6 to £1.8 billion annually to support state education and fund new teachers, has led to a sharp decline in private school enrollment, with more than 11,000 pupils leaving the sector, a 1.9% drop from the previous year. Critics, including the Independent Schools Council, warn that the closures are straining the public education system as displaced pupils move to state schools, which are already under pressure. The government maintains that the drop in private school numbers is expected and insists the policy helps the 94% of children in state schools to thrive, though it has not provided detailed data on pupil migration. Industry leaders argue that the VAT on fees is a significant factor contributing to school closures and that further closures are likely as financial pressures mount. Despite a slight increase in the number of independent schools overall, the sector is experiencing sharper declines in pupil numbers than anticipated, raising concerns about the policy's long-term impact on education choice and quality.