More private schools have opened than closed since Labour’s VAT hike

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More private schools opened than closed last year despite Labour’s introduction of VAT on school fees.

Some 107 independent schools opened in England last year – the highest number recorded since 2007, The i Paper‘s analysis of Government records found.

Meanwhile, 71 closed – more than in 2024 but lower than in 2023, before Labour came to power.

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This year so far, 38 private schools have opened and 10 have closed, according to the Department for Education’s register of schools.

The total number of private schools in England has been growing since 2024, despite Labour’s general election win in July of that year.

Julie Robinson, chief executive of the Independent Schools Council, a trade body that represents private schools, has highlighted closures and warned of more to come, saying: “While there is a combination of factors contributing to school closures, we know that there are some for whom the Government’s decision to tax education is a bridge too far.”

Private schools with charitable status also lost their 80 per cent tax relief on business rates in April 2025.

One of the country’s oldest schools, Thetford Grammar School in Norfolk, announced last week that it will close at the end of this academic year, blaming the introduction of VAT on fees.

The private day and boarding school’s former pupils include Thomas Paine, an English-born American Founding Father.

Headteacher Amanda Faye told the BBC: “”The cumulative impact of the 20 per cent VAT tariff on school fees, the removal of business rates relief, increased employer pension contributions and the rising of the minimum wage and operating costs has placed an unsustainable pressure on the school.”

The Treasury said ending tax breaks for private schools will raise £1.8bn a year by 2029/30, making funding available to be reinvested in state schools.

However, despite concerns over the VAT hike, there has been a rise in the number of private schools fuelled by growing numbers of special schools.

There are currently 2,525 independent schools open across England, which includes 529 special schools, the register of schools shows.

91 independent special schools opened last year – the highest number recorded since at least 2000.

There is a shortage of special school places across England, with the number of pupils in special schools now hitting a record 194,000, up from 109,000 in 2014/15, according to the County Councils Network.

In 2023/24, 83 per cent of state-funded special schools were either full or over capacity.

The places available are often a long distance away from the pupil’s home, which is one of the reasons some parents are choosing to pay for private education instead.

The South East has had the biggest number of private school closures – 18 – since the levy was introduced on January 1, 2025.

This was followed by London (15), Yorkshire and the Humber (10) and the East Midlands (10).

Many private schools have passed on their added costs to parents by raising fees.

The ISC said private school fees were 22.6 per cent higher on average in January compared with a year ago.

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