Private school to close due to VAT change

A private school has announced it will close at the end of the school year due to the "financial burdens" imposed by the government.

St George's Preparatory School in Boston, Lincolnshire, said it was incurring "unsustainable losses" on a daily basis.

It comes after a government decision to impose VAT on private school fees came into effect in January.

The government had said the move would raise £1.8bn a year by 2029/30 to invest in public services, "including the state education system".

The school, which is rated "outstanding" by Ofsted, said its finances had also been hit by an increase in employers' National Insurance contributions, along with a rise in the National Minimum Wage.

There had been a notable fall in pupil numbers, with fewer families wanting to enrol their children, it said.

Founder and principal Sarah Whelan said: "This is a very sad moment for everyone connected to St George's.

"Our dedicated staff, wonderful pupils and supportive families have made this a truly special community.

"We are heartbroken that financial realities beyond our control have forced this outcome," she added.

Help will be given to parents in transferring their children to new schools, while staff will be offered employment support, according to the Local Democracy Reporting Service (LDRS).

Earlier this month, the government defended the policy in the High Court.

It argued that the main objective of the VAT policy was to raise additional tax revenue to invest in public services.

Opponents claim the policy is incompatible with human rights law and is discriminatory.

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