Private school in Oxfordshire forced to shut doors due to new tax rules
A well-known prep school announces its closure following tax policy changes that affect private education. Parents withdraw children as school fees are set to rise by thousands of pounds
Carrdus School‚ a co-ed prep institution in Banbury has made a heart-breaking announcement about its up-coming closure. The schools board pointed to Labourʼs mid-year tax modifications as the main reason for shutting down
The tax changes (which include VAT on school fees and higher National Insurance costs) have pushed many parents to take their kids out. Current yearly fees at the school range from £2‚811 to £14‚985 — with the new 20% tax increase some families would need to pay up to £3000 more per-year
This isnt the first such case in recent months; since may 2024 nine other private schools have already shut down. Rachel Reeves‚ the Chancellor made these tax changes which will start from jan-1 2025. The Independent Schools Council data shows that private schools lost more than 10000 students this fall — thats a 1.7% drop from last year
The introduction of VAT mid-academic year‚ compounded by the loss of charitable rates relief and NI contributions increase has put a great deal of pressure on parents and schools
Laura Trott‚ shadow education secretary criticized the move:
- Its making more pressure for state system
- Moving kids mid-year disrupts education
- Labourʼs making political points at kids expense
The government defended its position saying difficult decisions on tax were needed to fix foundations and increase investment in public services
