St George’s Preparatory School, located in Boston, Lincolnshire, has declared that it will close at the conclusion of the current academic year, due to increasing financial pressures. The recent measure to apply VAT to private school fees had a crucial role in driving this decision, leading to daily ‘unsustainable losses’. This policy change, made by the government with the intent to create £1.8 billion annually by 2029/30 for public services, including state education, has severely impacted the viability of the school.
Even as it enjoyed an ‘outstanding’ assessment from Ofsted, St George’s was dealing with financial difficulties brought about by increased National Insurance outlays and a rise in the National Minimum Wage, paired with a decrease in enrolment. Sarah Whelan, the school’s headteacher, expressed profound regret over the school’s closing, lauding the dedicated staff and supportive school community.
Strategies are being set in motion to aid parents in relocating their children to other schools and staff members are being provided with employment support. The government, defending its VAT policy in the High Court, reinforces that the tax is essential in boosting funding for public services, despite opponents arguing it infringes human rights and is biased.
