Christian private school blames Labour's VAT raid as it weighs up closure

Malvern St James School has announced that it will likely be closing its doors at the end of the current academic year, specifically citing Labour’s controversial imposition of VAT on private school fees as a key cause.

In a statement, the school, which has a Christian ethos and has existed for over a century, said that despite “sustained efforts” to give the school a viable future it had seen a “significant and continuing decline in pupil numbers”.

However, it added that Labour's controversial VAT fees on private education and increasing employment costs were a factor. 

“Nationally, the introduction of VAT on school fees and increased employment costs have placed considerable pressure on the independent sector," it said.

"Locally, the small class sizes and highly individualised education that are so valued by our parents and pupils mean that the school’s current model has become increasingly difficult to sustain.”

The school said that efforts would be made to ensure the education of its current students would be unaffected and said that a “planned and orderly closure” would be taking place “subject to consultation with staff”.

Former Sky News presenter Colin Brazier lamented the news and accused Labour of “ideological vandalism”.

Labour’s imposition of VAT on private school fees has been heavily criticised, with opponents noting that it disproportionately impacts smaller independent schools, many of them Christian, which attempt to provide quality education to those from working and lower-middle class backgrounds. Meanwhile the real engines of privilege like Eton, Rugby and Harrow are capable of weathering the financial storm.

According to some estimates, as many as 100 independent schools have had to close as a result of the policy.

A legal challenge against the VAT policy that was mounted by a group of Christian schools, parents and students was rejected earlier this year by the Court of Appeal, although a further appeal to the Supreme Court is currently being planned.

At the time of the Court of Appeal Ruling, Andrea Williams, CEO of the Christian Legal Centre, which is supporting the group, described the policy as a “deep injustice”.

"Not everyone can home‑educate, and low‑cost Christian schools are already being forced to close under the weight of these policies," she said. 

"Through this and other measures, the government is making it increasingly difficult for parents to shape their children’s education. It is centralising control over schooling, and in doing so, exerting control over our future.”

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