Fulneck School: Why private school in Leeds is closing - and impact of government VAT changes explained
The shock announcement that a private school in Leeds is to close after more than 270 years has left parents heartbroken - and it follows new VAT rules being brought in by the government.
Families in the city were told yesterday (March 24) that Fulneck School in Pudsey will shut this summer, leaving many scrambling to find places at other schools.
It marks the end of an era for the historic independent day and boarding school that was established back in 1753, having seen the likes of Prime Minister Herbert Henry Asquith and suffragist Elizabeth Wolstenholme Elmy through its doors.
Prior to the election, the Chancellor Rachel Reeves announced plans to levy VAT on private school fees. And, as the new charges came into place last year, it is possible that the additional charges could have contributed to dwindling numbers.
A spokesperson for the school said that despite “dedicated efforts [...] to sustain pupil numbers, a continued decline in enrolment, combined with rising operational costs, has made it increasingly challenging to maintain financial viability”.
What do the new charges mean?
In last year’s budget, Labour doubled down on its pledge to apply the 20 per cent VAT rate to private schools from January, which the government estimated would raise £460 million over the year, and £1.7 billion by 2030. The Chancellor said the funds would be used to benefit state education.
The government simultaneously predicted that private school fees would rise by around 10 per cent, insisting that institutions did not have to reflect the VAT increase in the amount parents are charged.
The Institute for Fiscal Studies forecast that higher fees would result in between three and seven per cent of pupils moving from the private to the state sector.
What have other schools in Leeds said?
The headteacher of one of Leeds’ top private schools confirmed in an interview with the YEP last year that annual fees would rise from £10,000 to £12,000.
Anna Coulson, of The Froebelian School in Horsforth, unveiled radical measures in order to reassure parents, covering the VAT for the first two terms at a cost of around £80,000.
With the Institute for Fiscal Studies' prediction, the forecasts could equate to losing up to eight pupils each year at The Froebelian, which has 120 pupils aged between two and 11.
The Froebelian School has been working with members of the House of Lords to highlight the challenges faced by small independents, as Mrs Coulson remains in contact with The Independent Schools Council (ISC), which represents more than 1,400 private institutions in the UK and abroad.
What has Fulneck School said?
In a statement posted online, a spokesperson for the school said: “Despite the dedicated efforts of the school and the Fulneck Trustees to sustain pupil numbers, a continued decline in enrolment, combined with rising operational costs, has made it increasingly challenging to maintain financial viability.
“Following a comprehensive strategic review and the exploration of all possible alternatives, the Trustees have made the difficult decision to plan for the school’s closure. We understand that this announcement will be distressing for our pupils, parents, staff, and the wider school community.”
It added that the trustees, board of governors and the school are “committed to ensuring that the school year finishes as planned”, with all teaching continuing until the end of the school year and pupils completing public and internal examinations as intended.