Peak District private school to close after 137 years as tax hit adds to losses

S. Anselm’s near Bakewell made the announcement to parents on Monday, March 17, as it begins a statutory consultation period with staff.

Paul Houghton, chair of the board of governors, said: “This has been an incredibly difficult decision which no one wanted to make. Despite our best efforts to secure a viable future for S. Anselm’s, we have been unable to overcome the growing financial pressures we face.

“Declining pupil numbers over many years, added to the increasing external financial pressures we are facing, including the addition of VAT on school fees, rising National Insurance contributions, and the removal of business rate relief for independent schools, has made it simply impossible to sustain the school.”

He added: “We have explored every possible alternative, but sadly, there is no other viable way forward and our priority now is working with the children and their families, our teachers and staff, and the wider community who are impacted by this decision.

“Our commitment is to give every possible support to every individual affected in the days, weeks and months ahead.”

Despite being named Tatler’s ‘prep school of the year’ in 2021, there have been signs of upheaval behind the scenes for some time.

GCSE provision was withdrawn in 2022 to concentrate resources on pupils up to the age of 13, and the following year S. Anselm’s merged with Birkdale School in Sheffield.

Remaining pupils are now being offered a guaranteed place at Birkdale for September, or support to move to alternative institutions.

In a letter to parents, Mr Houghton wrote: “We know this news will come as a great shock to you, your family and our entire community.

“It is a decision that has been incredibly difficult and not made lightly, but we have simply been left with no alternative.”

He added: “We are deeply upset to have reached the point where there are no viable options for S. Anselm’s as an independent prep school.

“We remain grateful for your trust and commitment to the school over the years, and we are here to help guide you through the weeks, months and years ahead.”

Labour committed to ending tax breaks for private schools in its 2024 General Election manifesto and the new policy came into effect from January 1, 2025.

The standard 20 per cent VAT rate has been added to private school fees – which cost between £4,004 and £14,687 per term at S.Anselm’s.

Those private schools operating as charities, like Birkdale, will lose charitable business rates relief – which provides an 80 per cent discount on the rates they pay on their premises from April 2025.

The changes are expected to raise £1.725billion a year, according to the Treasury, to go towards the public finances and help improve education and outcomes for young people.

The Government had predicted that the changes would have limited impact in terms of pushing more pupils into the state sector, given that “Over the last few years, the number of pupils enrolled at independent schools has remained largely the same, even when fees have increased by more than inflation.

“We expect that around 35,000 pupils – less than 0.5 per cent of the pupil population – across the UK will change schools to a state school from private schools.”

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