A historic independent school has suddenly shut down, blaming economic pressures caused by Labour’s introduction of VAT on private school fees.
Our Lady’s Abingdon in Oxfordshire announced its closure with immediate effect on Monday – leaving hundreds of pupils without school places for September.
Governors said Chancellor Rachel Reeves’s 20 per cent levy, as well as increases in employer National Insurance contributions were the final nails in the coffin for the 160-year-old institution.
The Catholic school for boys and girls aged seven to 18 had suffered a sharp drop in pupil numbers in recent months – with families priced out by the rising fees.
Our Lady’s Abingdon said it had been exploring a number of options to keep the school open but that talks ‘broke down’ last week, leaving no ‘viable path forward’.
Frantic parents now have less than a month to find schools for their children for next academic year.
A statement on the Our Lady’s Abingdon website read: ‘Extensive talks took place with other schools and organisations, with the hope of securing a merger or acquisition.
‘Until very recently, there was genuine optimism that a solution could be found. Sadly, those talks broke down last week, leaving no viable path forward.’
It went on to say: ‘A range of economic pressures has led to this outcome, mainly the introduction of VAT on school fees, higher National Insurance contributions, the ending of business rates relief for independent schools, and rising operational costs.
‘Despite every effort to limit fee increases, affordability has become a growing concern for an increasing number of families.
‘This has led to a sharp decline in pupil numbers in recent months, threatening the school’s short and long-term viability.’
Around 360 pupils attended Our Lady’s Abingdon when it closed on Monday, despite it having capacity for 540.
Typical fees had reached up to £23,040 per year.
Yasmine Currie, a parent who sent her 14-year-old son to the school, told the Oxford Mail: ‘Parents have been told at the same time this has gone out on social media.
‘It’s a small school and my son loved it there – he had a lovely group of friends – now I have to tell him when he gets back from camp he has no school to go to.’
Another added: ‘It’s going to be very difficult now to contact the local education authority during the summer break.’
They said they felt like families had been left ‘high and dry’ and questioned why the school couldn’t stay open for another term.
The closure of Our Lady’s Abingdon comes after the prestigious Mount St Mary’s College in Spinkhill, Derbyshire, also shut with immediate effect in July.
The Jesuit day and boarding school, which charged up to £21,420 a year for pupils in Years 9 to 13, had served the community for nearly 200 years.
Chair of governors, Shaun Whyman, said they had taken the decision with ‘profound sadness and a heavy heart’ after exhausting all possible alternatives to save the school.
Mount St Mary’s, whose headmaster is Jack Murphy, said the impact of VAT on fees and the removal of business rates relief had hit it hard.
It said: ‘It is with profound sadness and a heavy heart that I write to inform you of the immediate closure of Mount St Mary’s College and Barlborough Hall School with effect from today, 30th July 2025.
‘This decision has not been made lightly, and we understand the shock and distress this news will undoubtedly bring to our entire school community.
’Mount St Mary’s College and Barlborough Hall have been cornerstones of our community for nearly 200 years, providing a nurturing and faith-filled environment for generations of children.
‘Since 2004, when the schools became an independent charitable trust governed by a dedicated board of trustees, we have sought to uphold the values of Jesuit education and provide an environment in which young people can grow, reflect, and flourish.
’From 2015 onwards, the schools have faced increasing financial pressures, in line with the wider challenges affecting the independent education sector in the UK, including the addition of VAT on school fees and the removal of business rates relief for independent schools.
‘Despite the extraordinary efforts of staff, parents, and supporters, the schools have been unable to reach a sustainable financial position.’
It went on to say: ‘Since early 2025, governors and senior leadership have worked tirelessly to prevent the closure of the schools, seeking an alternative future to ensure continuity for pupils and staff.
‘They engaged in complex negotiations to explore different financial models and to find a new owner who would respect the schools’ ethos and build on their achievements.
‘Initially, several educational organisations expressed interest, and one potential partner remained in detailed negotiations until the last few days.
‘However, despite these efforts, no viable option emerged. As of the end of July, the level of debt and lack of a realistic path to financial viability mean we have no alternative but to proceed into Administration.
‘We know this will be met with sadness, disappointment, and even anger by those who love these schools.
‘We share that sorrow and are committed to being as open and supportive as possible in the weeks ahead. The Administrators have assured us that all options available for the future will be considered.
‘Our priority now, as we process this news, is the wellbeing of our pupils, their families, and our staff.
‘There will be immediate challenges as the schools enter formal insolvency procedures, during which the appointed professionals will manage the next steps. Regrettably, all ongoing activities, including the Holiday Club, will end with immediate effect.’
