Oxford schools have said they find it “sad and wrong” that the government have decided to charge independent schools VAT for the first time.

The Labour government confirmed that independent schools would no longer be entitled to VAT exemptions or business rate relief during the 2024 Budget.

Chancellor Rachel Reeves confirmed plans to impose a 20 per cent VAT on private schools from January in her Budget. 

Carrdus School, an independent school in Banbury, announced last week that it would close in April 2025 due to financial pressures on the school and parents caused by the Budget, unless the school finds a buyer.

We contacted multiple schools in the Oxford area to hear their response to the closure of Carrdus.

READ MORE: Bishop of Oxford stays silent as Justin Welby resigns

The warden (headmaster) of St Edward’s, Alastair Chirnside, said they “deeply regret” the government’s decision, and that it will also have a negative impact on their ability to support children from local state schools.

“In addition to the financial pressure which the Labour Party’s policy will put on parents who have chosen to educate their children at no cost to the state, the imposition of VAT on school fees will unavoidably have an impact on the extent to which independent schools across the country are able to provide opportunities for children from local state schools, an area which the government is keen to develop, particularly in sport, music and drama. 

“At St Edward’s, we remain committed to sharing our facilities and supporting our community as much as we can, but we find it both sad and wrong that the new measures will make it harder for independent schools to maintain all the partnership work which benefits so many children and young people in and around Oxford.”  

Pepe Di’Iasio, general secretary of the Association of School and College Leaders (ASCL), said: “We are concerned about the way in which the government is introducing VAT on independent school fees, particularly during the middle of an academic year which does not allow sufficient time for managing a change of this scale.

“We have recommended that the government delays until September 2025 and undertakes a full consultation exercise over this policy in the meantime.”

A spokesman for Oxfordshire County Council said the authority has noticed a small increase in parents applying to transfer their children from private school to state school.

The government made the decision to remove tax breaks for private schools in order to fund 6,500 new state school teaching posts.

John Howson, the county council's cabinet member for children, education and young people's services, has been contacted for comment.