A Leicestershire school is proposing to shut its doors for good. Amherst School, part of the Loughborough Schools Foundation, has blamed the move on “financial challenges” which have been “compounded by” announcements made by the Government in its Autumn Budget.
These include the introduction of VAT for private schools, of which Amherst is one, the national minimum wage rise, and expected changes to business rate exemptions. Roger Harrison, Loughborough Schools Foundation’s Chair of Governors wrote to parents yesterday (Monday, January 6) to alert them to the possible closure, saying the proposal has been put forward “with regret”.
The school, in Gray Street, Loughborough, currently has 284 pupils aged four to 18 on its register. One parent, who did not wish to be named, told LeicestershireLive the news had come “out of the blue”. She added: “Where is everyone to go?”
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Staff will be consulted on the plans over the coming months. If the foundation decides to go ahead with the closure, the school would be expected to remain open for the rest of this academic year.
In the letter to parents, Mr Harrison said: “Despite significant financial support and sustained efforts to grow pupil numbers, the school has been unable to sustain a surplus throughout its 10 years with the Loughborough Schools Foundation. We face a situation now in which operating costs continue to rise, further exacerbated by the recent Autumn Budget announcements.
“The introduction of VAT on school fees and the removal of a sizeable exemption from business rates were confirmed, along with an increase in National Minimum Wage at a level above inflation and changes to employers’ national insurance. We have, therefore, and with regret, reached the point where it will be no longer financially viable to continue to run the school beyond the end of this academic year.
“We have reached this conclusion only after exploring alternative options and undertaking detailed financial modelling. This has not been an easy decision to make, and I do not underestimate how incredibly difficult and emotional this will be for you and your family.
“However, the economic reality makes this a necessity to secure a stable and sustainable future for pupils across our family of Foundation schools, particularly given the significant change of external circumstances in which we are now operating.”
The majority of Amherst pupils would be offered a place at one of the other schools within the Loughborough Schools Foundation, Mr Harrison said. These are Fairfield Prep School which takes boys and girls three to 11 years, Loughborough Grammar School for boys 10 to 18 years and Loughborough High School for girls 11 to 18 years, he added.
Mr Harrison continued: “Our priority now is to minimise the impact on the education and wellbeing of all our pupils, and we will work closely with every family to achieve the best solution for every pupil. Additionally, we shall be providing ongoing support to all members of staff whose jobs may be affected by the proposed closure and will help them transition through this particularly difficult period.”
From Tuesday, April 1, private schools that are charities are expected to no longer be eligible to receive business rates charitable relief, while changes to VAT came into effect on Wednesday, January 1. The Ministry of Housing, Community and Local Government previously acknowledged the changes “could impact on the viability of certain private schools and, in some cases, contribute towards school closures”.
However, the department said it was taking these steps in order to “raise revenue to support” public finances and to “help deliver the Government’s commitments relating to education and young people”. Some 94 per cent of pupils attend state schools, it added.
The Ministry of Housing, Community and Local Government said: “In making these changes the Government aims to ensure that high quality education is available for every child and that the system is fair, with all users of private schools paying their fair share, while ensuring that the impact on pupils with the most acute needs is minimised.”
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