Top head warns communities face 'shock' from private school closures as Labour's VAT raid leaves them under 'profound' financial pressure

Private schools are under 'profound' financial pressure due to Labour's VAT on fees, a top head teacher has said.Anne Cotton, chairman of HMC, which represents more than 300 leading independent schools in the UK, said the resulting closures have caused 'shock' in communities.She said the last two years – after the tax was introduced in January 2025 – had been 'really tough' for many schools.It comes after the Independent Schools Council suggested that more than 100 private schools had closed since the introduction of VAT on fees.Dr Cotton, head of King's College School in Wimbledon, said it is an 'important and challenging time' for the sector.HMC, which originally stood for the 'Headmasters' and Headmistresses' Conference', represents the UK's most expensive and elite schools, including Eton and Harrow.Many of those schools are not at risk of financial collapse, but Dr Cotton said they could take part in 'positive advocacy' on behalf of the rest of the sector.Addressing the HMC annual conference in Manchester, she said: 'The last couple of years have been – they are – really tough, and I am conscious that for some schools, for some regions, the pressures are profound. Private schools are under 'profound' financial pressure due to Labour's VAT on fees, a top head teacher has said. Pictured: Anne Cotton, head of King's College School in Wimbledon'The closure of schools, the impact of those closures, on young people, on their families, on staff, on the wider communities they serve, on colleagues and friends, on you, has touched all of us.'I have joined divisional meetings where the shock and impact of the closure of a neighbouring school have been tangible.'Labour justified the 20 per cent tax by saying it would pay for improvements to the state education system, including 6,500 new teachers.However, it has hit the financial viability of smaller, cheaper schools, which had to add the tax onto their fees despite catering for a less wealthy demographic.Many families were priced out of their schools, and had to switch to the state sector instead, leading to a drop in numbers.The private sector insists it already helps the state sector through sharing resources, buildings and playing fields.Dr Cotton highlighted existing 'powerful partnership work' between independent schools and state schools, charities and local organisations.She said: 'Going forward, making that positive collective contribution visible will be an important focus for the HMC team. Dr Cotton, chairman of HMC, which represents more than 300 leading independent schools in the UK, said closures have caused 'shock' in communities. Pictured: protesters against the policy outside the High Court last year'That positive advocacy will be accompanied by a continued focus on navigating the challenges of the last couple of years.'Among the schools announcing closure over the summer were Avon House School in Essex and Sompting Abbotts Prep School in West Sussex.There was also Ruthin School, in Denbighshire, North Wales, which was once attended by John Lennon's son Julian.A census in January showed the number of children at private schools fell by 30,000 since the introduction of VAT on fees and by 20,000 in the previous 12 months.That number is getting close to the 37,000 reduction that the Government predicted would occur as a result of VAT.A Government spokesman said: 'We're very proud that ending tax breaks for private schools is delivering billions of pounds to improve education for the 94 per cent of children in state schools.'The overall fall in private school pupil numbers reflects demographic change across the whole school system, not the VAT policy alone. Primary school pupil numbers have been falling since 2018/19 - this trend long predates the VAT change.'