S. Anselm’s, a private school in the Derbyshire Dales, will close at the end of the summer term due to financial challenges, including government tax changes and declining enrolment. The school announced the decision to parents on 17 March, beginning a statutory consultation with staff.
According to Paul Houghton, chair of the board of governors, rising costs—such as the new 20% VAT on school fees, increased National Insurance contributions, and the removal of business rate relief—have made the school financially unsustainable. The school explored alternatives but found no viable solution.
S. Anselm’s, which was named Tatler’s ‘Prep School of the Year’ in 2021, had already withdrawn GCSEs in 2022 to focus on younger pupils and merged with Birkdale School in Sheffield in 2023. From September, pupils have been offered places at Birkdale or assistance in finding alternative schools.
Labour introduced VAT on private school fees in January 2025 and will remove charitable business rate relief in April 2025. The Treasury estimates these measures will generate £1.725 billion annually to support state education. The government expects minimal impact on overall private school enrolment, with an estimated 35,000 pupils transferring to state schools.
