English school dating back all the way to 631 AD to close for good due to devastating tax

Patrick O'Donnell
Tue, 28 Apr 2026 10:36:16 +0000

A 1,400-year-old school has been forced to shut down as a result of Chancellor Rachel Reeves's VAT raid on parents, according to the institution's governors.

Thetford Grammar School joins the list of more than 100 independent establishments that have shut down since the Labour Government's imposition of 20 per cent VAT on private school fees.

The Norfolk establishment, which currently educates around 200 students, is also one of England's oldest schools, tracing its origins back to 631 AD.

Parents of pupils were informed of the closure in a letter from Thetford Grammar School's chairman Jay Liu earlier this week, who placed partial blame on the Chancellor's tax policy.

In a letter to parents, Mr Liu invited families to visit the school's grounds to discuss the board's decision and outlined how Thetford found itself in this predicament.

He said: "Since January 2025 the imposition of VAT on school fees, alongside the removal of business rates relief, increased employer pension contributions, rises in the minimum wage and continued increases in utility and operating costs have collectively placed unsustainable pressure on many independent schools.

"This has been an extremely difficult decision. Throughout this process, the overriding priority has been the continued education wellbeing and future opportunities of our pupils."

According to Mr Liu, the school is planning to merge its resources with Finborough School in nearby Stowmarket, which currently accommodates 675 pupils.

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Recent polling from wealth management firm Saltus has suggested that around one in 10 students have been pulled out of private schools in response to the VAT hike.

A survey of high-net-worth parents found that nine per cent of respondents have taken their child out of the system, with six per cent and three per cent of this group being placed into state education or home schooled,

Furthermore, 25 per cent of those polled told Saltus that they have taken their children out of a private school, with eight per cent of this group moving their offspring to less expensive establishments.

Notably, six per cent of this sub-group have opted to send their children to private schools abroad to sidestep Ms Reeves's tax agenda.

Mike Stimpson, a partner at Saltus, noted that families placing children in the private education system "remains a major aspiration, but the additional cost has forced a reassessment of what is affordable, what is sustainable, and what truly represents value over the long term".

"Many value private education highly and are prepared to make sacrifices to make it work, even in the face of rising fees and the additional impact of VAT."

Defending the policy, the Department for Education stated: "Ending tax breaks for private schools will raise £1.8billion a year by 2029/30 to help fund public services, including supporting the 94 per cent of children in state schools, to help ensure excellence everywhere for every child."