Rachel Reeves's VAT raid forces doors shut of UK's top Jewish private school

Joe Sledge
Tue, 14 Apr 2026 15:56:26 +0000

Immanuel College has announced it will permanently close after more than three decades, with governors citing mounting financial pressures facing the independent education sector.

The Jewish independent school in Bushey, which charges annual fees of £29,700, informed parents on April 14 that it will shut at the end of the current academic year.

Daniel Levy, chair of governors, said: "This is an incredibly painful moment for our entire community."

He added: "The introduction of VAT on independent school fees has added further strain to an already challenged sector."

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Governors confirmed they had exhausted all possible options to secure the college’s future before taking the decision to close.

The institution opened in 1990 with ambitions to become a leading centre for Jewish education in the United Kingdom.

At its launch, the then Chief Rabbi, Immanuel, Lord Jakobovits, described it as the most ambitious enterprise ever undertaken in the history of Anglo-Jewry.

The school was named in his honour, reflecting his contribution to Jewish life in Britain after fleeing Nazi persecution and later becoming the first member of his faith to be knighted.

Financial pressures have intensified in recent years, with the college’s most recent accounts showing losses of £2million.

Pupil numbers have fallen significantly, with enrolment now standing at 360 students.

The school employs 158 staff across teaching, support and administrative roles, while also providing more than £200,000 in bursaries to families.

Labour’s decision to remove VAT exemptions on private school fees, alongside changes to business rates relief, has had a significant impact on finances.

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Chancellor Rachel Reeves confirmed the policy in her Autumn 2024 Budget, introducing a 20 per cent VAT charge on fees for independent schools.

Increased national insurance contributions and prolonged inflation have added further cost pressures.

Student intake has nearly halved in recent years, with applications continuing to decline.

Mr Levy said governors had "explored every avenue to secure the college's long-term future," including cost reductions and seeking support from philanthropists.

He added that it is unlikely sufficient funds can be raised to keep the school operational.

Independent schools previously benefited from exemption from VAT alongside mandatory 80 per cent business rates relief due to their charitable status.

Immanuel College is among more than 100 independent schools that have announced plans to close since January 2025.

Former deputy prime minister, Oliver Dowden, said: "Very sad to learn of closure of the brilliant Immanuel College at the end of the current academic year. This is a real blow to Bushey and the Jewish community."

Mr Dowden added that the closure would "add more pressure to local state schools and risks depriving Jewish students of access to a Jewish school."

Students preparing for GCSE and A-Level examinations next summer will be supported with arrangements to complete their studies.

The announcement follows the recent administration of St Lawrence College in Ramsgate, Kent, which faced similar pressures linked to VAT changes and rising operational costs.