The leader of the Liberal Democrats has told us he was "astonished" after the Labour government's plans to impose VAT on private schools forced one in Oxfordshire to close. 

Sir Ed Davey made the comment on a visit to Wantage last Friday when he was joined by local MP Olly Glover to launch a campaign to scrap the government’s bus fare hike.

Sir Ed also spoke about the wider implications of the recent budget, when chancellor Rachel Reeves confirmed plans to impose a 20 per cent VAT on private schools from January. 

Carrdus School, an independent school just outside Banbury, announced this month that it would close in April 2025 due to financial pressures on the school and parents caused by the Budget, unless the school finds a buyer.

READ MORE: Oxfordshire's Jeremy Clarkson joins London farmers' protest

Sir Ed Davey (Image: Contributed) Sir Ed said: “The Liberal Democrats are very worried about this idea from the Labour government and we will be voting against it. It's so poorly thought through. 

“If schools close, that means more money is required to educate those children and young people in the state schools.

"It also means that some of the some of the private school that could close are specialist schools looking after children with special educational needs and disabilities. 

“I'm quite astonished that the government seems to want to penalise those schools, so it's the wrong decision.”

The Government has predicted that 35,000 pupils will move into UK state schools over time, and a further 2,000 will leave private schools to be educated in schools abroad or at home.

Donna Stevens, chief executive of the Girls’ Schools Association (GSA), called Labour’s policy a “step backwards for equality” as she said girls’ schools improve pupils’ life chances and “break glass ceilings”.

A lack of places in all girls’ state schools could mean parents who cannot afford higher private school fees as a result of the policy are forced to choose a co-educational school instead, leaders have suggested.

Mrs Stevens warned the change may lead to the girls’ school sector shrinking and choice being “eroded”.

Speaking to the press at the GSA’s conference in Manchester, Mrs Stevens said there is a lack of girls’ schools in some areas of the country, and even in areas where there are state girls’ schools they can be “packed” and difficult to get a place at.

A HM Treasury spokesperson said: “The Government has made difficult decisions on tax now to fix the foundations and increase investment in public services and the economy, to rebuild Britain and unlock long-term growth.

“We want to ensure all children have the best chance in life to succeed. Ending tax breaks on private schools will help to raise the revenue needed to break down the barriers of opportunity for children and young people across the country.”

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About the author  

Toby is a senior reporter who has a particular interest in covering planning and local government. 

He joined in September 2024 having been a reporter at the Hampshire Chronicle for three years. 

Toby studied at the University of Brighton and can be found on X through the handle @JournoToby