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Despite introduction of VAT, more private schools have opened than closed

Despite introduction of VAT, more private schools have opened than closed

More private schools opened than closed in England in 2025 despite policy changes by the Labour Party, including the introduction of VAT on fees. Government data shows 107 independent schools opened while 71 closed, with overall numbers continuing to rise. Growth has been driven largely by demand for special education, as increasing numbers of pupils require specialist provision and many state schools are at or beyond capacity. Some long-established schools have had to close, citing financial pressures from higher taxes, rising wages and operating costs. On average, fees have increased by over 20% as schools pass on these costs to parents. The government argues the tax changes will raise funds for state education, while sector leaders warn of further closures. There are currently 2,525 independent schools in England, including 529 special schools.