School rescued from closure thanks to £180k fundraiser

A private school in Penrith, Cumbria, has announced it will remain open after successfully raising 180,000 in donations. Hunter Hall Preparatory and Pre-School had warned that over 50 families might lose access to the school due to newly imposed VAT on school fees.

Headteacher Paul Borrows explained that additional financial pressures, including the removal of charitable business rates relief and increased employer national insurance costs, had put the school at risk of closing by Christmas.

The government stated that removing tax exemptions for private schools is expected to generate 40 million annually, more than previously predicted, with the funds intended to support public services and benefit the 94% of children attending state schools.

Hunter Hall Preparatory, the county's only independent prep school, serves around 80 students aged three to 11, with annual tuition fees between 13,000 and 15,000. Mr Borrows described reaching the fundraising goal as a "huge relief" and expressed gratitude for the widespread community support, including donations from individuals with no personal connection to the school.

The school noted that the emergency funds will provide "breathing space" to continue working on a long-term strategy for financial stability.

Previously, private schools were exempt from charging VAT on tuition fees. This exemption was removed on 1 January. Additionally, about half of England's private schools operate as charities and had received an 80% reduction in business rates, a benefit that ended in April.

A government spokesperson confirmed that ending these tax breaks is expected to raise 40 million per year and highlighted efforts to recruit more teachers and reduce staff turnover in state schools.

Author: Zoe Harrison