Private School Shuts Down Following Labour VAT Announcement

Following the Labour VAT announcement, Kilgraston School, a nearly 100-year-old private institution in Perthshire, Scotland, has announced its closure caused by significant financial challenges and the withdrawal of a prospective buyer as the decisive factors.

As Scotland’s only Catholic boarding school, Kilgraston has been a cornerstone of the local educational community since its founding in 1930. However, the school will cease operations as of 13 August, leaving many students, parents, and staff members scrambling to make alternative arrangements. The school administration has assured that discussions are ongoing to assist those affected by the closure.

Financial Setbacks from Labour VAT Announcement

One of the primary reasons for Kilgraston School’s closure is the impending charges on private school fees, as informed in the Labour VAT announcement which are scheduled to come into effect on 1 January 2025. This new tax burden has placed additional financial strain on the school, which had already set its fees for the 2024/25 academic year. Senior boarding students were set to pay £13,878 per term, with deposits of up to £3,500 due upon acceptance. The added pressure of the upcoming VAT charges, combined with the collapse of a planned sale of the school, left the administration unable to devise a financially viable solution to keep the institution open.

In a letter to the school community, the administration acknowledged that the "possible impact of VAT on school fees" was a contributing factor to the closure. The failure to secure a committed buyer further worsened the situation, leaving the school with no choice but to close its doors.

Previous Efforts to Save Kilgraston School

This closure comes just a year after the Kilgraston community rallied to save the school from a similar fate. In 2023, parents, students, and local businesses banded together to raise £2 million, successfully keeping the school operational. At the time, headteacher Tanya Davie assured the community that it was "business as usual," and the school continued to function with renewed hope for the future. However, despite these efforts, the financial challenges proved to be difficult to overcome in the long term.

Education provider Achieve Education had stepped in to provide short-term financial support and manage the school with the intention of purchasing it outright. Unfortunately, recent changes within Achieve Education led them to reassess their commitment, ultimately deciding not to proceed with the legal purchase of Kilgraston. Without this financial backing, the Board of Trustees was unable to find another solution to keep the school afloat.

A spokesperson for the Board of Trustees expressed deep regret, stating that despite their best efforts, no "financially viable solution" could be found to secure the school’s future. The closure of Kilgraston marks the end of an era for the Perthshire community, leaving a void in the local educational landscape.