Highclare School, a long-standing independent school in Birmingham, is set to close its Woodfield preparatory site in Wylde Green, Sutton Coldfield, with the introduction of VAT on school fees and other increasing costs being cited as primary reasons. The school, founded nearly a century ago in 1932 at the Woodfield site on Birmingham Road, will merge its preparatory provision with its St Paul's site on Lichfield Road over the next 18 months, with the Woodfield campus expected to remain open until August 2026.
VAT on Fees Blamed for Financial Pressures
The Labour Government introduced VAT on private school fees after coming to power in July 2024, making the additional 20% charge compulsory from January 1, 2025. According to Sutton Coldfield city councillor Alex Yip (Conservative), headteacher Francis Smith informed him that the closure decision resulted from a combination of the VAT imposition, increases in National Insurance, and changes to charitable status. These factors have created financial pressures impacting pupil numbers and budgets.
A spokesman for Highclare acknowledged the impact, stating: "Highclare is absolutely aware that our families, and families across the country, have found the introduction of VAT on school fees incredibly difficult. This is shown in the widely published data relating to the drop in pupil numbers at Independent Schools. Highclare has likewise been impacted by this." The spokesman added that consolidating the two preparatory schools allows the school to focus investment on one location, creating "one centre of educational excellence for children between the ages of two and 11."
Drop in Pupil Numbers and National Impact
Analysis published in January 2026 reported that at least 65 independent schools fully closed in 2025, according to School Management Plus. Department for Education (DfE) statistics show that independent school pupil numbers in England fell by around 11,000 students—approximately 2%. Councillor Yip warned that this creates significant extra pressure on state schools and reduces school spaces.
Louise Flowith, chair of governors, described the merger as an "ambitious programme of investment" in the seven-figure range, stating: "By focusing our investment on one preparatory campus, we can enhance educational provision, improve facilities for our younger learners and ensure the continued success of the whole school community for generations to come."
Concerns Over Job Losses and Parental Choice
Cllr Yip expressed concerns about the broader consequences, saying: "Not only are pupils' education being disrupted and pushed into the state sector, school closures also lead to the loss of jobs—usually local jobs—as well as a reduction in opportunity and parental choice." He referenced the closure of Ruckleigh School in Solihull, a school established in 1909 with over 240 pupil places, which also cited VAT-related financial pressures as a key reason for its closure.
Cllr Yip has written to the Secretary of State for Education, Bridget Phillipson, urging a U-turn on VAT charges. He said: "I therefore urge the Government to undertake an immediate review of the impact of VAT on independent school fees, publish a full assessment of school closures and pupil transfers since implementation, and commit to reversing this policy before further educational capacity is lost."
Impact on State Schools and Taxpayers
The councillor argued that these closures put extra pressure on the state system, creating additional costs for taxpayers. He stated: "The evidence emerging during the first full year of implementation that this policy is detrimental to pupils, families, schools and taxpayers and directly leading to the closure of independent schools, such as Highclare in my ward, is becoming overwhelming and can no longer be ignored."
The Department for Education has been asked to comment on the claims but has not yet responded.
