State schools expect higher demand on back of VAT hit

Fee increases for private sector come into force in new year

- JABED AHMED

Contingency plans are underway in Whitehall for a surge in demand for state school places amid concerns that private schools will shut due to fee increases, according to reports.

Officials are said to be bracing for the possibility that some private schools will close when the policy to impose VAT on school fees comes into effect in the new year.

Government sources have told The Times that smaller schools that charge less and are located in more competitive locations are most vulnerable. However, a government spokesperson also told the newspaper that the idea that officials were preparing for a collapse of the private schools sector was “completely misleading”.