School 'saved from closure' after £180k fundraiser

Pamela TickellNorth East and Cumbria
News imageHunter Hall School Almost a dozen boys and girls run across a grassed area in front of Hunter Hall School. They are wearing maroon blazers. The school building is an ornate two-storey structure painted white and has a grey roof.Hunter Hall School
Almost 80 pupils currently attend the fee-paying Hunter Hall near Penrith

A private school says it has been saved from closure after it reached its target to raise £180,000 in donations.

Hunter Hall Preparatory and Pre-School, in Penrith, Cumbria, said more than 50 families faced losing their school because of the introduction of VAT on school fees.

Headteacher Paul Borrows also said the loss of charitable business rates relief and an increase in employer national insurance contributions meant the school was facing closure by Christmas.

The government said ending tax breaks for private schools would raise £40m a year more than initially expected "to help fund public services, including supporting the 94% of children in state schools to achieve and thrive".

The county's only standalone prep school currently has about 80 pupils aged three to 11, with annual fees ranging from about £13,000 to £15,000.

Mr Borrows told BBC Radio Cumbria reaching the fundraising target was a "huge relief".

He said the school was "incredibly humbled" by support from its community and from people across the country who had no connection with the school whatsoever.

Relief scrapped

The school said the emergency funding had given them "breathing space to continue implementing its long-term plan for financial stability".

Previously, private schools did not have to charge VAT on their fees because of an exemption for organisations providing education.

This dispensation was removed on 1 January.

Furthermore, about half of England's private schools are charities, which means they had also received an 80% reduction on business rates, until the relief was scrapped in April.

A government spokesperson said: "The OBR's Budget report shows that ending tax breaks for private schools will raise £40m a year more than initially expected.

"Through our Plan for Change, we have already made good progress to deliver on our pledge to recruit 6,500 teachers."

They said there were 2,300 more secondary and "special school teachers" in classrooms this year, as well as 1,300 fewer teachers leaving the profession.

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