A private school in south-east London is the latest to close due to a “significant decline” in pupil numbers caused by the Government’s VAT raid on fees.
Bishop Challoner School in Bromley will shut its doors at the end of the academic year because it is no longer economically viable.
The Catholic school, which charges £19,686 annually and celebrated its 75th anniversary this year, has experienced a sharp drop in pupil numbers, driven by the introduction of VAT on school fees, falling birth rates and rising living costs.
Mounting operating costs — including the loss of business rates relief and higher employer National Insurance contributions — have added further pressure.
“Together, these factors have placed significant strain on the school’s financial sustainability,” the board of governors said in a statement.
David Canevaro’s daughter Veronica attends Bishop Challoner and is currently in Year 10 working towards her GCSEs.
He told The Standard that following the announcement on Thursday: “There were teachers crying, parents screaming, children giving speeches — its been a big drama.
“When I went in yesterday, one teacher came out and gave me a hug and was crying. She said ‘I have been here for 33 years’. There are teachers saying now I won’t be able to pay my mortgage over the summer months or find a new job until September.”
Mr Canevaro said those in Years 10 to 13 will be hardest hit by the closure, as they face upcoming GCSE and A-Level exams and the challenge of now finding new schools that offer the same subjects with matching exam boards.
When asked about the impact on his daughter, Mr Canevaro said: “My daughter has special education needs (SEN) and her biggest issue is social interaction and friendships.
“It’s going to be a massive, traumatic adjustment. She had all her friends at Bishop Challoner, it took her a long time to settle down and now she’s lost everything.”
He added: “I am literally begging the head and deputy head to help us. We are going to go for an interview at another independent school on Tuesday, but speaking to the admissions office, it seems like they are going to say no.”
Mr Canevaro stressed the importance of Veronica receiving the support she needs at an independent school, saying state schools often lack the resources and specialist expertise to meet SEN requirements.
However, he admitted places are scarce, pointing out that one school has just five places for 30 applicants.
“The schools are going to pick and choose and they are not going to pick a child with SEN when they can pick five without,” he said.
The father praised the school, its staff and leadership, but criticised the Board of Governors for “messing with our children’s lives”.
“They didn’t give us, as parents, the option to pay an extra 15 to 20 per cent to keep the school open when we are now going to have to pay that anyway by going somewhere else,” he said.
Mr Canevaro questioned why the Board of Governors failed to inform families sooner about the planned closure, saying: “We’ve been kept in the dark until the last minute.”
“How is the local authority and the mainstream schools, which are oversubscribed already, going to cope with an extra 250 kids? We have all been left in a terrible situation. It’s unbelievable really.”
The school had 317 pupils last summer, but numbers fell to 270 by January following the introduction of VAT on school fees. A further 52 have since withdrawn ahead of the next academic year — a 31 per cent drop in just over a year.
It comes after the High Court on Friday dismissed a legal challenge brought by nearly 20 families and independent schools opposing the Labour’s decision to impose a 20 per cent VAT on private school fees.
The claimants argued that the policy discriminates against SEN pupils who do not have an Education, Health & Care Plan (EHCP), as well as students at faith-based and single-sex schools.
While judges acknowledged that the VAT could disproportionately impact SEN children, they ruled that granting an exemption would unfairly divert funds from state schools, which rely on this revenue— estimated at £1.6 billion annually to support the hiring of 6,500 new teachers.
The court concluded that the policy does not breach human rights law or the European Convention on Human Rights (ECHR) and affirmed that the government has a broad margin of discretion in this matter.
Bishop Challoner said it had explored a merger with nearby schools and appealed to benefactors for support, but those efforts were unsuccessful.
It has therefore taken the difficult decision to close on July 4 and said it would work with parents to minimise disruption to students.
The full statement from Bishop Challoner School read: “It is with great sadness that the Board of Trustees today confirm that it has made the difficult decision that the operations of Bishop Challoner School will cease after the current academic year ends on July 4, 2025.
“This has been an incredibly difficult decision, which the school made every effort to avoid.
“Despite the dedicated efforts of the school’s leadership and staff, Bishop Challoner School has been impacted by the broader increasingly challenging environment for schools.
“With falling birth rates, rising living costs and more recently the impact of VAT on school fees the school has seen a significant decline in pupil numbers.
“Meanwhile, its operating costs have risen significantly over recent years and further impacted by the recent removal of rates relief and the statutory increase in employer’s National Insurance.
“Together, these factors have placed significant strain on the school’s financial sustainability.
“The very difficult decision to close comes after an extensive search for new investment and sources of revenue, together with potential merger partners.
“This, unfortunately, did not produce a viable outcome and, having sought advice from both legal and insolvency practitioners, the conclusion is therefore there is no viable alternative but to close.
“The decision has therefore been made to close the school at the end of the current academic year, 4 July, rather than in the Autumn term, so parents have time to find alternative schools before the start of the next academic year.
“Ongoing teaching at the school will continue until the end of term in an attempt to minimise disruption to students.
“The school will close after the exam period, so none of the Bishop Challoner School pupils’ exams will be impacted. Closing in the summer also gives our dedicated and hardworking staff more time to seek employment elsewhere.
“FRP Advisory has been engaged to support a managed wind-down of the school and a liquidator will be appointed following the end of term to oversee the closure.”
Patricia Colling, Chair of Trustees, said: "This is a very difficult time for our parents, pupils and staff. We are saddened that, despite our best efforts, the school has to close.
“The Board of Trustees is immensely proud of Bishop Challoner School's successes over many years and we are especially grateful to our staff who have always put the interests of our pupils first. They are a loyal and dedicated staff.
“The Trustees and the senior leadership team at the school are working closely with parents to help identify places in schools so our pupils continue to receive the high-quality education they deserve.
“We have written to the parents of our school, outlining the support available and a meeting will be held for parents to discuss the situation further. We will also provide support for our staff, to help them find roles elsewhere.
“We are acutely aware of the impact this decision has on our young students. Bishop Challoner is a school that has built its reputation on outstanding pastoral care and this makes the decision all the harder.”
