“Like many independent schools, we have been unable to withstand mounting financial pressures following the introduction of VAT on school fees, increased national insurance and pension contributions.“
Queen Margaret’s School, a prominent independent boarding and day school for girls near York, has announced it will close its doors after 124 years of educating children.
The decision was confirmed by the school’s governors, who cited severe financial pressures as the primary reason for the closure. In a statement released this morning, the governing body said the institution “could no longer withstand financial pressures, including the recent introduction of VAT on school fees.”
Queen Margaret’s is the latest in a growing number of independent schools struggling to survive following the government’s implementation of a 20% Value Added Tax (VAT) on private school fees, a policy introduced by the Labour government earlier this year. The move, part of a broader initiative to increase funding for state education, has drawn criticism from parts of the education sector and affected families.
“At least three other private schools have announced closures this week,” said an industry source. “For many, the VAT imposition has proved a fatal blow, pushing already strained finances past the breaking point.”
Founded in 1901, Queen Margaret’s School had built a reputation for academic excellence, music and performing arts, and a strong pastoral tradition. Generations of girls have passed through its halls, many going on to prestigious universities and careers in the arts, sciences, and public service.
Parents and alumni have expressed anger and sadness over the news. One parent said, “It’s devastating. This isn’t just a school — it’s a community. And now it’s gone because of short-sighted policy decisions.”
The policy has been met with fierce political debate. Critics accuse the Labour government of enacting a measure rooted in “ideology, envy, and economic illiteracy,” arguing that it disproportionately impacts lower-income families who make sacrifices to afford private education.
Supporters of the VAT measure, however, maintain that it is a necessary step toward ensuring a fairer education system and reducing inequality.
With Queen Margaret’s School set to shut permanently at the end of the academic year, attention now turns to the future of its staff and pupils, many of whom must now seek alternative placements — in a sector already bracing for further instability.
The Department for Education has yet to comment directly on the closure.
READ THE FULL SCHOOL ANNOUNCEMENT FROM THE CHAIR OF THE BOARD OF GOVERNORS
It is with the deepest regret that The Board of Governors, on 13th June 2025, announce the closure of Queen Margaret’s School at the end of the summer term on 5th July 2025. Despite the tireless efforts of the School and the Board we, like many independent schools, have been unable to withstand mounting financial pressures following the introduction of VAT on school fees, increased national insurance and pension contributions, the removal of charitable-status business rates relief, and rising costs for the upkeep and operation of our estate.
Over the past 18 months, the Board has worked hard to respond to these challenges, proactively managing resources, introducing energetic new leadership, and expanding our marketing efforts. Supported by experienced advisors, we also undertook a strategic review of our funding options and pursued every possible avenue in a search for fresh investment. This included a possible merger or sale of the School that led to advanced discussions with several interested parties. Unfortunately, none of these routes resulted in a successful outcome for Queen Margaret’s. While we experienced strong student enquiry levels during the autumn, these declined sharply in early 2025 following the implementation of VAT. We have continued to monitor developments closely and kept our forecasts under constant review. Unfortunately, our enrolment for September 2025 is below the viable level required to keep the school open beyond the current academic year. This, taken together with our efforts to secure fresh investment proving unsuccessful, means we have been left with no alternative but to close the School. The School is unable to meet the costs of closure, and it is for this reason it has filed a Notice to Appoint an Administrator earlier today.
This is a heart-wrenching decision that no governing body wants to take, and we fully recognise that the closure of Queen Margaret’s will be deeply distressing for the whole QM community. Our priority is the wellbeing of our pupils, their families and all of our incredible teaching staff, and we are committed to ensuring as smooth a transition as possible for everyone. We will work closely with every family to achieve the best possible solution for every pupil and will provide ongoing support to all members of staff. Education and the day-to-day running of the School, including external exams, will continue as normal until the end of the summer term. Sports Day, Art Exhibition, Speech Day and the Leavers’ Ball will all go ahead as planned. While this will inevitably be an emotional time, particularly for our girls and staff, we also recognise the importance of marking the end of their time at QM in a positive and meaningful way that will support their transition to the next stage of their journeys. Alongside helping families plan the next steps in their daughters’ education, we are also creating a programme of activities to give the girls the chance to come together, celebrate their collective achievements, cherish their friendships, and create memories which will stay with them forever.
Queen Margaret’s is a truly special School, and we would like to thank everyone who has played a part in making it the place that it is; from every member of staff, past and present, to every parent and guardian who has entrusted us with the education of their daughter. But most of all, we thank the generations of amazing girls who have shaped QM into the vibrant community it is today. For 125 years, girls have been nurtured here, forming lifelong friendships and building the foundations from which they have flourished and thrived – both in school and beyond. Queen Margaret’s values and ethos will always live on through them. Terry Burt Chair of the Board of Governors
Main image: For illustration purposes only. Image created on AI.
