School To Close Due To Financial Challenges

An independent school near Market Harborough is to close due to financial challenges, including the introduction of VAT on fees.

Maidwell Hall boarding and day school in Maidwell, which has 160 pupils aged 4 to 13 and has been operating for over 100 years and, is set to shut at the end of the summer term.

The school says the decision has been taken with ‘profound regret’ and added it had ‘for many years been operating at a financial loss and although there has been some growth in pupil numbers, the school has been adversely affected by external factors that have made it impossible for the school to continue.’

It also states that in 2022, Maidwell Hall faced ‘almost certain insolvency’ and was only rescued by a merger with another school, which repaid a six-figure bank loan.

The school added the decision by government to add VAT to school fees, stop business rates relief and increase National Insurance contributions from April, meant it needed at least 250 fee-paying pupils to break even and is well short of that number.

Harborough district councillor Phil King has previously warned about the impact of the changes on the independent school sector locally.

He gave HFM his reaction to the closure announcement:

A consultation about the closure has been launched with staff at the school.

Barbara Matthews, Chair of Trustees at Maidwell Hall, said: “We are deeply sorry to announce our intention to close Maidwell Hall at the end of the summer term 2025.

“We know how difficult this will be for parents, pupils and our loyal staff and apologise to the very many people who will be affected and for whom Maidwell Hall holds a special place in their lives.

“We feel especially for the pupils. The school is blessed with wonderfully gifted and well-rounded young people and the delight they take in school has made this decision doubly difficult.”

Harborough MP Neil O’Brien said: “My first thoughts are with the parents and pupils, many of whom live locally, who will be very worried.

“All of this seems so unnecessary. The Government did not have to do this, and despite repeated warnings that independent schools would close, they introduced VAT on school fees. Not only that, but schools have also had to contend with the elimination of business rates relief and the increase in employer National Insurance contributions. It’s a perfect storm, inflicted on them by the Government. Unsurprisingly, schools such as Maidwell have been forced to close.

“This policy will result in many more children entering state education when there are already immense pressures on local school places. It’s a disastrous policy, creating uncertainty and unnecessary disruption for families and teachers here and across the country.”

A government spokesperson said: “We want to ensure all children have the best chance in life to succeed.

“Ending tax breaks on private schools will help to raise the revenue needed to fund our education priorities for next year, such as recruiting 6,500 new teachers.”

Maidwell Hall was in the spotlight last year after Northamptonshire Police launched an investigation into historic abuse allegations, after Earl Spencer – Princess Diana’s brother – wrote about his experiences as a pupil at the school in the 1970s, between the ages of 8 and 13.

Officers have confirmed they had recently spoken to another former pupil in connection with alleged abuse, and that a woman, aged 67, arrested and released in June, remained on conditional bail while inquiries continued.

In a statement at the time, Maidwell Hall said it was ‘sobering to read about the experiences Charles Spencer, and some of his fellow alumni, had at the school, and we are sorry that was their experience’.

The school also encouraged anyone with similar experiences to contact the police.