A top school near York is to close after 124 years, it announced today (Friday).
Queen Margaret’s School, the independent boarding and day school for girls in Escrick, will shut at the end of the summer term.
The governors said the school could no longer withstand financial pressures, including the recent introduction of VAT on school fees.
The news broke only hours after a group of private schools, pupils and their parents lost High Court challenges over the imposition of VAT on school fees.
At least three other private schools announced they would close this week, with the VAT imposition being cited as a fatal blow.
A letter was sent to parents by chair of the Queen Margaret’s School governors Terry Burt today.
In it, he writes: “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.”
The school’s last full set of accounts, filed in August 2023, show it faced challenging financial times.
At that stage, it had a deficit of £1.28 million.
These 2023 accounts stated: “The Board recognises that while the plan that the School has been following has arrested the fall in the number of students attending the school with the trend now upwards in direction, that has not yet translated into the operating surpluses needed for a long-term sustainable school and there continue to be significant challenges that the School and the sector faces.
“We recognise that the School will face considerable financial pressures including inflation and high interest rates…
“The risk posed by the potential impact of applying Value Added Tax to school fees remains a live risk as does the continued high cost of borrowing.”
Possible merger discounted
In his letter Mr Burt says: “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.”
He said there were strong enquiries from potential new students in the autumn, but “these declined sharply in early 2025 following the implementation of VAT”.
That means “our enrolment for September 2025 is below the viable level required to keep the school open beyond the current academic year”.
He writes: 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.”
The school’s last day will be 5 July.
Mr Burt said the governors’ priority was the wellbeing of the pupils, their families and the teaching staff.
“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.”
Long history
Queen Margaret’s School was established in Scarborough in 1901 by the Woodard Foundation, a Christian education body.
The school was evacuated during both world wars, moving to Castle Howard in the Second World War.
QM finally came to Escrick Park, six miles south of York, in 1949.
Its home is a large country house built in 1758, set in almost 75 acres of parkland.
Former pupils include Katharine, Duchess of Kent, Lady Violet Manners, the socialite, businesswoman and socialite, and Amanda Staveley, the business executive who helped lead the Saudi consortium take over of Newcastle United.
The website says: “In 1986, following an initiative by the parents and governors, the School was re-established under a new company limited by guarantee and registered with the Charities Commission.
“At the same time the School became independent of the Woodard Foundation. Since then the School has enjoyed a period of continual development, investing almost £10 million in new and improved facilities and has gained a reputation for academic excellence.”
“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,” Mr Burt wrote in his letter 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.”