Scotland's last Catholic boarding school to close year after being saved

A private school in Perthshire has announced “with great sadness” that it will shut with immediate effect just a year after it was saved from closure.

Kilgraston School in Bridge of Earn blamed a large deficit alongside long-term debt and Labour’s looming VAT policy.

In a letter on Tuesday, the school’s board of trustees said the decision was not taken lightly and comes after serious financial pressures.

Pupils were set to return to Scotland’s last Catholic boarding school this month.

Fees for the school reportedly cost around £39,000 a year for boarding pupils and around £23,000 for day pupils.

Kilgraston was set to be bought by Achieve Education but the provider later decided to no longer financially support the school.

The school, founded in 1930, pointed to Labour’s policy to implement VAT on independent schools from the New Year and a funding shortfall of £860,000.

It also said it suffered from a low student roll of just 173, with about 210 pupils needed for the school to break even.

Kilgraston said it owes around £3.4m in loans and finance commitments over the long term.

The school listed Keir Starmer's decision to tax private school as one of the reasons for its closure. — The school listed Keir Starmer’s decision to tax private school as one of the reasons for its closure. STV News

The school board said: “We are extremely sorry to let you know that with great sadness, the trustees have made the difficult decision to close Kilgraston School with immediate effect.

“We have not taken this decision lightly.

“We know that this news will come as a shock to you all and we are deeply saddened by the impact that this will have on pupils, parents, guardians, alumnae and teaching and support staff.”

It said its priority would be to support parents in finding a new school for their kids as they return from the summer holidays.

With rising debts “and the possible impact of VAT of school fees” the school tried to find another investor, and managed to raise hundreds of thousands of pounds.

But it said it was not enough and that “the last plausible investor” pulled out on Monday.

“Due to a lack of cash flow and without securing a long-term investor,” the letter said, “the trustees were advised that they were no longer able to continue trading.

“We therefore now have no alternative but to close Kilgraston School with immediate effect from Tuesday, August 13.”

The school was previously at threat of closure last year but was saved after successfully raising £2m.

A spokesperson for the board of trustees, said: “Last year was extremely difficult for the Kilgraston community, as we faced significant challenges to keep the school open. Education provider Achieve Education stepped in to financially support and manage the school in the short term and to buy the school in the longer term.

“Unfortunately, recent unexpected changes within Achieve Education have resulted in them reassessing their commitment to investing in Kilgraston and they are unable to proceed with the legal purchase of the school.

“As a result, we have been left with both a short and long-term funding deficit. The Board of Trustees has explored a number of opportunities in a bid to save the school but unfortunately none of these have offered a financially viable solution. This leaves the school with no choice but to close.

“At this point, we have three priorities: the welfare of staff, the welfare of pupils; and assistance for parents in finding places for their children at other schools. We will do all we can to help ensure a smooth transition for all affected. We are very sorry not to be able to continue operating a school that is close to all our hearts.”