A MALVERN girls school is looking for new owners after changes in the VAT law.

Malvern St James School on Avenue Road has written a letter to former students and parents confirming it is exploring joining a 'family' of schools through a change of ownership.  

The school's chair of governors, Michael Hodges, has revealed to the Gazette that it has entered into a period of exclusivity with an education group. 

The school has cited the Government's recent announcement to impose VAT on independent schools, as well as the cost-of-living crisis and teacher shortages in key subjects, as reasons behind the decision. 

READ MORE- The Unicorn pub in Malvern- landlords leaving but still open

READ MORE- Malvern Hills College- Hopes high education will return 

From October 30, 2024, school and boarding fees for school terms starting on or after January 1, 2025 will be taxable at the standard 20 per cent VAT rate. 

Treasury minister James Murray said this is to enable funding for 6,500 new teachers in state schools.

He added the Government had carefully considered the impact of the changes on pupils and their families in both the state and private sectors.

Mr Hodges told the Gazette: "We have been looking for several years to align ourselves with the right sort of group, but in recent months we have been focusing on this with increasing intensity.

"Joining a family of schools will give us quite a lot of exciting opportunities and unlock the benefits and security that provides. 

"We have been looking to find a group that aligns with our values to ensure the school has a long-term future providing quality education. 

"It is impossible to make commitments for the future but it is safe to say there are no anticipated changes to the school other than the opportunity to become more outward-looking."

The letter, seen by the Gazette, said: "Like most independent schools in the UK, Malvern St James is facing significant challenges. 

"These include the impact of the cost-of-living crisis, the Government’s announcement to impose VAT on independent schools, and teacher shortages in key subjects.  

"After careful consideration, one of the options we are now exploring is joining a ‘family’ of schools,  both in the UK and internationally, through a change of ownership.

"We understand that change can feel unsettling, but we want to reassure you that the Governors’ focus is on securing a bright and sustainable future for Malvern St James."

The school is currently in a period of due diligence, where it will be evaluated whether this is the right step forward for the school.