Earlier this month, Bishop Challoner School, located on Bromley Road in Shortlands, announced it would be closing permanently after running for 75 years.
The school cited a combination of falling birth rates, the cost-of-living crisis, and the anticipated introduction of VAT on school fees as the key reasons behind its closure, stating that these factors had led to a significant decline in pupil numbers and rendered the school financially unsustainable.
Bromley Council’s leader, Colin Smith, has publicly criticised the Government’s VAT policy, describing it as “vindictive” and blaming it for putting extra pressure on independent schools like Bishop Challoner.
However, financial records filed with the Charity Commission show that the school has been operating at a deficit for several years, long before the Government’s VAT policy was introduced.
In the financial year ending August 2020, the school spent £3.96 million while bringing in just £3.62 million, just over £340,000 less.
This pattern of overspending continued in the following years.
In 2021, the school brought in £3.67 million and spent £3.93 million, creating a gap of more than £250,000.
In 2022, it earned £3.66 million and spent £3.76 million.
In the most recent year on record, which ended in August 2023, the school made £3.51 million and spent £3.65 million.
By that point, the school had total liabilities of around £1.14 million, including nearly £940,000 in short-term debts due within a year.
Although it had assets worth more than that amount, the accounts show it had less than six months of savings.
The school’s 2024 accounts have not yet been filed with Companies House and are now overdue.
This is close to the point where the Charity Commission warns that an organisation may not be able to cope with sudden financial problems.
The Commission advises that charities should keep enough money in reserve to deal with unexpected costs, so they can continue to support the people who rely on them.
It was announced last Thursday (June 12) that the school would be closing on July 4, with classes continuing until the end of term to minimise disruption.
Mrs P Colling, Chair of Trustees, said: “This is a very difficult time for our parents, pupils and staff. “We are saddened that, despite our best efforts, the school has to close.
“The Board of Trustees is immensely proud of Bishop Challoner School’s successes over many years, and we are especially grateful to our staff who have always put the interests of our pupils first.
“They are a loyal and dedicated staff.
“The Trustees and the senior leadership team at the school are working closely with parents to help identify places in schools so our pupils continue to receive the high-quality education they deserve.
“We have written to the parents of our school, outlining the support available, and a meeting will be held for parents to discuss the situation further.
“We will also provide support for our staff to help them find roles elsewhere.
“We are acutely aware of the impact this decision has on our young students.
“Bishop Challoner is a school that has built its reputation on outstanding pastoral care, and this makes the decision all the harder.”
The school has said it is working with parents to help find places at other schools for current pupils, and support is being offered to staff.
