The school’s deficit is expected to exceed £1million by 2027
A preparatory school in Lisburn has announced that the school could be forced to close following the introduction of a VAT on private schools which was introduced by the Labour Government back in January.
In an email sent to parents which has been seen by Belfast Live, Wallace High School in Lisburn informed parents that they have entered a Pre-Consultation Phase of their Development Proposal which may result in the closure of the preparatory department in the school from August 2027.
A document attached to the email set out that while “the school’s annual finances indicate that it can live within its budget”, they had a deficit of £16,051 in 2023/24 and then a tenfold increase in 2024/25 to £171,945. Their deficit is expected to then rise to £1million by 2027 rising to over £2 million by the end of 2031/32.
In the letter to parents, the Chair of the Board of Governors, Neal Lucas, said: “As you are aware, the last year has brought increasing challenges to the Wallace Prep Department. In January, we met with you to outline the need to increase fees, largely due to the introduction of VAT on private schools from 1 January 2025. At that meeting, we shared the Prep Department’s increasing financial pressures and deficit.
“In response, we committed to a strategy aimed at increasing enrolment including extended hours, an enriched curriculum, and enhanced marketing efforts. Despite these initiatives, enrolment into P1 did not reach sustainable levels. The climate of uncertainty contributed to a further decline in numbers, and as communicated last year, we engaged an external consultant to review the long-term strategy for the Prep Department.
“The Board of Governors has now considered the consultant’s report which examined demographic trends, financial projections and potential options. After careful deliberation, we have concluded that a sustained increase in enrolment, alongside significant fee rises, is not achievable.
“It is with deep regret that we inform you that we are entering the Pre-Consultation Phase of a Development Proposal which may result in the closure of Wallace Prep Department from 31st August 2027.
“We recognise the profound impact this proposal may have on our pupils, families, staff and the wider school community. We are committed to approaching this process with openness and sensitivity, ensuring that all voices are heard.”
In the document sent to parents, the school sets out how the impact of VAT on fees in NI has not been estimated, with actual school enrolment figures for 2025/26 not available until 2026.
“However, based on the experience noted in England, there could be an initial drop of at least 6% in Year 1 enrolments. Many parents of prep-school parents will have noted a significant rise in fees over the last few years due to fewer pupil enrolments, cost of living/inflation rises, and VAT amongst other factors. Any future fee increases must be considered in this context,” they said.
In a statement to Belfast Live, a spokesperson for the school said: “The Wallace High School has begun a series of consultations with parents and staff with regards to the future provision of the Preparatory Department.
“The decline in pupil enrolment numbers within the Department in recent years has led to the Board of Governors’ decision to begin a Pre-Consultation Phase of a Development Proposal. This could result in the eventual closure of Wallace Prep Department, not earlier than August 2027.
“The Pre-Consultation Proposal has been shared with parents who have also been invited to an information session. Following this, a written consultation period will be opened.
“The Board of Governors will review all responses before deciding whether to proceed with a formal Case for Change through the Education Authority.”
Mr Neal Lucas, Chairman of the Board Governors, added: “The Prep Department has a proud and distinguished history within The Wallace High School. We recognise the emotional impact this proposal may have on our staff, families and wider school community.”
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