Prior Park College, a co-educational Catholic independent school in Bath has suspended its fees in advance scheme until “the detail of how VAT will be imposed is known” The Telegraph has reported.

Emma Sandberg, the school’s director of operations and finance, informed parents that “anti-forestalling measures will be in effect from 5 July until any legislation is enacted” and the school is “regrettably unable to accept any further applications” for the scheme.

The decision was caused by fears parents could be liable for a tax bill if they pay fees in advance as the new Labour government has not clarified its intentions regarding it VAT policy on school fees.

Chancellor Rachel Reeves, the warned ahead of the election that Labour could introduce ‘anti-forestalling’ legislation allowing it to levy VAT retrospectively on parents paying advance fees.