Two independent preparatory schools have announced they will close as a result of financial pressures, including the government’s VAT on fees policy.

Park Hill School in Kingston, Surrey and Falcons School in West London both stated that VAT was one of the factors leading to a reduction in pupil numbers.

In a letter seen by The Telegraph, Amit Mehta, chief executive of Inspired Learning Group, which owns Park Hill, said pupils would be relocated to join sister school Westbury House School in New Malden, southwest London, from January.

Mehta said: “We are incredibly proud of everything Park Hill has achieved over the years. However, like many schools, it also faces challenges, and this evolution offers fresh opportunities for all our pupils.”

Inspired Learning Group, chief operating officer Justin Spanswick added: “The decision was made because of the downward trend in pupil numbers at Park Hill, due in part to the introduction of VAT on school fees.”

A spokesman for Falcons school said: “The consultation took place as the school has been loss-making since we acquired it, with enrolment under 50% over the last two years. This has been intensified by the recent government changes such as VAT.”