A historic independent school has suddenly shut down, blaming economic pressures caused by Labour's introduction of VAT on school fees.

Our Lady's Abingdon in Oxfordshire announced its closure with immediate effect on Monday - leaving hundreds of pupils without school places for September.

Governors said Chancellor Rachel Reeves's 20 per cent levy, as well as increases in employer national insurance contributions were the final nails in the coffin for the 160-year-old institution.

The Catholic school for boys and girls aged seven to 18 had suffered a sharp drop in pupil numbers in recent months - with families priced out by the rising fees.

Our Lady's Abingdon said it had been exploring a number of options to keep the school open but that talks 'broke down' last week, leaving no 'viable path forward'.