Eton College says plans to open an academy in Dudley have not been affected by the introduction of VAT on private schools.

The Labour government will remove exemption from the tax for private schools from the start of 2025 and, while the fine details will be announced in the budget on October 30, it has already been made public the change will raise up to £1.5 billion for the chancellor’s coffers.

Eton announced in August 2023 it had been given permission by the Department for Education to open a free sixth form college in Dudley called a Star Academy.

Despite the new tax, which could push fees at the top school up to around £63,000 per year, they say plans for the Dudley academy are on track.

An Eton Star Partnership spokesperson said: “Progress towards opening Eton Star Dudley continues to gain momentum. 

“Working with Dudley Council and other key local stakeholders and schools, Eton College and Star Academies have never been more committed to our plans for a truly transformative college in the area.”

Star Academies are set to open in Dudley, Teeside and Greater Manchester, with the aim of encouraging young people from deprived backgrounds to gain places at leading universities.

While Eton is not able to confirm the Dudley campus will open, the borough council has a date in mind.

Councillor Paul Bradley, Dudley cabinet member communities and economic delivery, said: “The plans to bring Eton College and Star Academies to Dudley continue. 

“Heads of terms for lease of land have already been agreed, with a view to targeting an open date of September 2027.”

The Dudley campus, which is expected to accommodate 240 students is planned to be on part of a council car park in Stafford Street.

A previous plan earmarked a site on Castle Street for the college but the location was later rejected due to the cost of clearing the land.