The number of schools that collapsed into administration doubled in the first half of the year, which experts said was down to the government subjecting private schools to VAT from January.

Private sector figures released on Tuesday showed that the number of schools falling into administration rose to 12 between January and July, double the amount in the same period last year.

In July alone there were four companies within the education sector that tipped into administration, according to Kroll, a risk advisory firm. Kroll also said that the number of administrations in the education sector could be nearly 50 per cent higher this year compared with 2024.

• More than fifty UK private schools shut since Labour put VAT on fees

The data comes after the government subjected private schools to the 20 per cent VAT rate from January this year. The sector’s charitable status was also abolished, meaning that from April it was unable to claim relief on business rates, a type of tax private sector firms pay according to the size of premises.

Administrations are a formal insolvency process intended to save businesses and maximise returns for lenders. Administrations are typically used by larger companies where a restructure is needed to save parts or all of the business and are viewed as a barometer on the health of the economy.

Separate official data released by the Insolvency Services on Tuesday showed that the number of companies that became insolvent — when the value of a company’s assets is lower than the value of its debts — rose to 2,081 in July from 2,053 in the previous month.

Benjamin Wiles, managing director at Kroll, said: “While there continues to be economic uncertainty, weak business confidence and unwelcome speculation on further taxes, we are not seeing a surge in company insolvencies.

• Parents beat VAT on private school fees raid by paying £500m up front

“Naturally what is more interesting is the picture within certain sectors. We saw a jump in administrations among education and schools, most likely as a result of the government’s VAT increase that took effect at the beginning of the year.”

Businesses generally are grappling with higher taxes after the £25 billion increase in employers’ national insurance contributions and the 6.7 per cent rise in the minimum wage. Interest rates, although down five times in the past year, remain elevated at 4 per cent.

Last week administrators were appointed at the UK business that runs Claire’s, the high street jewellery retailer, after its American parent group filed for bankruptcy. According to the Insolvency Service, 324 retailers collapsed into insolvency in June, down from 348 in May.