Private schools say rolls down more than 1,000 since VAT imposed on fees

Independent schools in Scotland say the number of pupils they have enrolled has dropped by more than 1,000 since the introduction of VAT on fees.

The organisation which represents Scotland’s private schools said the “vindictive and flawed” policy will end up costing the taxpayers money.

The Scottish Council of Independent Schools (SCIS) said a census of members had found there are 25,919 pupils in the current school year, compared with 27,781 at the same point in the previous year.

Independent school rolls have fallen by around 10% since the 2022/23 year, the organisation added.

The SCIS highlighted a report by consultants Biggar Economics which said introducing VAT on private school fees would end up costing the Government money through behavioural changes.

The UK Labour Government imposed VAT on private school education and boarding fees, effective from January 1.

Ministers argued removing the VAT exemption would benefit the wider education sector, including the 94% of pupils who attend state schools.

Earlier this year, the prestigious Fettes College in Edinburgh said the introduction of VAT on school fees was one of the reasons it took the “difficult” decision to consider cutting jobs.

SCIS chief executive Lorraine Davidson said: “We warned the UK Government that imposing VAT on fees would damage state education in Scotland, and harm the economy, and unfortunately we have been proved correct.

“The SCIS annual census shows thousands of extra pupils are now being educated at the taxpayers’ expense, and many young people can’t find a state school place in their local area due to the pressure this is causing on the state system.

“It’s time for the UK Government to admit it got its sums badly wrong and reverse this vindictive and flawed policy, which far from raising money for state schools, is on course to leave taxpayers footing the bill for educating thousands more pupils.

“Despite this assault on our sector, SCIS schools will continue delivering high quality education and make fees as affordable as possible. Our schools make a positive contribution to Scottish education and to communities throughout Scotland.

“We will not allow this policy to deter us from our mission to build on that work.”

Scottish Conservative education spokesman Miles Briggs said: “These stark figures show that Labour’s vindictive decision to impose VAT on independent schools is having the completely opposite effect to what they claimed.

“Their flawed policy is undermining the sector’s contribution to the economy and is putting a greater burden on Scotland’s state schools, who are already overwhelmed due to SNP cuts.”

A spokesman for the Treasury said: “Ending tax breaks for private schools will raise £1.8 billion a year by 2029/30 to help deliver 6,500 new teachers and raise school standards, supporting the 94% of children in state schools to achieve and thrive.”

The Treasury said that as a percentage of the overall school population across the UK, private school pupils have remained the same – at 6.5%.

The government department also said there are still more pupils in private schools than pre-pandemic, despite increases in fees.