Private school pupil numbers down 10% since VAT charged on fees, MSPs told

Private schools in Scotland have seen pupil numbers fall by an average of 10% since Labour’s policy of charging VAT on fees was introduced – with MSPs being told some schools have lost more than a fifth of their students.

While there were 28,870 youngsters studying at independent schools in Scotland in the 2022-23 academic year, figures from the sector show that decreased to 27,781 in 2024-25.

Data from the Scottish Council of Independent Schools (SCIS) further shows that fell again to 25,919 at the start of the 2025-26 school year.

While a SCIS paper said that “reduction of 2,951 pupils is equivalent to an average fall of 10% SCIS school rolls”, it added: “A number of independent schools in Scotland have reported drops of more than 20% in their pupil numbers since VAT was imposed.”

The figures were revealed as SCIS chief executive Lorraine Davidson told Holyrood’s Education Committee there were “assumptions made around the policy that somehow independent schools were a dripping roast and would be able to keep absorbing, absorbing, absorbing” costs such as VAT on fees.

But she insisted independent schools are “charities that don’t exist to make profits”.

Speaking about the introduction of VAT on fees brought in in January 2025, just months after Labour’s election victory, Ms Davidson said: “We did warn the UK Government we would be harder hit because families in Scotland don’t have the wealth levels of some parts of the South East of England, so affordability was always going to be an issue.”

She told MSPs the change had resulted in some children having to leave school in the middle of the academic year, and potentially having to study different subjects.

“It has been really, really damaging to those children,” she said.

She said the change is impacting not just pupils and their families, “but the economies of every community in Scotland”.

With SCIS representing 73 independent schools across Scotland, Ms Davidson said the sector had contributed £500 million a year to the Scottish economy, but added: “This is no longer going to be a sector that is contributing those kinds of sums.”

Adding that “English education is a very different beast to Scottish education”, she accused politicians of making “assumptions” about the “the nature of independent schools and the nature of the sector”.

Ms Davidson said: “Labour politicians in the run up to the implementation were frequently referencing Eton, Harrow, Winchester, ‘they can absorb this, they can protect their families from this’.

“Those schools and the finances of those kind of schools just simply don’t exist in Scotland.

“The sector is completely different and it is not those schools that have paid the price for this policy.”

Committee convener Douglas Ross hit out at the UK Government for failing to send a minister to answer questions from MSPs on the policy.

“We have really struggled to get anyone from the UK Labour Government to attend,” Mr Ross said.

He said Education Secretary Bridget Phillipson had “refused” to appear, saying she believed it was a matter for the Treasury.

Mr Ross added the Scottish Secretary had also “refused” to come, with the committee “eventually” receiving a letter from Dan Tomlinson, the Exchequer Secretary to the Treasury.

“We invited the Education Secretary, she refused, suggesting it was a matter for the Treasury.

“We have found it very difficult, and quite frankly frustrating, that no UK Labour politician has been willing to come here to defend their policy,” Mr Ross said.

In his letter, Mr Tomlinson told MSPs he was “sorry not to be able to attend the committee hearing in person”.

He added that charging VAT on private school fees was a “policy that raises around £1.8 billion per annum by 2029-30” and would therefore have a “significant positive net impact” on Government funds.

Mr Tomlinson went on to say: “More broadly, VAT on private school fees will help deliver the Government’s commitments relating to education and young people.”