VAT: Head teacher accuses Rachel Reeves of 'live experiment' on private school pupils as 9-month warning given
The head teacher of St Leonards independent school has accused the UK Government of a ‘social experiment’ on children’s education
The head of one of Scotland’s most prestigious fee-paying schools has accused the UK government of carrying out a “live experiment” on children’s education.
Simon Brian, head of St Leonards School in St Andrews, predicted the impact of imposing VAT on Scotland’s independent schools would reach a “tipping point” in nine months’ time. He made the stark claim as he called for the Chancellor to repeal the policy.
A recent census of school rolls carried out by the Scottish Council of Independent Schools (SCIS) showed a drop of 3,000 pupils over the past two years.
Mr Brian said: “VAT on school fees in Scotland has gone from being a political soundbite to a live experiment with children’s education.
“My plea to Keir Starmer and Rt Hon Rachel Reeves is straightforward and respectful: please look at the Scottish data, do the maths and be prepared to adjust course.”
Ahead of next week’s UK Budget, Mr Brian cited the SCIS figures showing a drop in enrolment of 10.3 per cent in Edinburgh and 10.2 per cent in Glasgow since VAT on fees was announced.
Independent analysis from the policy group BIGGAR Economics suggests that once pupil numbers fall by 13 per cent, VAT on fees stops raising money and becomes a net cost to the public finances.
The same analysis revealed that Scottish independent schools contributed half a billion pounds to the Scottish economy, supported 12,000 jobs across the country and saved the taxpayer £200 million in education costs.
Referencing that analysis, Mr Brian said: “Here is the stark warning - if the current trend continues, that tipping point will be reached by the 2026/27 school year. That’s in nine months.
“A tax that was meant to fund education is, on current trends, about to become one of the very few taxes that will actually cost the state more money; while, by the way, overloading the educational system and, incidentally, disrupting thousands of young people’s schooling.”
St Leonards was named Scotland’s independent school of the year for academic performance in 2024.
The UK Labour government imposed VAT on private school education and boarding fees from January 1.
Ministers had argued removing the VAT exemption would benefit the wider education sector, including the 94 per cent of pupils who attend state schools.
But a spokeswoman for the SCIS said the umbrella body had warned the UK government of the effect of introducing VAT on fees and “unfortunately we have been proved correct”.
“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,” she said.
“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.”
Labour’s introduction of VAT on fee-paying schools has had a varied impact on the sector, according to head teachers approached by The Scotsman.
Colin MacIntosh, head of Edinburgh prep Cargilfield, said his school had remained relatively unaffected by the increase.
Other schools have reported making cuts to provisions to limit the need to increase fees for parents, while some have absorbed the rise.
Dan Wyatt, rector of Kelvinside Academy said the move had “shrunk the marketplace” of families who could afford schools fees and that his school had lost pupils due to the price squeeze.
Fettes College, which counts former prime minister Tony Blair among its alumni, launched a consultation process in June designed to lower its staff headcount as it contended with the fallout from the introduction of VAT on private school fees and the rise in National Insurance contributions.
Scottish Conservative shadow cabinet secretary for education and skills Miles Briggs said the “stark warning” from Mr Brian and other senior figures at Scottish private schools “could not be ignored”.
Mr Briggs said Sir Keir Starmer’s “ideologically driven policy is costing jobs, letting down pupils – especially those with additional needs – and placing a huge extra strain on state schools”.
“Labour promised the money raised by this tax hike would be ringfenced for schools, but then diverted the money to pay for housing,” he said.
“This latest warning makes it clear that it will ultimately cost taxpayers by putting independent schools out of business, which will only place extra pressure on Scotland’s state schools who already at breaking point after years of neglect and underfunding from the SNP.”
The Treasury was approached for comment.
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