Exclusive:Scottish private school head says Labour's VAT exemption for US troops raises 'troubling questions'

Andrew McGarva, rector at Morrison’s Academy in Crieff, said he had been “dismayed” by reports that the children of US service personnel would not have to pay the newly-imposed tax, while no similar exemptions have been allowed for the UK armed forces or a range of other groups.

The cost of a private education has soared across the UK since January 1, when the UK government implemented its manifesto promise to add VAT to private schools fees.

Some schools have been able to reduce fees by varying degrees before the 20 per cent tax was added, to ease the impact on parents.

However, the overall bill is thought to have risen by an average of about 14 per cent at Scotland’s best known independent schools, according to information released to The Scotsman.

Private schools in Scotland remain concerned about the decision to implement the change in the middle of the school year, which was earlier than expected, and believe the UK government has disregarded its own consultation on the policy.

The Scotsman recently revealed how the Scottish Government had been among those raising concerns, as part of the consultation.

There are more than 10,000 serving US military personnel in the UK, although the number whose children attend private schools is not known.

HM Revenue and Customs (HMRC) confirmed to The Telegraph last week that VAT on fees does not apply to children of US service personnel due to the NATO Status of Forces Agreement, signed in 1951.

Mr McGarva said: “This decision highlights inconsistencies in the imposition of VAT on school fees and raises troubling questions about our government’s priorities.”

The Morrison’s Academy rector added: “What makes this policy particularly frustrating is the government’s steadfast refusal to consider any form of exemption or delay for vulnerable groups.

“Families of children with additional needs, schools serving niche communities, and those supporting the armed forces have all been dismissed.

“However an exemption has now been made for US personnel, supposedly in adherence to an agreement signed over 70 years ago.

“While international cooperation is important, it is hard not to question why this agreement takes priority over the voices of the UK’s own citizens, especially given the government’s attitude toward other international commitments, such as the European Convention on Human Rights.

“It feels as though this decision has more to do with keeping in step with the US than protecting children’s education.

“The introduction of this ‘education tax’ is not about improving the state sector or addressing inequalities; it is a politically motivated move that risks harming children, families and communities across the UK.

“That our government would prioritise international obligations over the welfare of its own citizens is profoundly disappointing.”

While the Labour government at Westminster rejected calls to exempt families of UK troops from VAT, it did announce an increase in the Continuity of Education Allowance (CEA).

The taxpayer-funded support aims to provide stability to the children of armed forces personnel who can be regularly posted to different locations. Around 4,700 children currently receive the support.

A UK government spokesperson 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 per cent of children in state schools, including those from military families, to achieve and thrive.

“Individuals in US Forces have always been able to benefit from the VAT free purchase scheme, providing VAT relief on goods and services in the UK.”