Rachel Reeves tries to reassure Scottish parents over private school VAT

Research commissioned by SCIS has estimated around 6,000 pupils “will have their learning disrupted by being forced out of the sector”.

It also warned the Labour plan “will harm education in the state sector, which will have to cope with an influx of thousands of extra pupils”.

Shrinking sector

VAT on fees will cost the state money in Scotland when the independent sector shrinks by 13 per cent or more, according to the research, which was conducted by consultants BiGGAR Economics.

Ms Reeves travelled to Edinburgh to give a speech to staff and financial services industry leaders at NatWest Group’s headquarters in the city.

Asked what she would say to the parents of pupils at Fettes or Loretto who are concerned about the impact of her VAT plans, she said: “First of all, many schools have already said they wouldn’t pass on the full costs to parents.

“But we have got a crisis in our state schools where we’ve got more and more children being taught by unqualified teachers. We’ve got problems with school buildings. We’ve got a mental health crisis amongst our young people.

“Politics is about priorities and I want every child from whatever background they are to have the very best possible start in life. Every single penny of the £1.5 billion that we will raise from this policy will be invested straight back into our state schools to ensure that all children get a good start in life.”

The shadow chancellor said the Institute for Fiscal Studies had conducted research examining the elasticity of demand for private school fees and argued that the number of children being educated in the independent sector had increased despite recent rises.

Although education is devolved to Holyrood, Anas Sarwar, the Scottish Labour leader, said the policy would lead to extra money coming to Scotland through the Barnett formula.

He warned disgruntled parents against “gaming” the system following reports that some are planning to protest by signing up their children for state schools, even if they do not intend to take up the place.

But Lorraine Davidson, SCIS chief executive, said: “The impact of the VAT plan will be disproportionately felt in Scotland where income levels are lower than in the south east of England and where schools pay business rates.

“Scottish independent schools have had to cope with significantly higher operating costs following increases to teacher pay and pensions and utility bills.”

Mr Briggs said: “Parents are concerned that they will no longer be able to afford the fees and indeed, if they cannot continue their child’s education in an independent school, the disruption this will have.”

He said it was also “clear there is no plan or impact assessment undertaken by the City of Edinburgh Council on the potential additional school places which may be needed as well as the additional support needs for pupils currently being supported in local independent schools.”

A city council spokesman said: “Our latest school roll projection figures show there is capacity in our schools for 65,948 pupils.

“Projected figures for August 2024 session are 53,143 pupils and for August 2025 a total of 52,881 pupils. This equates to 12,000 and 13,000 (spare) spaces respectively in our schools for each year.” Loretto and Fettes were approached for comment.