Why many Scottish private schools haven't announced impact of Labour's VAT change on fees

The chief operating officer at the Edinburgh Academy has warned “unanswered questions” are preventing private schools from working out how the UK government’s VAT change will impact fees.

After coming to power in July, Labour ministers confirmed it would end a VAT exemption previously provided to independent schools. It means the standard 20 per cent VAT rate will be added to private school fees from January 1, 2025.

Sector leaders have warned it could result in a rise in fees that will force out thousands of youngsters, leading to an influx at local state schools. They have also asked the UK government to delay the implementation, arguing the impact on Scotland has not been properly considered.

Samantha Byres, chief operating officer at the Edinburgh Academy | John Devlin

In an exclusive interview with The Scotsman, Edinburgh Academy’s chief operating officer Samantha Byers was asked what the change would mean for the school.

“We don’t know yet,” she said. “The speed in which this is coming in has taken us all by surprise. The 1st of January, that has seriously taken us by surprise.

“You can imagine every single school in the independent sector, that’s literally been our work since July, scenario planning.

“Obviously the consultation period only finished on the 15th of September. There are a lot of unanswered questions, which makes it very difficult to scenario plan, down to drilling down as to where we’re going.

“We’ve been transparent with the parents on the basis of, you know, we know we need to pass on some of the cost of this tax. But at the moment we don’t know what that cost will be. Up until the time that this comes into fruition, and prior to that, that is what we’ll be explaining to them”.

Quizzed on whether the school was expecting a fall in enrolments, Ms Byers said: “We don’t know. Absolutely, scenario planning across the board, but we don’t know.

“We are talking to parents, but we’re just going to have to wait and see and keep the doors open for them.”

Both the Erskine Stewart's Melville Schools and George Heriot's School have also told The Scotsman it is too early to provide details of the impact.

A UK government spokesperson said: “We want to ensure all children have the best chance in life to succeed. Ending tax breaks on private schools will help to raise the revenue needed to fund our education priorities for next year, such as recruiting 6,500 new teachers."