Private School Head Teacher Calls VAT on Fees an “Existential Threat”

The principal of a prominent private school in Edinburgh has characterized the UK government’s proposal to impose VAT on school fees as an “ideological” measure, which he views as an “existential threat” to certain institutions within the private education sector. Anthony Simpson informed BBC Scotland News that parents are experiencing “absolute fear” regarding potential fee hikes once these modifications are implemented next year. Chancellor Rachel Reeves is anticipated to detail these proposals during her budget presentation on Wednesday. The UK government has stated that this policy aims to generate additional funds for education, ensuring “every child gets the best start in life.” Anthony Simpson, serving as principal of Erskine Stewart’s Melville School (ESMS), is responsible for both the Mary Erskine school for girls and Stewart’s Melville College for boys. His extensive experience in education spans from teaching mathematics in boarding schools to managing inner-city comprehensive schools in England. Nevertheless, he expresses profound apprehension regarding the impending VAT adjustments. The principal cautions that he is already observing a decline in new student enrollments at his institutions, with potential pupils now gravitating towards the state sector, where he claims “there aren’t any spaces.” From an unoccupied language classroom at one of the school’s campuses, he stated, “it’s not even VAT, it’s the fear of VAT being imposed that’s been the impact on us so far.” ESMS is attempting to mitigate future fee increases by combining the girls’ and boys’ schools in 2026; however, he anticipates that other independent schools will be forced to cease operations due to this policy. Value Added Tax (VAT) is a 20% levy applied to the majority of goods and services bought, constituting a substantial portion of the UK government’s income. Yet, Anthony Simpson strongly objects to the concept of education being subjected to this tax. He remarked, “I’ve never thought of what I’m doing as a product. I’ve thought of it as trying to help society.” The City of Edinburgh council disputes the assertion that there is insufficient capacity for students in the local authority’s state schools. The council reports that more than 9,300 nursery, primary, and secondary students residing in Edinburgh are enrolled in private or independent schools. A spokesperson stated: “Our latest projections show we have capacity for a further 12,700 pupils in our schools, but we’ll continue to keep this under review.” The Institute for Fiscal Studies (IFS) thinktank estimates that the VAT policy has the potential to generate approximately £1.5bn. UK ministers intend to allocate this income to finance additional teachers in England. Given that education is a devolved matter, this would result in supplementary funding for the Scottish government to utilize. However, will this policy cause a substantial decrease in private school attendance? The IFS does not believe it will. The thinktank has previously indicated that three-quarters of students in private schools originate from families within the wealthiest 30% of households. The IFS forecasts a decrease of between 3% and 7% in response to the UK government’s VAT alteration. Irrespective of these figures, Anthony Simpson remains uneasy about the situation. He commented, “We’re still fundamentally dealing with children, and we’re still fundamentally dealing with parents who are doing all they can to do the best for their child. It’s a tax on those people.” Many parents share this perspective. Jane Gilchrist has two daughters enrolled in a private school in Edinburgh. They initially attended a state primary school, but she opted for a change after both girls exhibited indicators of dyslexia. Subsequently, greater support became available, with a class size of 31 in the state sector transforming into a class size of 12. She expresses some ambivalence regarding school fees, noting her background in a “left-wing family” and acknowledging “valid arguments” for private education to be subject to VAT. She recognizes her fortunate circumstance in being able to afford her daughters’ education. However, Jane also refutes the notion that parents selecting private education possess “infinite” income and can effortlessly accommodate higher expenses. Her family is now confronted with approximately £8,000 in additional annual fees. Her two daughters are scheduled to sit their GCSEs within the next 18 months, presenting an additional challenge, as they have not followed the curriculum for the National 5s, which they would undertake if they transferred to the state system. She states her intention to secure the funds, but indicates that expenditures on other items will need to be reduced. She contends that this implies the Treasury will forgo VAT revenue from other areas, explaining, “The money can’t be spent twice”. Jane advocates for a gradual implementation of the VAT to enable families to “absorb the change” more easily, instead of its introduction mid-school year. Conversely, some consider this a judicious policy, primarily designed for more affluent families to contribute more towards funding education for everyone. Barry Black, an education researcher at the University of Glasgow, is also affiliated with the Labour Party. He supports the alteration, asserting a “desperate need” for increased resources within state education. He hopes that any funds generated will be utilized to safeguard teacher numbers and guarantee adequate assistance for students requiring additional support. In his view, this represents a minor adjustment to the tax framework, whereby the wealthiest families would finance “a more equitable education system for all.” While acknowledging their educational provision, he states that private schools are “businesses who are protecting their bottom line,” and he contends that they should now be subject to a tax system comparable to other companies. This viewpoint is broadly echoed by the UK government, which has declared that “ending tax breaks on private schools will raise revenue” to guarantee that “every child gets the best start in life.” Previous surveys have indicated that, generally speaking, this policy enjoys considerable public support. However, for certain parents and educators, it is a measure that will lead to a substantial and abrupt increase in expenses.