The Scottish private school sector is facing a financial crisis, with the removal of VAT exemption from January 2025 having a devastating impact on their viability and the ability of parents to afford tuition. This has led to the closure of smaller independent schools, which have attributed their decision directly to the new VAT policy. The conversation at the Scottish Council of Independent Schools' (SCIS) election hustings revolved around the finances of the sector, with candidates from all parties praising the work of private schools but also recognizing the financial pressure they are under. The question of whether the UK Government's VAT policy will deliver financial benefits for Scottish state education remains unresolved. While the UK Labour Government initially promised to use the revenue from VAT on independent school fees to improve state education, the situation appears to have changed since that promise was made. The Scottish Government cannot quantify the impact or guarantee any Barnett consequentials will be coming, leaving the future of the sector uncertain. The Holyrood election could have significant implications for the independent sector, with the Scottish Greens' proposed levy on mainstream independent schools being the most potential to directly impact private schools. The outcome of the election will determine the future of the sector and the financial support it receives from the government.
