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Education, Children and Young People Committee 18 February 2026 [Draft]

18 Feb 2026 · S6 · Education, Children and Young People Committee

Item of business

VAT and Independent Schools

Lorraine Davidson (Scottish Council of Independent Schools) Watch on SPTV

Thank you, convener, and members of the committee, for your kind invitation to give evidence today. We appreciate the opportunity to assist the committee’s consideration of VAT on independent school fees and to discuss our members’ potential for future collaboration with the wider education sector and local communities in Scotland.The Scottish Council of Independent Schools represents 73 schools across Scotland, with just under a third designated as specialist—that is, for those with significant educational needs. The remainder are mainstream, many of which offer additional support provision for percentages of pupils similar to those identified in the state sector.We are concerned by the disproportionate impact that VAT on school fees is having on children, young people and the wider community in Scotland, as we predicted it would. The United Kingdom Government frequently referenced Eton, Harrow and Winchester ahead of the VAT on fees policy being introduced. However, Scottish independent schools are very different in culture and finances from those schools, and do not fit the profile that the policy was designed for.When Cedars school in Greenock and Kilgraston school in Perthshire closed, the pupils there had their education disrupted, teaching, support and administrative staff lost their jobs, local suppliers lost business and state schools in Inverclyde and Perth and Kinross had to accommodate additional pupil numbers at short notice.The Exchequer Secretary to the Treasury’s letter to the committee contained no Scotland-specific analysis and relied instead on long-term estimates and funding decisions that apply only to England. The overall drop in our pupil numbers since VAT was imposed has been around 10 per cent and some schools have seen drops of more than 20 per cent. If current trends continue, by next academic year, VAT on school fees is likely to cost Scotland more than it raises.For children forced out of the sector, that means disrupted education, loss of peer networks and perhaps being unable to access a place at their local state school or access a similar subject course programme if they are in secondary 3 or above, as well as potential separation of siblings who had previously been at the same school. For pupils with additional support needs, such disruptions are particularly damaging.At a time of increased teacher workload, high numbers of children with additional support needs across all schools and public funding constraints, as a largely not-for-profit charity sector, we are committed to building on our partnerships across state schools and communities.Catherine Dyer, John O’Neill and I are very happy to take your questions and hear your views on how we can build on our partnership work for all children in Scotland.

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Education, Children and Young People Committee 18 February 2026 [Draft]

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