Jobs may be lost at Edinburgh private school Fettes College after fee VAT decision

Jobs at a prestigious Edinburgh private school may be lost as it looks to cut costs.

Fettes College said the introduction of VAT on school fees was one of the reasons it took the “difficult” decision to “right size our staffing model”.

The Scotsman reported that the school – which counts former prime minister Tony Blair among its alumni – has opened a consultation process for both teaching and operational staff in order to reduce headcount.

The most recent accounts show 751 students in August 2024, down from 780 the previous year.

Fees for boarders at Fettes College can cost up to £18,000 for the current academic year, inclusive of VAT.

The Labour government imposed VAT on private school education and boarding fees, effective from January 1.

Ministers argue that removing the VAT exemption will benefit the wider education sector, including the 94% of pupils who attend state schools.

A spokesman for Fettes College said the sector is facing a “tough time” and appealed for privacy for the staff involved.

The spokesman said: “Various factors have conspired to increase costs on all organisations and schools are not immune, particularly with the recent imposition of VAT on school fees and rise in national insurance contributions.

“Despite being financially very well managed with a strong student roll, these factors are having an impact on our costs and numbers, and we are obliged to run our operations as efficiently as possible.

“These headwinds obviously affect our families too and our parents need to be certain that we are taking the necessary decisions to run the school efficiently and to use their money effectively.

“A consultation process began in May to right size our staffing model. This difficult decision may result in some redundancies.

“We will continue to provide the highest standard of educational experience, delivering our innovative vision for the school and maintaining our position as a leader in the sector.”