Council chiefs reject claim VAT on private schools will lead to pupil exodus to state sector

EXCLUSIVE: COSLA have downplayed suggestions the VAT policy will place a burden on council-run comprehensives.

Council bosses have dismissed concerns UK Government plans for VAT on private school fees will put huge pressure on the state sector. Umbrella group COSLA said the policy will not have a “wide-spread impact” on school capacity.

The Labour Government confirmed VAT of 20 per cent will be imposed on school fees from January. Critics say the policy will lead to an exodus of kids out of the private sector into state schools due to parents being unable to afford the tax.

The Lib Dems and Tories are also worried about the impact on Edinburgh schools, where at least 20 per cent of children attend private schools.

But local government papers have downplayed the fears and backed up the Government view state schools can cope. One document stated: "Officers confirmed that they had engaged with the Scottish Government on this matter, and that the feeling generally was that any displacement was broadly manageable.”

Another paper added: “Generally, there is a sense that the impact of introducing VAT on ‘mainstream’ private/independent schools will not have a wide-spread impact on school capacity.”

However, COSLA said clarity is required on the impact on schools for children with additional support needs and where young people are in secure accommodation. The VAT policy is expected to raise around £1.5bn for education, with around £150m likely to be sent to Holyrood.

SNP First Minister John Swinney is supportive of the VAT move and signalled any extra cash would be spent on schools.

A spokeswoman for the Scottish Council of Independent Schools said: “While there may be overall capacity in the system, it’s often not in the areas or the year groups where it’s needed. Children who are trying to move into the state sector are experiencing significant problems finding school places.

“This includes pupils who aren’t able to get a place in any of their nearest seven secondary schools, pupils who are allocated a space so far from their local community that their local council will foot their £8,000 travel costs, and children who can’t be placed in the same school as their siblings. The issues are particularly acute in the exams years in secondary schools.”

It came after Bridget Phillipson, Labour’s Education Secretary, rejected claims private schools would cut back on bursaries after VAT is introduced. A newspaper reported that assistance such as support for pupils from deprived backgrounds would suffer.

She replied: “I don’t accept that". Phillipson said: “Some of them have got very large incomes and actually a relatively small percentage of that income going towards bursaries.”

She added: “That list in the Sunday Times had some very wealthy schools with significant assets and big levels of income who aren’t putting a huge amount of that money towards bursaries and support in terms of partnership working with the state sector.

“Changes around VAT should not and must not impact on the work that they are doing around bursaries. There is an expectation of course that that would continue.”

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