Fears for Fettes College jobs after VAT added to school fees

One of Scotland's top private schools has confirmed jobs could be lost as it looks to cut costs.

Fettes College in Edinburgh - which counts former Prime Minister Tony Blair among its alumni - said the introduction of VAT on school fees was one of the reasons it was faced with the "difficult" decision.

Previously private schools did not have to charge VAT on their fees because of an exemption for organisations providing education but that was removed on 1 January.

The Scotsman newspaper reported Fettes had now opened a consultation process, for both teaching and operational staff, in order to reduce its head count.

The school's most recent accounts show it had 751 students in August, down from 780 the previous year.

In April, the High Court in London heard the government's policy of adding VAT to private school fees would "interfere with the fundamental right to education".

And last month he it emerged private school fees were 22.6% higher on average in January compared with a year ago, according to the body that represents most independent schools in the UK.

Fees for boarders at Fettes College can cost up to £54,000 a year, inclusive of VAT.

The Labour government imposed VAT on private school education and boarding fees to pay for more state school teachers in England.

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

But Fettes College said the sector was facing a "tough time".

A 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."

He added that the consultation process started in May.

The spokesman said: "This difficult decision may result in some redundancies."