Edinburgh private school Fettes College warns of staff cuts
The school's fees range from £5,000 to £18,000 per term depending on age and whether pupils are boarding there but, as reported by The Scotsman, it is considering cutting staff amid financial pressures.
The private school said that factors such as the introduction of VAT on fees and a rise in National Insurance were "having an impact on our costs and numbers" despite Fettes College being "financially very well managed".
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It is undertaking a consultation process aimed at cutting staff which "may result in some redundancies".
The school employs around 125 teaching staff and 210 operation staff for a payroll of £15.4million, with its latest accounts showing income of £24.2m and outgoings of £26.2m.
Fettes College said in a statement: "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.'
Private schools were previously exempt from VAT, but the UK Government changed that policy in an effort to raise around £1.8bn a year for state schools.
Earlier this month a legal challenge by private schools, pupils and parents was rejected by the High Court.
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