Scotland’s largest private school is launching a fundraising appeal amid concern that Labour’s VAT bill for fees will put pressure on parents to withdraw their children.
George Watson’s College in Edinburgh said 50 pupils had either left or opted not to join at the beginning of the 2024-25 year.
A VAT rate of 20 per cent was added on January 1 to fees already increased last year for other reasons, fulfilling an election manifesto pledge by Labour.
The school, which charges almost £20,000 a year for senior pupils, has pledged not to increase fees this year but wants to prevent a pupil exodus.
It plans to launch a fundraising appeal among the wider ‘Watsonian community’ – with one of its aims to help parents who cannot afford the present rises.
An appeal takes place annually and the school said it was not solely aimed at raising cash to help families fearful of the impact of VAT on fees, but this would be ‘part of the messaging’.
Former pupils include the Olympian Sir Chris Hoy and rugby greats Gavin and Scott Hastings.
The school said the VAT introduction had caused uncertainty for pupils and their families and a fall in its roll.
Lisa Kerr became the 300-year-old school’s principal last year

A general view of George Watson’s College, Edinburgh
Lisa Kerr, who became the 300-year-old school’s principal last year, said 2025 had brought ‘the reality of a new education tax and a very substantial and unexpected rise in employer National Insurance contributions’.
She added: ‘There will be negative consequences for all children, since many will be forced out of independent schools and already strained state schools will see an unexpected influx of pupils in underfunded classrooms where teacher recruitment is already a problem.’
Ms Kerr, previously principal at King’s Charles’s old school Gordonstoun, said that since joining George Watson’s – which has almost 2,500 pupils – many parents had raised the issue of fee affordability.
She said adding VAT pushed ‘many families to breaking point so we will be launching a fundraising campaign to support our aim that no child should immediately have to leave Watson’s because of the VAT bill’.
Ms Kerr added: ‘I hope many Watsonians will feel able to support that.’
The school said it was implementing a three-year fee ‘affordability strategy’ involving cost and efficiency savings.
A spokesman said: ‘This is funded through a combination of cost reduction, identifying more non-fee revenues and the support of our generous donors.’