Well its just been said some people wont be able to afford the fees with VAT so will pull their kids out. Supply and demand. If a private school fee is so high they cant get enough kids each year they have no choice but to reduce their fees surely?
Whats better? 100 children paying £30k per annum or 70 children paying £36k Gross per annum when you are charging VAT?
A lot of the better private schools have entrance exams (which parents also have to pay for) to pick the most capable children. They turn away more people than they take as pupils. They have waiting lists. There is no point in them reducing their fees if there is a waiting list.