According to the Adam Smith Institute (ASI), over 65,000 pupils have been forced out of private schools in the UK due to escalating fees caused by Labour's new VAT policy. This estimate is more than three times the government's initial figure of 17,000. Joanna Marchong from ASI noted that the cost of educating these displaced students could surpass £500 million annually if they transition to state schools. The ASI's concerns are underscored by the closure of 115 mainstream private schools since Labour's election, with only 20 new schools opening during the same period. The economic impact of this trend is already being felt, with a report indicating that £60 million has been lost from the Scottish economy due to the policy. The government claims that the policy will generate over £1.8 billion annually by 2029/30 to support public education, but critics argue that the fiscal damage may outweigh any short-term revenue gains. The situation is further complicated by the rising costs of private special schools, which remain unaffected by the VAT policy.