Fettes College says it may have to make staff redundant due to financial pressures, The Herald has reported.

Fettes College is a co-educational private boarding and day school in Craigleith, Edinburgh.

The school said factors including the introduction of VAT on fees and the rise in employer National Insurance contributions were “having an impact on our costs and numbers” despite the school being “financially very well managed”.

A consultation process is taking place aimed at cutting staff numbers which “may result in some redundancies”.

The school employs about 125 teaching staff and 210 operation staff with a payroll of £15.4million. Its latest accounts show income of £24.2 million and outgoings of £26.2 million.

In a statement Fettes College 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.

“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.”