POSH & CHEQUES
» £40,000-a-year Eton College avoids millions in tax as state schools suffer » Calls to put VAT on pupil fees as it’s revealed they get 80% rates reduction
WEALTHY Eton College saves millions because as a “charity” it gets an 80% discount on its rates bill.
The all-boys school, which educated Prince William, benefits while most state schools pay the full amount.
One expert said: “There should be parity to ensure a level playing field.”
Labour has said it will charge parents VAT on school fees to fund free meals.
AS cuts force state schools to go cap in hand to parents for cash, public schools, including Eton, enjoy tax perks saving them millions.
Eton gets 80% slashed off its rates bill because it has charitable status, while most state schools must pay 100%.
Analysis by rates experts Altus Group found the perk will cut Eton’s bill this year from £831,600 to £166,320 and from £851,400 to £170,280 next year.
The saving of almost £1.4million adds to the £1.8million saved over the past three years, say Altus.
Just over half of private schools are thought to have charitable status and Altus says the 80% rate relief will save them £223million in the next two years.
Shadow Education Secretary Angela Rayner said: “These figures are the latest sign that the Tories are running our
education system for the few, not the many. Even as state schools suffer the worst cuts in a generation, an elite few still benefit from tax giveaways with the government’s blessing.”
Unions say state schools are at “breaking point”, with parents asked to buy supplies, including pens, pencils and toilet roll.
The number of state secondary schools running at a loss went from 8.1% in 2014 to 30.3% last year.
The Education Policy Institute said the average debt was £483,569.
Parents pay £40,000 a year to educate children at Eton. Charity Commission figures show, in the year to last August, the school got £8.5million in donations and almost £51million in school fees.
Eton also had “funds carried forward” of £437million and investment income of £12.3million last year. But the school has still defended its charitable status.
Eton said it was “very committed to its public benefit objectives and to aiding social mobility”.
It went on: “We spend over £7million per annum on financial aid and currently 83 of our pupils pay no fees at all.
“Our pupils are extensively involved in community engagement and social action.”
The Department for Education said: “Statefunded schools receive additional funding from the department in order to cover their business rates in full.”
It amounted to just over £400million in England last year. Voluntary aided, foundation schools and academies are
also eligible for the 80% relief, while special schools do not pay rates.
Robert Hayton, head of UK business rates at Altus, said: “It cannot be right that council-run schools pay normal business rates, but both private schools and academies, using charitable status, receive an 80% discount.
“There should be parity so as to ensure a level playing field.”
Labour vowed to end the VAT exemption for private school fees to fund free meals for all primary school children.
Ms Rayner said: “We will close private school tax loopholes so we can provide a healthy free school meal for every primary school child.”
The Independent Schools Council said they saved the taxpayer £3.5billion last year by educating pupils who would otherwise need state places.
We should have parity to ensure a level playing field ROBERT HAYTON ALTUS HEAD OF BUSINESS RATES