Charity tax cut will drive us to the wall, say private schools

SCOTLAND’S independent schools have accused SNP ministers of a politically motivated attack that could put them out of business.

Some said plans to cut their right to charitable relief from business rates threatens their future.

Others warned the move will force them to increase fees and cut bursaries.

One private school headmaster accused ministers of an ‘unfair, excessive and politically motivated’ attack designed to force the sector’s ‘dissolution by the back door’.

A consultation on a series of reforms proposed in a review of non-domestic rates by former RBS chairman Ken Barclay closed recently, with ministers due to announce their next move in the coming months.

But the consultation exposed the strength of opposition from private schools to the plans.

Strathallan School in Perthshire said its charitable relief is currently worth £387 per pupil and helps support 90 teaching and 90 non-teaching jobs.

Its submission said: ‘The school generates over £13million of gross fees which are then effectively spent within the local community of Perth and Kinross. Our custom sustains a number of local firms and service providers.

‘This financial year we will give over £1.7million of means-tested fee support in order to allow parents who could otherwise not afford a Strathallan education to send their children to the school.

‘In keeping with many other independent schools, we operate on exceedingly tight margins – so the loss of rates relief is material to the finances of the school and may result in our ability to offer such generous means-tested fee assistance being compromised.’

Rod Grant, headmaster of Clifton Hall School in Edinburgh, said: ‘Attempting to charge rates to independent schools seeks only to remove a small number of charities – under 100 – from the 30,000plus charities in Scotland with a charge that is unfair, excessive and politically motivated.

‘If the Government wishes to end independent education, it should simply state that as an objective rather than seeking its dissolution by the back door.’

Melvyn Roffe, principal of George Watson’s College in Edinburgh, said: ‘Even a marginal reduction in numbers of pupils in the schools is likely to have an immediate impact on affordability of fees for parents.’

Public Finance Minister Kate Forbes said: ‘The Scottish Government is committed to delivering the Barclay Review as part of our commitment to maintaining a competitive non-domestic rates regime for businesses in Scotland.

‘We recently consulted on a number of the recommendations requiring primary legislation. The consultation concluded on September 17 and we are analysing the responses to inform the delivery of these reforms.’

It is estimated that a decision to withdraw charitable relief on business rates for private schools will cost the sector £5million a year.

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