Community-minded independent schools deserve tax relief on business rates
That the Scottish Government should consider following advice given by the authors of the Barclay Review on the independent schools’ sector of education in Scotland suggesting that these schools should lose their tax relief on business rates is disappointing.
Independent schools provide a recognised world quality brand of education for over 30,000 Scottish children who would otherwise need to be educated at the cost of the taxpayer. The vast majority of these schools retain charitable status as an acknowledgement that they are providing an essential service to many families and providing financial assistance, often at the level of full fees remission to aspirational parents whose children could not otherwise attend these schools. In addition, they open the doors of their facilities to the public (at the Erskine Stewart’s Melville Schools, there were more than 90,000 public user hours of our sports centres in 2016-2017) and make many of their services accessible to the public.
(Arboretum sports ground in Edinburgh is leased by the Edinburgh City Council to ESMS, who maintain the council grounds free of charge, providing outstanding sporting facilities to two Edinburgh schools at no cost, and to three local cricket, rugby and football clubs at a cost commensurate with charges levied by Edinburgh Leisure).
All schools retaining charitable status have been through an exhaustive public benefits test process undertaken by the Office for the Scottish Charity Regulator. One acknowledgement of the work done by these schools to society’s advantage is to provide them with tax relief on business rates of 80 per cent. The Barclay Review suggests such schools should lose that relief.the benefit to the Scottish exchequer of this move would be a paltry £5 million but the detriment to the Scottish public in the loss of free or partially funded places at independent schools, and the loss of access to exceptional leisure facilities, would be much greater.
The phrase “cutting off your nose to spite your face” comes readily to mind and should be sensibly avoided. JN DAVID GRAY
Principal Erskine Stewart’s Melville Schools
Queensferry Road, Edinburgh