PRIVATE SCHOOLS HIT WITH £5M BILL
Cash raid may cost poor pupils their place
PRIVATE schools will be forced to push up fees and slash bursaries after the SNP confirmed they must now pay £5million a year in business rates.
Finance Secretary Derek Mackay yesterday announced he will implement all the recommendations of this year’s Barclay Review of non-domestic rates – except one.
This means that while universities will be able to use charitable status to claim relief on rates, independent schools have been stripped of the right.
This will see them pay £5million a year in business rates, with fears this could see some parents forced to take their children out of school. Others will be turned away due to a drop in the funding of bursaries and paid-for places.
The Scottish Council of Independent Schools (SCIS), along with a number of principals from schools including Gordon- stoun, had urged Mr Mackay not to implement the recommendation put forward by former RBS chief Ken Barclay.
But yesterday he revealed he had rejected their calls. Confirming the move, he said: ‘We will accept the remaining Barclay recommendations almost entirely, except those on a charity relief, which we do not intend to curtail for universities or council arm’s length organisations’.
Opponents claimed that Mr Mackay’s decision was a ‘blatant attack’ on private schools that would make them ‘more elitist and less accessible’.
Scottish Conservative education spokesman Liz Smith said: ‘This is a blatant attack on the independent school sector which has clearly not been thought through by the SNP, both in terms of the financial repercussions for the state sector and the application of the current charity test which was agreed by all parties in the Scottish parliament.
‘For a party that is supposed to be in favour of widening access, this move will make independent schools more elitist and less accessible to those from poorer backgrounds.
‘That will be met with dismay by those parents whose sons and daughters have been in receipt of increasingly generous bursary support.’
It is understood the change to private school rates will not be enforced for up to three years, as it will require a change in primary legislation which must go through
‘A backwards step, pure and simple’
parliament. The change will not affect special schools.
The SCIS has previously claimed it would not rule out legal action if Mr Mackay did enforce rates on them – and last night said it would be considering the proposals.
SCIS director John Edward said: ‘For mainstream schools the announcement today is, pure and simple, a backwards step by the Scottish Government – taken against advice and evidence from many quarters.
‘We will consider the proposed new arrangements. If followed through, this proposal will weaken and narrow the widening access programme and, most importantly, it will impact on those accessing bursary assistance made possible by the reduced rates level.
‘It is dispiriting the Government considers independent schools and their parents alone are deserving of a targeted five-fold rates rise.’
Mr Mackay also used his Budget to confirm that he will follow the Chancellor’s lead and base future rises on the lower Consumer Price Index inflation measure rather than on the Retail Price Index.
Chancellor Philip Hammond introduced the measure in his UK Budget last month, which will mean rates will increase by 3 per cent in April rather than 4 per cent.
Mr Mackay also confirmed he will extend a business rate cap for offices in Aberdeen City and Aberdeenshire. The cap was introduced last year after the first revaluation in seven years saw thousands of firms face rises up to 400 per cent.