The Courier & Advertiser (Angus and Dundee)
Independent schools rates plan ‘makes no sense’
Finance Secretary Derek Mackay’s plan to force independent schools to pay business rates has been branded a “counter-productive attack” by a Dundee head teacher.
Mr Mackay stripped private institutions of charitable relief from the property-based tax in his draft Budget.
Dundee High School rector Dr John Halliday said the plan, which would kick in by 2021, “drives a coach and horses” through regulator guidelines and makes “no economic sense” because it will cost the state more than it brings in.
“If the proposal goes through as planned it represents an ill-thoughtthrough and counter-productive attack on schools such as the High School of Dundee,” he said.
“We give out nearly £1m annually in means-tested fee relief to enable pupils to come to us from all backgrounds – 20% of our secondary pupils receive this relief.
“Our facilities are heavily used by the community, some 1,900 people every week, in addition to our pupils.”
Mr Mackay told Holyrood he would accept the recent Barclay Review of the business rates system, ”almost entirely except on charity relief, which we don’t intend to curtail for universities or council ALEOS (Arm’s Length External Organisations)”.
The draft Budget document for 2018/19 added: “This acceptance includes the removal of charity relief eligibility for independent schools from 2020-21, excluding special schools.”
Mr Mackay has also scrapped Scottish stamp duty for first-time buyers on homes up to £175,000, which experts have called “disappointing”.
It follows the move by Chancellor Philip Hammond to abolish stamp duty on homes under £300,000 for first-time buyers in the rest of the UK.
Hew Edgar, Scotland policy manager for the Royal Institution of Chartered Surveyors (RICS), said it is “not the answer to stimulate activity in the Scottish housing market, making today’s announcement disappointing”.
“Whilst this change has potential to stimulate activity in the short term, it comes at a time when the market is subdued, and does not tackle the overarching problem of housing shortage supply across all tenures.”
But Nicola Barclay, chief executive of industry body Homes for Scotland, said the move could be “a valuable boost for those aspiring to get on the property ladder, representing additional money towards their deposit or moving costs”.
Scottish Chambers of Commerce expressed concerns about tax rises but welcomed the budget for increasing spending on research and development, housebuilding, broadband connectivity and the National Manufacturing Institute of Scotland.
The SNP administration’s Budget pledged a further £600m to provide superfast broadband to all premises in Scotland by 2021.
Fergus Ewing, the rural economy secretary, said: “This is the biggest public investment ever made in a UK broadband project.
Education secretary John Swinney hailed funding increases for childcare expansions and closing the attainment gap.
Colleges Scotland’s Shona Struthers said: “Finances will continue to be tight and colleges will have to carefully consider how to make the best use of the resources available for the coming year.”