PRIVATE schools will lose their eligibility for rates relief, Derek Mackay has confirmed.
In August, the Barclay Review recommended that the Scottish Government end the “inequality” between independent and state schools by ensuring fee-paying establishments are also charged rates.
Until now, private schools, which have charitable status, have qualified for a reduction or exemption from rates faced by council-run establishments.
Yesterday the Finance Secretary confirmed this will now change, with special schools retaining the eligibility. However, their charitable status will not be affected.
He said: “In essence, independent schools, other than those that I have mentioned, should be treated in the same way as council schools.”
Mackay went on: “We have taken the right, sensitive decisions in that regard and, as I understand it, they will have no negative effect on the schools’ charitable status. What we choose to do with regard to non-domestic rates is absolutely fair and consistent.”
Scottish Conservative shadow education secretary Liz Smith hit out at the news, saying: “This is 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 supposedly 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.”
The Barclay Review said: “Independent (private) schools that are charities also benefit from reduced or zero rates bills, whereas council (state) schools do not qualify and generally will pay rates. This is unfair and that inequality should end by removing eligibility for charity relief from all independent schools. They will of course still retain charitable status and other benefits will continue to flow to them from that status.”
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