News

Private schools face ‘serious consequences’ from rates blow

A proposal to end charitable relief on business rates for independent schools risks forcing 6,000 pupils into the state sector, it is claimed. Sam Phipps reports

Scotland’s independent schools have warned the government that a proposal to increase bills on their business rates up to fivefold will make them “more elitist” by squeezing bursaries, as well as costing taxpayers heavily by forcing more pupils into the state sector.

A review by former Royal Bank of Scotland chair Ken Barclay, commissioned by the government, recommended ending charitable relief on business rates for independent schools from April 2020, in the interests of fairness.

They typically pay about 20 per cent of the total levy at the moment, whereas state schools are liable for the full amount.

However, private schools have been surprised by the announcement, saying they have worked hard in recent years to welcome more pupils from poorer backgrounds and make their facilities more available to local communities.

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