PRIVATE schools do not deserve the charitable status that brings them huge financial benefits, according to the head of a prestigious independent school.

Tim Hands, head of pound;6,700-a-year Portsmouth grammar, said that the independent sector could not justify its charitable status.

“It is a product of the 19th century. We do not actually deserve it,” he told a conference of private-school heads last week in Brighton.

Old boys of Portsmouth grammar include athlete Roger Black, Shogun author James Clavell and Viagra researcher Ian Osterloh.

The co-ed school, whose motto is “honours are the rewards of virtue”, was founded in 1732. It shares its facilities, sponsorship and expertise with local organisations, a policy supported by the Government.

Dr Hands’ comments come as a report is being prepared for Tony Blair on schools’ charitable status. The report, by the Government’s performance and innovation unit, is expected to tell schools to put more back into the community.

They will not lose their charitable status, but will have to show some public benefit to justify it. Schools will have to do more community partnership work and appeal to a broader range of people.

But Dr Hands’ views were not universally shared. Edward Gould, chairman of the Headmasters’ and Headmistresses’ Conference, said: “Education has for centuries been considered a charitable activity.”

Priscilla Chadwick, principal of Berkhamsted collegiate school, Hertfordshire, said many schools served their communities. Her school’s concert hall is used as the town’s main venue.

She said: “Many of our children will be working in the community, and we run a club for young people with learning difficulties. These are the sorts of things that a lot of schools do and they are a very important part of giving back to the community.”

Anthony Seldon of Brighton College said co-operation between the two sectors would evolve over the next 10 years. “We can share teachers, good practice and initiatives.”

Schemes already in place at some private schools include making sports facilities available to the public, running summer schools for local children, charitable work and fund-raising.

Dr Hands warned private schools should be more worried if Gordon Brown became prime minister.

Charitable status saves private schools an estimated pound;83 million in taxes each year.