The headteachers of small independent schools that cater for children with complex additional support needs are warning that their very existence will be under threat if Scotland’s private schools are forced to pay business rates in full.
There are around 20 small private schools for children with complex additional support needs who fail to thrive in the state sector. Most of these schools are charities and they fear that pupils’ wellbeing may now suffer because of a landmark change on rates.
Many of these pupils have been out of education for months - if not years - by the time councils decide to fund a place, according to the leaders of two Perthshire schools. Ochil Tower School and the New School fear that any rise in business rates would mean a rise in fees, placing at risk their future and those of the children they work with.
The schools’ comments come after last week’s publication of the Barclay Review of Non-Domestic Rates by former RBS chairman Ken Barclay, which suggested that independent schools should pay business rates in full because state schools were subject to the charges and it was “unfair” that, as charities, independent schools benefitted from “reduced or zero-rates bills”. It estimated that removing the rate relief could save £5 million.
However, independent schools immediately hit out, saying that this would put them at a “global disadvantage”. One head described the move as “vindictive and utterly counterproductive” (see box, left). The two Perthshire schools for children with complex needs believe that those backing the introduction of the charges - a move which appears to have widespread public support - are failing to take into account schools like theirs.
‘Crisis’ for families
Neil Snellgrove, head of education at Ochil Tower, said it was under immense pressure “just to exist” due to council budget cuts, and if it was forced to close parents would be left in crisis, families would be at risk of breakdown and pupils would not have their needs met. He added: “Any additional costs will have to be met. The most likely scenario is it becomes more and more difficult to get children into a facility like ours because it costs more.”
Chris Holmes, head of the New School, said: “As local authority budgets have been squeezed, children who require our kind of approach have been put to the back of the queue because it’s more expensive. Anything that increases the fees is going to push local government closer to withdrawing the child from a placement, and for the child that means they probably won’t get an education.”
A better way to level the playing field on business rates would be to make state schools exempt, suggested John Edward, director of the Scottish Council of Independent Schools.
The EIS teaching union has also called for state schools to be exempt. General secretary Larry Flanagan said: “It’s clearly unfair if private sector schools get rates relief and local authority schools don’t. Local authority schools should get the same rates relief so there’s additional funding there to spend on education.” Similarly, Jim Thewliss, general secretary of School Leaders Scotland, said either all schools should pay rates, or none.
The charitable status of independent schools has been a contentious issue for years.
An eight-year inquiry by the Office of the Scottish Charity Regulator gave them the green light to keep the status back in 2014, but that same year an ultimately unsuccessful petition was lodged with the Scottish Parliament calling for charitable status to be removed; the petitioner said “private schools [represent] the perpetuation and condoning of profound social injustice”.
Despite the OSCR verdict, the schools still have work to do to convince the public they should have charitable status and the benefits it brings. One teacher on Twitter responded to the news that business rates exemption could be withdrawn by saying: “Good, and while they’re about it, how about removing charitable status?” Another said that private schools should be abolished.
A Tes Scotland Twitter poll of 222 people showed that 74 per cent were in favour of independent schools paying rates in full.
Derek Mackay, the Scottish finance secretary, welcomed the Barclay report. He said that the review group had spent more than a year engaging closely with ratepayers and that the government would “respond swiftly to its recommendations”.
