Scotland has delayed a move to make private schools pay full business rates because of Covid-19.
Independent schools, which currently pay a fifth of the normal amount but were due to pay full rates as of this autumn, have welcomed the Scottish government’s decision to defer the introduction until next April.
The decision was made to help alleviate some of the financial pressures on private schools, which, like almost every other business in the UK and elsewhere, have been battered by the coronavirus crisis.
The Scottish government said: “This decision was taken to assist mainstream independent schools as they – like all businesses in Scotland – deal with the impacts of Covid-19.”
Whether private schools should be subject to taxes such as VAT and business rates has long been debated in the UK, where most independent schools are owned by charitable trusts and thus get favourable tax breaks.
Some private schools in Scotland had warned that, if they were forced to pay full business rates, they may have to close permanently.
John Edward, director of the Scottish Council for Independent Schools, said: “Independent schools are no different to any other not-for-profit body facing this unprecedented health crisis.
“This temporary measure will go some way towards keeping teachers and support staff in employment, maintaining Scottish and international children in world-class education, and avoiding any additional placing pressure on local authorities at this most difficult time.
“That the schools, uniquely, still face a five-fold tax rise in the coming academic year is still hugely problematic and reduces their capacity for public benefit – some innovative forms of which have been displayed throughout the lockdown.”