The Welsh Labour government has announced plans to revoke the charitable status of private schools, a move expected to significantly impact the educational landscape in Wales.
- The change would require these schools to pay domestic rates, projected to generate an additional £1.3 million annually.
- This proposal aligns with UK-wide plans to impose VAT on private school fees, potentially affecting private school enrolment rates.
- Critics argue that the policy could overwhelm the state school system and increase costs for taxpayers.
- A 12-week consultation period on the proposed changes will run until December 16.
Welsh Labour has proposed revoking the charitable status of private schools, requiring them to pay domestic rates. This move is expected to generate an additional £1.3 million annually. Welsh finance secretary Mark Drakeford argues that the change will align Wales with Scotland, which removed charitable status for private schools in 2022, and plans in England.
Currently, 17 out of 83 private schools in Wales benefit from charitable non-domestic rates relief. According to Drakeford, this creates an unfair advantage. He stated, ‘We believe that independent schools with charitable status in Wales should be treated in the same way as those which are not charities,’ emphasising that the proposal aims to redirect funds into local services.
Concerns have been raised that these tax changes, together with Sir Keir Starmer’s planned VAT on private school fees, could lead to a significant drop in private school enrolment. A report from the Saltus Wealth Index revealed that nearly 23% of parents might withdraw their children from private education, potentially shifting 140,000 children into state schools across England and Wales.
Critics argue that this could overwhelm the already strained state school system and lead to increased costs for taxpayers. Tom Giffard, Welsh Conservative shadow education minister, criticised the proposals as short-sighted, warning that increased class sizes and additional pressure on teaching staff would be inevitable outcomes.
The Welsh government’s consultation on removing charitable status for private schools will run for 12 weeks, concluding on December 16. This period will allow for public and stakeholder input regarding the proposed changes.
The proposed tax changes to private schools in Wales have sparked debate, with significant implications for the educational sector.
