Yahoo News Independent schools hit out at SNP Finance Minister over letter to John Swinney about rates bill hike
Scotland's independent schools has hit out at the SNP's Finance Minister after he advised they could try contacting councils for help getting round his £5 million tax raid on private education.
The Scottish Council of Independent Schools (SCIS) criticised Derek Mackay after he refused to offer Kilgraston School in Perthshire any assistance and told it to contact the local council instead for rates relief.
John Swinney, the Education Minister, also came under fire after it emerged that he contacted Mr Mackay on behalf of Kilgraston School, which is in his constituency.
The Scottish Government issued a statement insisting that Mr Swinney "fully supports" his Cabinet colleague's decision his decision to end business rates charity relief for private schools.
But Labour's Iain Gray said Mr Swinney had lobbied for tax breaks for the independent sector despite having "hammered budgets" for state schools when he was Finance Minister.
Dorothy MacGinty, the headteacher of the all-girls boarding school in Bridge of Earn, accused Mr Mackay of "passing the buck" to councils.
The Tories said the tax change was now shrouded in "total confusion", with the prospect of a postcode lottery caused by some councils providing relief and others refusing.
Private schools have warned that hiking their tax bills will drive up fees, making independent education too expensive for many parents.
John Edward, the SCIS director, argued the Finance Minister should remove the "inequality" caused by scrapping the tax break for institutions that have charitable status.
Mr Edward, whose organisation represents more than 70 schools, told the Daily Telegraph that the "real question" for Mr Mackay was whether "he believes in Scotland's competitive edge."
He asked: "Why not leave all registered charities alone and subject to the OSCR?"
Mr Edward argued the minister would be better off removing the anomaly of state schools paying rates to their own councils.
"That way everyone can get on with doing their best and no further money is taken out of the system," he added.
People across Scotland will be bemused that John Swinney, the Finance Secretary who hammered budgets for local schools, is now lobbying for tax breaks for private schools as Education Secretary
Iain Gray, Scottish Labour education spokesman
Mr Swinney, the MSP for Perthshire North, wrote to Mr Mackay after being contacted by Thomas Steuart Fotheringham, a governor at Kilgraston.
In his reply, the Finance Minister suggested that private schools could make use of council powers to give rates relief locally.
He concluded: "Mr Steuart Fotheringham may wish to approach the council to request that they explore all avenues open to them to support his arguments and I emphasise that it is incumbent on the council to give any such request proper and full consideration.”
The Finance Minister also said he appreciated Mr Swinney would want to “keep a close eye” on the subject “given your dual role as a constituency MSP as well as Cabinet Secretary for Education and Skills”.
But Mr Gray, Scottish Labour's education spokesman, said: "People across Scotland will be bemused that John Swinney, the Finance Secretary who hammered budgets for local schools, is now lobbying for tax breaks for private schools as Education Secretary.
"Local councils seen £1.5billion of cuts under the SNP government - they need help to fund local schools properly, not for the government to suggest they fund tax breaks for private schools.
Mrs MacGinty told the Scotsman, which obtained the letter: “It is almost as if they are passing the buck. They are going to make this headline statement which garners great favour among the general population who don’t send their children to independent schools.
"But at the same time they are saying actually we’ll just pass it on to the local council and let them deal with it when they are already putting them under pressure.”
Liz Smith, the Scottish Tories' Shadow Education Minister, said: "There now appears to be total confusion in the SNP ranks about the party’s proposal to end business rates relief for independent schools.
“On the one hand Derek Mackay claims the Scottish Government will use legislation to end business rates relief for independent schools but then, when pressed on the matter by his own colleagues, he says it will be up to councils to decide whether or not to apply the policy."
A Scottish Government spokesman said: "Mr Swinney was fulfilling his obligation to raise an issue on behalf of his constituents, which is his duty to do so.
“The Finance Secretary simply and plainly explained the law around business rates which includes a separate provision that gives democratically elected local authorities wide ranging flexibility to introduce any new rates reliefs to reflect local needs should they wish to do so."
