Welsh Government propose end to 'tax-break' for private schools

The Welsh Government has unveiled plans to end a so-called 'tax-break' in fee-paying schools from April next year.

A consultation has been launched on the proposals to withdraw charitable non-domestic rates relief from private schools.

Non-domestic rates relief is effectively a reduction in business rates for charitable organisations.

The Welsh Government have ear-marked the funding raised by ending this tax relief to support local public services.

Finance Secretary Mark Drakeford said: “We believe that independent schools with charitable status in Wales should be treated in the same way as those which are not charities, which is why we are proposing removing this tax relief.

“It would bring Wales into line with Scotland and the UK Government is also planning to make similar changes in England.”

In Wales, private schools are registered as independent schools, of which there are 83 across the country.

17 of these receive charitable non-domestic rates relief, which is worth around £1.3m every year.

The consultation sets out the Welsh Government’s proposal and asks for views. It will run for 12 weeks from 23 September and responses are requested by 16 December 2024.

Responding to a consultation launch Tom Giffard MS, Welsh Conservative Shadow Education Minister, said:

“Labour’s focus on private schools is a bias that will ultimately cost the taxpayer in the long run.

“With parents pulling their children out of private schools and placing them into an already overwhelmed state school system, not only will it cost the taxpayer more, it will increase class sizes and heap more pressure on the hard working teaching staff.

“Labour’s short-sighted thinking reflects their wider ineptitude with the economy, the Welsh Conservatives will always prioritise our children’s education and appropriately fund our schools.”

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