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Business rates and private schools

17 replies

Perplexed20 · 13/06/2024 12:30

I hadn't realised that private schools only pay 20% of business rates due to their charitable status. State schools pay 100%.

Did you know this?

Yabu = everyone knows this
Yanbu = no, didn't know.

OP posts:
Didimum · 13/06/2024 12:32

They didn't have to pay interest on loans during Covid either – which state school had to.

Perplexed20 · 13/06/2024 12:35

Thats just terrible. Effectively the state is subsidising private schools, then.

I wonder how much it has cost?

OP posts:
mylifestory · 13/06/2024 18:42

Didimum · 13/06/2024 12:32

They didn't have to pay interest on loans during Covid either – which state school had to.

where did you get this info from? why wd they have loans in covid times anyway. methinks this is made up!

Spirallingdownwards · 13/06/2024 18:43

Perplexed20 · 13/06/2024 12:35

Thats just terrible. Effectively the state is subsidising private schools, then.

I wonder how much it has cost?

Don't be ridiculous.

Perplexed20 · 13/06/2024 19:05

Spirallingdownwards · 13/06/2024 18:43

Don't be ridiculous.

Why is it ridiculous, specifically?
If the cost is 100% and the private school is paying 20%, who pays the difference?

OP posts:
Perplexed20 · 13/06/2024 19:06

mylifestory · 13/06/2024 18:42

where did you get this info from? why wd they have loans in covid times anyway. methinks this is made up!

https://www.opendemocracy.net/en/dark-money-investigations/conservatives-private-schools-157m-government-subsidised-loans/

OP posts:
Perplexed20 · 13/06/2024 19:07

I just googled it so definitely not made up. Multiple sources.

OP posts:
Oblahdeeoblahdoe · 13/06/2024 19:14

Just another example of this corrupt government

roses2 · 13/06/2024 19:21

Didimum · 13/06/2024 12:32

They didn't have to pay interest on loans during Covid either – which state school had to.

Why were private schools taking out covid loans in the first place given all the children still had to pay full fees??

Another76543 · 13/06/2024 19:21

Are you aware that only half of private schools have charitable status? Are you also aware of the business rates arrangements of state schools? The state sector as a whole is treated more favourably for business rates than the private sector.

Perplexed20 · 13/06/2024 22:10

Another76543 · 13/06/2024 19:21

Are you aware that only half of private schools have charitable status? Are you also aware of the business rates arrangements of state schools? The state sector as a whole is treated more favourably for business rates than the private sector.

Yes I was a Chair of Governors of a maintained school until a couple of years ago. What do you want to know?

OP posts:
DdraigGoch · 13/06/2024 22:15

Business rates for state organisations are just money going around in circles. One branch of the state paying another branch of the state. If they didn't have to pay them, it wouldn't mean extra money for the school, the budget would just be reduced to match.

Another76543 · 13/06/2024 22:17

Perplexed20 · 13/06/2024 22:10

Yes I was a Chair of Governors of a maintained school until a couple of years ago. What do you want to know?

You’ll know then that state maintained schools don’t pay business rates, which isn’t what your OP said.

“The Education and Skills Funding Agency (ESFA), which is part of the Department for Education (DfE), pays NNDR bills directly to billing authorities that are on the central system on behalf of local authority maintained schools and academies”

https://www.gov.uk/government/publications/national-non-domestic-rates-guidance-for-billing-authorities/change-to-the-business-rates-payment-process-for-schools-guidance-for-billing-authorities

https://www.theyworkforyou.com/wrans/?id=2022-03-22.145043.h

Change to the business rates payment process for schools: guidance for billing authorities

https://www.gov.uk/government/publications/national-non-domestic-rates-guidance-for-billing-authorities/change-to-the-business-rates-payment-process-for-schools-guidance-for-billing-authorities

Perplexed20 · 14/06/2024 08:05

Actually they do pay business rates, its just paid directly. Its still in the funding formula. Its just the administration that's changed.
You'd know that though, wouldn't you.

https://democracy.havering.gov.uk/documents/s55020/Item%2011%20School%20Business%20Rates%202022-23.pdf

https://democracy.havering.gov.uk/documents/s55020/Item%2011%20School%20Business%20Rates%202022-23.pdf

OP posts:
Another76543 · 14/06/2024 09:05

Perplexed20 · 14/06/2024 08:05

Actually they do pay business rates, its just paid directly. Its still in the funding formula. Its just the administration that's changed.
You'd know that though, wouldn't you.

https://democracy.havering.gov.uk/documents/s55020/Item%2011%20School%20Business%20Rates%202022-23.pdf

Business rates are paid on behalf of maintained schools by central government. Currently, 80% mandatory rates relief is applied to academies, voluntary-aided schools and foundation schools. 82% of secondary schools fall under this category. They are treated in the same way as private schools which have charitable status. The half of private schools without charitable status do not receive relief. To start a thread suggesting that state schools pay more business rates than private schools is disingenuous at best.

Rescuereivers · 14/06/2024 09:09

DdraigGoch · 13/06/2024 22:15

Business rates for state organisations are just money going around in circles. One branch of the state paying another branch of the state. If they didn't have to pay them, it wouldn't mean extra money for the school, the budget would just be reduced to match.

This! How could any grown adult not understand this?

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