Jack Grimston
Win tickets to the ATP finals
SOME independent schools may voluntarily give up charitable status to escape the threat of “hostile voices” and “sabre-rattling” by regulators at the Charity Commission.
Schools exploring the move believe it would have only a limited impact on their finances and would free them from rules that could prove intrusive and bureaucratic.
From next year the presumption that all education is charitable and so can enjoy tax breaks will end. Instead, schools will have to prove they provide a “public benefit”, for example, access for poor families.
Many head teachers have complained at what they see as threats from some Charity Commission executives.
“Someone, somewhere [in the Charity Commission] has got an antiindependent school agenda,” said Bernard Trafford, chairman of the Headmasters’ & Headmistresses’ Conference, which represents more than 250 independent schools.
Trafford, headmaster of Wolverhampton grammar school, said that while abandoning charitable status would “go against our heart”, the possibility was now being considered by his school and others.
“A lot of us will explore this option now these kind of crazy, hostile voices are being floated again,” he said.
Rosie Chapman, executive director of policy and effectiveness at the commission, has said it could freeze bank accounts and “go nuclear” against schools that fail to meet the public benefit test.
Steps being taken by schools to prove public benefit include increasing bursaries for pupils from poorer families and opening sports facilities. Moves such as sponsoring city academies are also being explored. Lord Adonis, the schools minister, will use a speech next week to the Girls’ Schools Association of independent schools to promote academies.
Charitable status brings independent schools an estimated £100m in tax breaks a year.
But schools have been advised that if they turn themselves into companies, Vat could not under European law be imposed on school fees. They have estimated that the other tax benefits of charitable status could be replaced by a fee increase of 2.7%-5%.
Chris Woodhead, the Sunday Times columnist who chairs the education firm Cognita, said he was in discussions to acquire a number of schools worried about whether they could survive as independent charities under the law.
He said: “If the public benefit test means, as it seems it will, that [charity] schools have to devote more and more time and resources to propping up state schools, what does that mean for the education of their own children and how will their parents react?”
Andrew Hind, chief executive of the Charity Commission, said: “The public benefit requirement is not something any charity should fear. It is an opportunity for charities to articulate even more clearly the value they bring.”
Apply to become a journalist at one of the world's top news organisations
Industry sectors news at a glance. Interactive heatmap, video and podcast
Everything the Business Traveller needs to know to make a better trip
Get ready for the winter sports season, with our resort guides and snow reports
We are backing British business, what is the confidence of the nation and what businesses are succeeding?
Growing demand for energy, oil that is harder to reach and the rise of carbon dioxide emissions. We examine the energy challenge
Enjoy further reading from Travel to Fashion, Business to Sport, discover more
Shortcuts to help you find sections and articles
36-month car lease
on contract hire for
£359.99 plus VAT pm
12 months for the price of 11 and a 5% discount.
Offer ends 31/11/09
The UK's leading alternative to showroom finance.
Finance packages tailored to your needs.
Minimum loan of £15,000
Car Insurance
£12,578 per annum
The Independent Housing Ombudsman
London
Competitive
Barclaycard
Not Specified
The Sheppard Trust
London
£80-95,000
Clay McGuire Executive Selection
Moments from Battersea Park.
For sale with Winkworth.
See your free Experian credit report beforehand
Book now & save over £100pp.
11 cool resorts, lowest prices... Early Booking offers 15 Nov.
20% off selected Azores holidays taken in October with Sunvil Discovery
Get covered on your travels with a superb range of policies at great prices. Visit InsureandGo.com
World Class Golf, Spa and preferential Beach Club. Private estate overlooking West Coast
Villas from £275 per night inclusive of Golf
Contact our advertising team for advertising and sponsorship in Times Online, The Times and The Sunday Times, or place your advertisement.
Times Online Services: Dating | Jobs | Property Search | Used Cars | Holidays | Births, Marriages, Deaths | Subscriptions | E-paper
News International associated websites: Globrix Property Search | Milkround
Copyright 2009 Times Newspapers Ltd.
This service is provided on Times Newspapers' standard Terms and Conditions. Please read our Privacy Policy.To inquire about a licence to reproduce material from Times Online, The Times or The Sunday Times, click here.This website is published by a member of the News International Group. News International Limited, 1 Virginia St, London E98 1XY, is the holding company for the News International group and is registered in England No 81701. VAT number GB 243 8054 69.