Cynon Valley AM backs proposals for tax fairness

Local Assembly Member Vikki Howells has welcomed moves towards ending the tax advantages of charitable status for private schools and hospitals.

The proposals have been outlined by Welsh Government Finance Minister Rebecca Evans, and follows on from an announcement that the Welsh Government would be consulting on proposals to place independent schools and private hospitals on an equal footing with their public sector counterparts in respect of the payment of non-domestic rates.

The consultation will consider removing charitable rate relief from private schools and private hospitals where they are registered as charities. At present, some private schools may not pay any rates at all.

State schools and hospitals, like other ratepayers, are obliged to pay non-domestic rates and do not receive this benefit.

The Cynon Valley AM had previously conducted research into the tax status of private schools. Ending the status of just seven schools across three local authorities would end relief of over £1 million.

Vikki Howells AM said:-

“This is about basic fairness, treating state and private schools in the same way when it comes to tax.

“The current system is frankly unfair – under 2% of Welsh pupils are educated in independent schools, which get this boost other schools do not enjoy.

“The Welsh Labour Government are absolutely right to look at this and I thank the Minister for her clarity.”