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Finance and Constitution Committee Non-Domestic REF NO. FCC/S5/19/NDR/174 FINANCE AND CONSTITUTION COMMITTEE NON-DOMESTIC RATES (SCOTLAND) BILL FM SUBMISSION FROM THE GLASGOW ACADEMY The Glasgow Academy The Glasgow Academy, founded in 1845, is the oldest continuously independent school in the city. Currently, we guide over 1,400 children a year through their educational career from ages 3-18. The Academy relocated to Colebrooke Street in 1878, having previously been based at Elmbank Street in the Charing Cross area of the city. The Academy expanded on its Kelvinbridge site with a new science block in 1903, the gradual purchase of the former residential homes which form Colebrooke Terrace from 1924, the construction of various new buildings, including the Carghill Hall (1957), Music School (1994), a new Prep School (2008) and the award-winning science and technology building, The Saunders Centre (2015). In 1991, The Glasgow Academy merged with Westbourne Schools for Girls and became fully co-educational. The Academy is principally located at Kelvinbridge but we also run two satellite schools for Nursery, Kindergarten and P1-4 pupils in Milngavie and Newlands. We put a particular emphasis on our early years and preparatory provision of which over half of our pupils are currently enrolled. Our footprint across the city –north, south and west - means that we can service children from across the Greater Glasgow area. Non-Domestic Rates (Scotland) Bill We welcome the opportunity to respond to the Finance and Constitution Committee’s call for written evidence regarding the Financiel Memorandum associated with the Non- Domestic Rates (Scotland) Bill. Although disappointed, we note the changes outlined in the Bill which proposes to remove charitable relief from independent schools apart from schools of which pupils are selected based on music ability or potential or developing musical excellence or a “special school” which caters for pupils who require Additional Support for Learning. Some are arguing for the removal of discretionary reduction in business rates enjoyed by independent schools in order to bring them in line with local educational authorities. While local education authority schools notionally pay business rates this is taken directly from core funding from government. Independent schools on the other hand do not receive any funding from the government except when working in partnership with the state. Those arguing for the removal of discretionary reduction in business rates for independent schools are doing so without recognising the opportunity cost in terms of loss of investment in education. Independent schools are being uniquely targeted as charities due to a REF NO. FCC/S5/19/NDR/174 perception of their relative ability to pay. The consequence of increased costs to the sector via tax is to reduce the funds available to provide: 1) the best education experience in the school community; 2) expand the provision of supported places; 3) limit the abilities of independent schools to work in partnership with local education authorities to provide access to facilitate a curriculum that is hard to provide universally in the state sector. We are concerned that independent schools are just one small group of charities that been selected over all the others. Of the 24,274 Scottish charities only independent schools are the focus of attention. We would wish to know why this is the case. Universities, for example are structurally very similar to our schools. Like us, universities are fee-charging independent charities, and like theirs, our core purpose is the provision of education. This proposal makes an arbitrary distinction between schools, universities and other educational charities, thereby calling into question the consistency between charity law and creating discrete and discriminatory, rather than level, playing fields. We have been scrutinised intensely by OSCR over more than 10 years, more thoroughly with greater publicity than any other sector. We have passed the OSCR’s Charities Test, so we now struggle to understand why this proposal wishes to challenge the results of this highly professional process by singling out independent schools this way. Since our inception our core purpose has been to operate as an educational charity. As we operate on a not-for-profit basis, any operating surplus we acquire is reinvested into the school through our pupils, staff and facilities. A significant sum of our surplus is reinvested into providing bursaries for children to attend the Academy. Total means-tested bursaries awarded in the academic year 2018/19 amounted to £920,000. At The Glasgow Academy we work with educational authorities in Glasgow through partnership working which includes supporting the provision of early years education; providing access to higher classes in subjects where there is a shortage of provision in local authority schools; and opening up the use of the school’s facilities. To conclude, the removal of discretionary reduction in business rates will impact on our ability to provide shared services with local education authorities and award bursaries to attend the Academy in future. With this in mind we would warn against future legislative changes that decrease our operating surplus and prevent us from reinvesting into the school. REF NO. FCC/S5/19/NDR/174 Finance and Constitution Committee Questionnaire This questionnaire is being sent to those organisations that have an interest in, or which may be affected by the Non-Domestic Rateshttps://www.parliament.scot/parliamentarybusiness/Bills/111337.aspx (Scotland) Bill FM. In addition to the questions below, please add any other comments you may have which would assist the Committee’s scrutiny of the FM. Consultation 1. Did you take part in any consultation exercise preceding the Bill and, if so, did you comment on the financial assumptions made? - No 2. If applicable, do you believe your comments on the financial assumptions have been accurately reflected in the FM? 3. Did you have sufficient time to contribute to the consultation exercise? Costs 4. If the Bill has any financial implications for your organisation, do you believe that they have been accurately reflected in the FM? If not, please provide details. - Yes 5. Do you consider that the estimated costs and savings set out in the FM are reasonable and accurate? 6. If applicable, are you content that your organisation can meet any financial costs that it might incur as a result of the Bill? If not, how do you think these costs should be met? Our school can meet the additional financial costs if we maintain our current pupil numbers. However, it will create a negative impact on the funds available that we would ordinarily re-invest in our pupils, staff and facilities – including means-tested bursaries. 7. Does the FM accurately reflect the margins of uncertainty associated with the Bill’s estimated costs and with the timescales over which they would be expected to arise? Wider Issues REF NO. FCC/S5/19/NDR/174 8. Do you believe that the FM reasonably captures any costs associated with the Bill? If not, which other costs might be incurred and by whom? 9. Do you believe that there may be future costs associated with the Bill, for example through subordinate legislation? If so, is it possible to quantify these costs?.
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