FCC/S5/19/NDR/134 FINANCE AND CONSTITUTION COMMITTEE NON-DOMESTIC RATES (SCOTLAND) BILL FM SUBMISSION FROM HIGH SCHOOL OF DUNDEE Consultation 1. Did you take part in any consultation exercise preceding the Bill and, if so, did you comment on the financial assumptions made? Yes I did. I wished to express my vigorous objection to the proposal in Section 10, namely the abolition of charitable rates relief for independent schools. I commented that the whole premise of this proposal, including the financial assumptions, was unfair, counterproductive and financially self-defeating. 2. If applicable, do you believe your comments on the financial assumptions have been accurately reflected in the FM? No, they have not been considered at all. 3. Did you have sufficient time to contribute to the consultation exercise? Yes. 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. No, they do not. Not at all! This move will cost the school approximately an additional £250-280k per year. This five fold increase in our rates at one fell swoop is a massive amount for the school to digest. But it is a drop in the ocean for the state coffers. The High School of Dundee has been a charity since 1897. It has as its purpose “the advancement of education”, and this has been recognised and completely endorsed by the Office of the Scottish Charities Regulator (OSCR). Each year we give out nearly £1mill in means tested financial support. This will seriously impact on our ability to widen access. At one fell swoop it obliterates any surplus for development. The impact has been grossly underestimated by the FM and the Bill itself. This is a very cavalier and ill-informed proposal and the impact will end up costing the Scottish people, not saving money. 5. Do you consider that the estimated costs and savings set out in the FM are reasonable and accurate? 1 FCC/S5/19/NDR/134 No, they ignore a number of important cost factors and they will inevitably have a number of negative unintended consequences. The High School of Dundee saves the state £7million per year by educating over 1000 children. If just one single school out of the 56 Scottish ‘mainstream’ independent schools were to close as a result of this misguided tax, this would almost immediately wipe out the claimed £7mill that the government states it would collect in extra rates taxation. The school’s history is entwined with that of Dundee, Tayside and the nation. The school gives back a huge amount to the community. We employ over 200 staff. They and their wider families contribute substantially to the local economy and send children to various schools, not just the High School of Dundee. Our staff are involved in a wide range of local organisations, many charitable. What would the cost be to society if they were not there to run sports clubs, help with scouts, guides, other youth groups and local charities? Our teachers (and the school as an employer) contribute a huge amount to the Scottish Teachers’ Superannuation Scheme. Who will make up the annual £1.2mill shortfall in state pension contributions if we or another school were not here??? We employ numerous contractors and suppliers, whose livelihoods would be affected by this tax. Who would pick up the slack when we are not here? Who would provide employment? What is the cost in terms of reduced income tax and VAT from these contractors and suppliers? Our school teaches Economics and Latin, two subjects which are virtually non- existent in state schools. Who will pick up the shortfall when these key subjects decline? Many of our teachers are involved with the SQA on all levels from exam setting to marking. Who will find and pay for their replacements if they disappear? Our pupils and staff are engaged in a huge range of community and charitable activities, raising over £40,000 last year for local, national and international charities. Who will pick up the costs instead? Who will help with the Dundee Disabled Children Trust and the numerous other charities our pupils are involved in? 2 FCC/S5/19/NDR/134 Our sports, musical and other facilities are widely used by local groups, some free of charge, some at cost, some for a small surplus. Approximately 1,900 people from outwith the school use our facilities every week. Where will they go if we are not here and what would be the additional cost to the state? Currently we host: National Youth Choir of Scotland, Dundee Symphony Orchestra, Dundee Choral Union, ClIC Sargent Choir, ABRSM, Rotary (Interact), Dundee Wanderers (Hockey), FGFM Monarchs (Hockey), Abertay University (Basketball, Netball), Polonia Volleyball, Grove Menzieshill (Hockey), Basketball Scotland, Country Dancing, Dundee Dodgers, Mayfield Yoga, Mayfield Pilates, Tribe Cheerleading, 2 Zumba groups, Morgan FP Football, DHS FP Rugby Club, DHS FP Cricket Club, Dundee Eagles Rugby, Scottish Touch Rugby, Rugby Tots, Scottish Hockey (regional hub), SRU, Dundee Indoor Cricket League, Boys Brigade. Where will they all go?? At what cost? In addition, we gladly give permission for the city council to use our facilities free of charge on several public occasions during the school year. Furthermore we freely and willingly offer our sports facilities to city schools, such as Morgan Academy for their sports days, and for the past two years we have hosted the Dundee Schools Track and Field Championships. For no charge. Where would these events have taken place, and at what cost? The actual and potential costs to society emanating from this Bill are considerable. Whilst difficult to calculate precisely, it is likely, even just in the case of Dundee, run into hundreds of thousands of pounds, and into millions across the country. In short, this proposal is utterly self defeating. 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? The High School of Dundee has existed since 1239 and the Board and staff are determined that it continues for a very long time into the future. We will therefore endeavour to meet the costs and make the necessary savings to secure the school. However, this proposal will inevitably be likely to be to the detriment of many of the above mentioned social and community benefits, and will hamper our ability to provide means tested financial support. 3 FCC/S5/19/NDR/134 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? No, other than it is uncertain. The imposition of a five fold increase in rates for the school will hamper the schools ability to award financial support which in turn will make it even more difficult for children to attend. This will inevitable affect school income levels at a level which cannot be predicted accurately, but will certainly be very negative. Wider Issues 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? No, it does not capture reasonably any costs as there are many unintended costs, both to the school and to wide sectors of the Dundee community as outlined in section 6 above if the facilities are no longer available for them to use. 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? I cannot comment on this until this subordinate legislation is known. However any additional costs would magnify the issues outlined already. This section 10 of the Bill should be removed completely. In short, this Bill and its proposal under section 10 represents financially a massive mistake – a huge own goal. It punishes excellence for political rather than genuine fiscal or financial reasons and can only have a massive negative impact, whether on our school specifically, the Dundee economy more widely and, seen nationally, on the prospects for economic growth in Scotland. It punishes excellence, aspiration and inclusion. Scotland needs excellent, aspirational education for our young people to drive the economy forward and help create the economic growth we so badly needs. I ask you therefore please to make the sensible decision and reject the proposal contained in Section 10 of this Bill. Dr John Halliday Rector High School of Dundee 4 .