PLANS to strip private schools of charity tax breaks are about fairness and levelling the playing field, the author of a review into Scotland’s business rates system has said.

Ken Barclay, a former RBS chairman, said initial assessments indicated the move would cost independent schools just £150 per pupil a year – or around 1.25 per cent of average fees.

He said: “We looked at it on the basis of fairness, and we felt it was appropriate – and I felt it was appropriate – to level the playing field between the state sector and the private sector.”

Mr Barclay chaired a review into non-domestic rates which made a number of recommendations to revamp the system, including removing eligibility for charity relief from all private schools, saving £5 million a year.

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Legislation has now been introduced to the Scottish Parliament on the back of the report – but independent schools insist the move could prove devastating.

Under existing rules, all private schools are eligible for 80% mandatory rates relief if they are registered as a charity.

Local authorities have a discretionary power to “top up” this relief, up to 100%. State schools do not qualify for charity relief.

Giving evidence to Holyrood’s Local Government and Communities Committee, Mr Barclay said: “It was quite apparent to us that since state schools were paying rates, it was entirely appropriate that independent schools should pay rates too.”

He said he was trying to “level the playing field”, adding: “I think it’s probably worthwhile giving some context for the panel.

“And that context is there are about 35,000, at the time of writing this report, pupils at independent schools in Scotland.

“Our assessment of the work that was done is that it would bring in round about £5 million.

“That equates to about £150 per pupil per annum, in addition to the fees that are payable.

“The average fees in Scotland are around £12,000 a year, so it’s 1.25% over and above that which they are currently paying.

“In that context, that was enough for us to say that shouldn’t be enough to make them unable to either pass that fee on, or absorb some of that themselves.”

Documents published alongside the Non-Domestic Rates (Scotland) Bill suggest removing charity relief will cost private schools £7m extra in the first financial year, before this figure rises in line with inflation.

This would see the independent sector hit with a £37m bill over five years.

John Edward, director of the Scottish Council of Independent Schools, previously said the move could see smaller schools forced to pay up to £600 more per pupil.

He said this would leave institutions with tough decisions over whether to hike fees, sell off assets such as playing fields, cut teachers or scale back means-tested assistance.

Private special schools and specialist independent music schools would continue to be eligible for charity relief under the new legislation.