Mark Drakeford MS, Cabinet Secretary for Finance and Welsh Language
On 23 September, I launched a consultation on the Welsh Government’s proposal to withdraw charitable non-domestic rates relief from private schools, from 1 April 2025. In Wales, private schools are registered as ‘independent schools’.
This proposal seeks to bring independent schools with charitable status in line with other independent schools in Wales, for the purposes of non-domestic rates. The aim is to make additional funding available for local services in Wales, by withdrawing a government funded tax reduction for independent schools.
The consultation received 109 responses from a wide range of stakeholders. I am grateful to those who took the time to submit their views and recognise that the responses received from affected schools and the parents of their pupils did not support the proposal. There was broad support for the proposals from other members of the public who responded.
The matters raised by those opposed to a policy change were considered during the development of the proposal. The Welsh Government’s position on these matters was set out in the consultation and impact assessments.
The consultation sought to identify whether any of the independent schools affected by the proposal are specially organised to make additional learning provision (informally referred to as ‘independent special schools’). Following careful consideration of the responses, the Welsh Government has refined our proposed approach to ensure the continued eligibility for charitable rates relief of any independent school which is wholly or mainly concerned with providing full-time education to pupils with an Individual Development Plan (IDP). This approach was suggested by some consultation respondents, to provide an exception equivalent to that adopted for England. The exception from the withdrawal of relief will apply to ‘independent special schools’ at which most or all of their pupils have been placed by the local authority as part of their IDP, in order to meet their additional learning needs.
Subject to the inclusion of the exception set out above, I can confirm that the Welsh Government will proceed with the withdrawal of charitable rates relief from independent schools.
I have today laid the draft Non-Domestic Rating (Withdrawal of Charitable Relief for Independent Schools) (Wales) Regulations 2025 before the Senedd. Subject to approval by the Senedd, these regulations will come into force on 1 April 2025.
The summary of responses to the consultation is available at: Charitable non-domestic rates relief for private schools