Lib Dems Call On Minister To Scrap 'Tax On Schools'

1.35.00pm UTC (GMT +0000) Tue 23rd Oct 2007

West Worcestershire's Liberal Democrat Parliamentary Candidate, Richard Burt has today written to Education Minister, Ed Balls to ask him to scrap Government plans to impose a 5% "tax" on school cash balances.

Richard Burt said: "This Government plan is absolutely daft - it is a tax on prudent schools. Almost two thirds of these balances are already committed to specific capital projects. This will be a real blow to schools in Worcestershire that have saved and raised funds for major development.

"Does this Government really believe that it knows better than Head Teachers and Governing Bodies how to spend the money given to them?

"This is already causing fury amongst many schools which have been saving up for years for much needed investment. Ninety per cent of all schools will have their bank balances raided under these plans.

"The plans will also claw back monies based on balances as at 31st March 2007 - even when the money has since been spent. This will cause outrage amongst a small number of schools.

"The policy penalizes prudent schools and rewards those who have been either less prudent or who accidentally happen to have just spent their capital on a large project - it is plainly irrational.

Mr. Burt has called on Ministers to "consign the policy to the departmental waste paper basket".