New independent schools prohibited from distributing profits for first five years

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New independent schools prohibited from distributing profits for first five years
Photo: Claudio Bresciani/TT

The proposals are part of what the Liberals call a "complete renovation" of the independent school system.

The Tidö parties are now proposing a so-called value transfer ban, which means that newly started independent schools are prohibited from distributing profits for the first five years. The aim, according to the government, is to guarantee long-term ownership and stable finances for the principals.

Over 30 years of unregulated profit withdrawals end here and now, says Minister of Education and Integration Simona Mohamsson (L) at a press conference.

Leads to fines

A ban on profit distribution shall also apply for three years in the event of a change of ownership and for two years if the school has quality deficiencies and is subject to an injunction from regulatory authorities.

This is expected to increase the likelihood that a school's finances will be strengthened and that identified shortcomings can be addressed.

Such a system could also reduce the interest among unscrupulous actors in running a preschool or school, says the Moderate Party's education policy spokesperson, Josefin Malmqvist.

To ensure that the prohibition is complied with, separate accounting is required, meaning that the principal must provide complete accounts of the finances of individual school units.

Violating the ban could result in fines.

In certain cases, individual principals should also be obliged to repay school funds, the grants they have received from municipalities, if the money was used in a way that constitutes a crime or if the payments were based on incorrect information.

Can be forcibly administered

The government also wants to require that independent schools that are to be closed must notify the municipality no later than November 1 of the school year before closure.

The state should also be able to forcibly administer independent schools, which is not possible today, and it should be easier to close an independent school.

However, the proposals do not involve a total ban on profits or an end to the "overcompensation" that independent schools receive in relation to municipal schools, which is criticized by the opposition.

The profit party continues. None of the administrative rules they are proposing today will in any noticeable way reduce the profits, says Anders Ygeman (S), the Social Democrats' education policy spokesperson.

Center Party spokesperson Niels Paarup-Petersen writes in a comment:

"Without a common school choice, the removal of queues and a new financing model, the system will continue to be skewed. I understand that a complete renovation could take several years. But a little bit of putty shouldn't have to take an entire term."

Facts: Stricter conditions for independent schools

The government presents stricter measures for independent schools.

A prohibition on value transfers for the first five years in the case of a new establishment, for the first three years in the case of a change of ownership, and for the first two years in the case of a supervisory order.

Requirements for separate reporting for individual school units.

In certain cases, individual principals should be obliged to repay school funds if they are used in a way that constitutes a crime or if the payments are based on incorrect information.

Principals who wish to close a school must notify the municipality no later than November 1 of the previous school year.

Violation of the value transfer ban may lead to fines.

Independent schools should be able to be forcibly administered and it should be easier to close down an independent school.

The legislative amendments are proposed to enter into force on July 1, 2027.

Source: Ministry of Education

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By TT News AgencyEnglish edition by Sweden Herald, adapted for our readers

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