Friday February 28th 2025
Written by Local Democracy Reporter, Paul Kelly
Scottish Borders Council is making a “bank transfer” to ensure that school accounts avoid paying new charges.
The authority plan to move school bank accounts from the Bank of Scotland to the Royal Bank of Scotland to avoid the former’s monthly charges.
The moves comes after Bank of Scotland decided to charge £4.50 per month to maintain Parent Council bank accounts and to levy other fees, for example for the processing of direct debits.
Kelso & District Lib Dem councillor Euan Robson raised his concern about the monthly banking charges at a meeting of full council following complaints made to him by members of a Parent Council in Kelso.
He said: “I was taken aback by the monthly charges which for small schools were very burdensome amounting to £54 per annum.
“I don’t see why the profits from parents’ fundraising events such as raffles at kids’ discos, treasure hunts, spring and autumn fayres etc should go to improve a bank’s bottom line. Where’s their corporate social responsibility policy?
“The changes that the council is making will eliminate these monthly charges, improve accountability, reduce the administrative burden on school staff and make changes in signatories easier, which is all very welcome.”
Councillor Leagh Douglas, SBC executive member for Finance, IT and Corporate Governance, responded to a question from Mr Robson, stating: “Officers were made aware of the changes at the end of last year. It impacts school fund accounts which are held with Bank of Scotland and came into effect from 1st January 2025.
“Currently school bank accounts are managed and fully administered by school staff.
“The council’s bank is RBS with accounts contracted under a procurement framework to ensure best value to the council.
“Currently some schools have Royal Bank of Scotland accounts but outwith the framework which means the council does not have oversight of the funds.
“In order to avoid the charges being levied by Bank of Scotland and to improve oversight and governance of all school funds it has been agreed that all school bank accounts will transfer to Royal Bank of Scotland (RBS) accounts, under the council’s procurement framework.
“We are liaising with RBS to complete this work as soon as possible and currently finalising the agreement of the required signatories for each account.
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