Two Oxfordshire independent schools have been criticised for their part in a 'fee-fixing' operation, in a report by the Office of Fair Trading.

Headteacher Andrew Trotman at St Edward's School

St Edward's School, Oxford, and Radley College, near Abingdon, are among 50 leading public schools facing fines after the Government watchdog provisionally ruled they breached competition law by sharing fee details.

According to the OFT, the schools, which both charge more than £20,000 a year boarding fees, took part in the 'Sevenoaks Survey' between 2001 and 2004.

Along with other famous independent schools, including Cheltenham Ladies, Eton, Harrow and Marlborough College, they are accused of supplying details of their intended fee increases to Sevenoaks School, which then circulated the information several times each year. In a statement, the OFT said: "This regular and systematic exchange of confidential information as to intended fee increases was anti-competitive and resulted in parents being charged higher fees than would otherwise have been the case."

The schools have until March 2006 to respond.

The Independent Schools Council (ISC), representing the schools, has launched a scathing counter attack on the OFT for spending two-and-a-half years and hundreds of thousands of pounds on the investigation, which it describes as a "scandalous waste of public money".

Until March 2000, schools were exempt from competition law and could exchange any information without restriction.

The ISC said public schools were not consulted or informed when this changed as a result of the Competition Act 1998, adding that they stopped sharing financial information as soon as they realised the legislation applied to them.

Stephen Withers Green, bursar at St Edward's School in Woodstock Road, said: "St Edward's has received a statement of objection from the OFT in relation to this.

"It's a large document which we will be considering with our lawyers before we make any response."

Richard Beauchamp, bursar at Radley College, confirmed that Radley had received a statement from the OFT. He said: "We have until March to respond and we will be doing so in due course."

ISC general secretary Jonathan Shepherd said that sharing fee information was an effective way of keeping fees as low as possible and that charities had no motive for raising more money than needed.

STUDENTS at St Edward's School are preparing to meet the Princess Royal at a charity fundraising event this evening.

Head pupils Robert Lee and Rebecca Cowley will present £5,00 to Princess Anne, patron of the Oxford-based charity Opportunity International UK.

The charity sets up trust banks in developing countries to provide people with small business loans.