Are you sure that the radio licence is not needed to obtain the PPL because according to the UK CAA it is.
Then I suggest you refer them to LASORS paragraph C1.6, which in part states:
A JAR-FCL PPL(A) may be issued without an FRTOL, however individuals will still be required to pass the JAR-FCL Communications (PPL) theoretical knowledge examination for the issue of the JAR-FCL PPL(A).
You will have taken the Communication theoretical knowledge examination as part of your PPL - unless the school ripped you off for that as well.
What is the point of obtaining a JAA licence if it can't be used elsewhere.
Any JAA licence can be used in any other JAA member state. A JAA PPL is issued in accordance with ICAO Annex 1 and, as such, is recognised by every other ICAO member state. How do you get the idea that a JAA licence 'can't be used elsewhere'?
If you have a problem with rules and regulations then you're really going to enjoy the Air Law exam at ATPL level!!