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Non-Domestic Rating (Multipliers and Private Schools) Bill
25 November 2024
Lead MP
Nusrat Ghani
Sussex Weald
Con
Debate Type
Bill Debate
Tags
Taxation
Other Contributors: 45
At a Glance
Nusrat Ghani raised concerns about non-domestic rating (multipliers and private schools) bill in the House of Commons. Other MPs contributed to the debate.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Nusrat Ghani
Con
Sussex Weald
No extracted contribution text available for this contributor yet.
Luke Evans
Con
Hinckley and Bosworth
Raises concerns about the cumulative impact of recent policy changes on small businesses, questioning how the proposed measure will engender stability for them given they have to wait until 2026.
Andrew George
Lib Dem
St Ives
Questions the fairness of the small business rate relief, suggesting that wealthy second home owners have used this benefit to their advantage, costing taxpayers over £500 million in Cornwall.
Jim Shannon
DUP
Strangford
Calls for exemptions from the measures for religious schools due to faith-based education needs not fitting comfortably with mainstream schooling, urging the Government to reconsider its approach.
Gosport
Asks for clarity on the definition of 'wholly or mainly' concerning private schools providing education for pupils with special educational needs and disability, as well as support for councils facing financial strain from losing charitable status and VAT imposition on school fees.
Christopher Vince
Lab Co-op
Harlow
Supports the Budget’s prioritisation of state schools, highlighting teachers' renewed hope under this Government and expressing shock at Conservative criticism of private school tax exemptions.
Munira Wilson
Lib Dem
Twickenham
Concerned about the impact on partnership work between independent schools and disadvantaged state schools, noting that both measures in this Bill and the introduction of VAT on private school fees will lessen opportunities for disadvantaged children.
Kevin Hollinrake
Con
Thirsk and Malton
Seeks confirmation regarding the continuation of small business rates relief for the rest of this Parliament.
Victoria Collins
Lib Dem
Harpenden and Berkhamsted
Critiques that only 'most' special educational needs schools will be exempt from provisions, questioning if it is good enough given the ongoing SEND crisis.
Kevin Hollinrake
Con
Thirsk and Malton
The amendment highlights the negative impact of increasing business rates, lack of consultation with businesses, and broken promises from Labour on business rate relief. It also raises concerns about the increase in National Insurance contributions and VAT on private school fees.
Charlie Maynard
Lib Dem
Witney
Intervened to criticise the Conservatives for lecturing Labour about red tape, referencing Brexit's negative impact on the economy.
James Murray
Lab Co-op
Ealing North
Asked whether 75% business rates relief for retail, hospitality and leisure businesses was due to expire in April 2025.
Christopher Vince
Lab Co-op
Harlow
Inquired about the number of state schools in the shadow minister's constituency and whether he would speak passionately about them regarding government support for state schools.
Calder Valley
Queried the impact of school cuts in Thirsk and Malton since 2010 and whether the shadow minister had spoken out about them.
Luke Evans
Con
Hinckley and Bosworth
Emphasised the impact of taxing private schools with VAT on funding for state schools, noting that thousands of pupils have moved to the state system already.
Adam Thompson
Lab
Erewash
Stresses that state schools face severe challenges with teacher retention and subject shortages, especially in STEM fields. Cites statistics indicating a significant drop-off rate among new teachers within their first few years of employment due to unsatisfactory working conditions and insufficient resources. Advocates for equitable funding and support measures to ensure all children receive high-quality education regardless of their school's status or location.
Patrick Spencer
Ind
Central Suffolk and North Ipswich
[INTERVENTION]: Acknowledges improvements in international educational performance and a narrowing disadvantage gap under previous government policies, suggesting there are valid achievements to be recognised.
Graham Stuart
Con
Beverley and Holderness
[INTERVENTION]: Questions whether the timing of implementing such changes mid-year might adversely affect students, particularly those with special educational needs, hindering their ability to engage fully with the curriculum and prepare for examinations.
Daisy Cooper
Lib Dem
St Albans
Critiques the current business rates system for being unfair and damaging to high street businesses. Argues that it inhibits investment, job creation, and economic growth. Proposes a new system based on a commercial landowner levy. Highlights unintended consequences of the Bill's changes, such as independent shops losing out while large chains may gain relief. Raises concerns about specific impacts in her constituency, like Ye Olde Fighting Cocks pub facing an increase of £30,000 and DJ’s Play soft play centres struggling.
Andrew George
Lib Dem
St Ives
[INTERVENTION] Emphasises the need for a rating system that levies rates on parking spaces in out-of-town retail outlets to ensure an even playing field between town centre shops and supermarkets.
Calder Valley
[INTERVENTION] Reflects on the coalition Government's decision to scrap the Building Schools for the Future programme, questioning whether it has prevented state schools from providing for more students.
Wolverhampton North East
Ms. Brackenridge argues that removing charitable tax status for private schools is essential to bridge the funding gap between state and private education. She provides statistics showing significant disparities in GCSE results, with nearly 50% of private school students achieving a grade 7 or higher compared to less than 20% from state comprehensives and academies. The amendment seeks to generate funds for state schools, improve teacher recruitment, modernise infrastructure, and enhance support services.
Damian Hinds
Con
East Hampshire
He argues against reforming business rates in a way that disproportionately affects hospitality and retail businesses. He highlights that small businesses in these sectors are facing significant challenges due to fixed-cost nature of business rates, which do not flex with sales or profitability. Damian Hinds emphasises the economic impact on town centres and high streets, mentioning that retail and leisure account for over a third of business rates despite comprising less than a tenth of the economy. He criticises the bill for failing to make distinctions between online businesses and traditional retail, leading to unintended consequences such as increased costs for hotels and department stores. Furthermore, he raises concerns about the proposed reform's immediate financial impact on businesses during economic downturns.
Imran Hussain
Lab
Bradford East
Welcomes changes to business rates but emphasises previous Tory cuts to state schools. Argues for ending private schools' tax breaks to fund teacher recruitment and breakfast clubs. Acknowledges impact on smaller independent and faith schools, urging safeguards for them.
Graham Stuart
Con
Beverley and Holderness
Interjects to ask if Imran Hussain will vote against the Bill due to its impact on small schools. Questions whether every private school is equivalent to Eton.
Anna Sabine
Lib Dem
Frome and East Somerset
Supports changes for high streets but raises concerns about insufficient support for small businesses outside retail, hospitality and leisure sectors. Proposes a new levy on commercial property owners instead of tenants.
Polly Billington
Lab
East Thanet
Supports reforming business rates to provide stability and certainty for high streets, especially in the wake of a decade of chaos. Proposes reducing burdens on small businesses through tax relief and freezing the small business rate multiplier at 40%. Advocates for removing private schools’ rates relief to fund state education improvements.
Charlie Maynard
Lib Dem
Witney
Expresses disappointment in the Government's limited ambition regarding business rate reforms. Suggests that high streets will remain troubled and manufacturing sectors will receive no relief despite facing challenges post-Brexit. Calls for a commercial landowner levy, scrapping stamp duties on commercial land, and ending exemptions on empty premises to incentivise property use.
Christopher Vince
Lab Co-op
Harlow
Emphasises the need to improve state school quality so much that private schools are unnecessary. Cites underfunding of SEND support in state schools as a reason for parent's choice, proposing that with additional funding, state schools can provide better services.
Graham Stuart
Con
Beverley and Holderness
Intervenes to point out that many private schools charge less than the funding received by state schools. Questions whether the policy should focus on supporting vulnerable schools rather than penalizing successful ones.
Nusrat Ghani
Con
Sussex Weald
Comments that the previous speaker did not explain the movie referenced in his speech, implying a lack of clarity or relevance to the debate topic.
Sarah Bool
Con
South Northamptonshire
Raises concerns about the potential closure of private schools due to increased taxes and financial burdens. Describes the impact on children with special needs who may lose access to specific educational opportunities if these schools close.
Michelle Welsh
Lab
Sherwood Forest
Argues that removing charitable tax status from private schools will generate additional funding for state schools, addressing the disparity in choice and quality between public and private education. Highlights the challenges faced by state schools due to cuts and underfunding.
Vikki Slade
Lib Dem
Mid Dorset and North Poole
Ms. Slade criticises the Bill for not addressing the fundamental issues of business rates reform, such as inequity between physical and online businesses. She cites an example where her former café had significantly higher costs compared to a competitor benefiting from small business rate relief, illustrating the unfairness in the current system.
Iqbal Mohamed
Ind
Dewsbury and Batley
Mr. Mohamed raised concerns about tax loopholes that benefit online businesses over small physical enterprises, suggesting additional mechanisms for funding reform.
Matt Rodda
Lab
Reading Central
Mr. Rodda commended local government efforts to support small businesses and suggested working with the business community to implement policies that help sustain town centres.
Gideon Amos
Lib Dem
Taunton and Wellington
Critiques the Conservative approach to supporting business, highlighting negative impacts on independent schools and small businesses due to increased national insurance contributions. Expresses concern over job losses and reduced investment in local economies. Urges the Minister to reconsider the effects on education and local authorities.
Peter Lamb
Lab
Crawley
Supports the changes proposed by the Bill, arguing that it is necessary to adapt taxation systems to modern realities. Emphasises the importance of town centres and the need for public investment in reinvigorating high streets. Advocates for fairer business rate structures to support local communities.
Iqbal Mohamed
Ind
Dewsbury and Batley
He supports reducing high street business rates relief from 75% to 40%, but opposes removing charitable status for private schools as it would penalise low-income families who rely on these schools. He cites that private faith schools in his constituency charge less than £3,000 per pupil and serve poor working-class families.
Steve Yemm
Lab
Mansfield
He welcomes the reforms to business rates that will bring certainty and fairness for retail, hospitality and leisure businesses. He supports ending tax breaks on private schools as these funds are needed to support state education systems.
Clive Jones
Lib Dem
Wokingham
He criticises the Bill for not addressing small businesses outside retail, hospitality and leisure sectors. He argues that increased national insurance contributions will harm local economies and charities.
Mark Sewards
Lab
Leeds South West and Morley
Supports removing charitable rate relief on business rates for private schools to increase funding for state education. Emphasises that parents of children in both public and private schools work hard but acknowledges that those in state schools often cannot afford private school fees. Advocates for improving state schools, citing crises such as SEND shortages and teacher recruitment difficulties.
Victoria Collins
Lib Dem
Harpenden and Berkhamsted
Highlights negative impact of business rates on small businesses, including closures and threats to investment. Calls for reform of business rates system and introduction of a commercial landowner levy to support local businesses and communities. Questions fairness of raising funds through charitable rate relief changes for private schools.
David Simmonds
Con
Ruislip, Northwood and Pinner
David Simmonds argues against the proposed tax increases on pubs and shops. He points out that the policy will increase inflation and borrowing costs for councils and hurt local economies. He also criticises the Government's promise to replace business rates with this new measure, noting it contradicts their earlier pledge. Additionally, he raises concerns about the impact on special needs schools and small faith schools. Simmonds emphasises the positive changes in state education standards under previous Conservative governments and questions whether the proposed policy is motivated by spite rather than improving educational standards.
Jim McMahon
Lab Co-op
Oldham West, Chadderton and Royton
Thanked all hon. Members for their contributions to the debate on high street support in the Business Rates Bill. Criticised the Conservative party's record during their time in government, highlighting issues such as bank closures and agricultural business closures under their rule. Emphasised that 1 million properties will be protected against inflationary increases next year due to the Government's measures. Stressed the importance of providing certainty for businesses beyond yearly uncertainties.
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