🏛️ Non-Domestic Rating (Multipliers and Private Schools) Bill (changed to Non-Domestic Rating (Multipliers) Bill)
Commons Chamber
The House of Commons debated and ultimately rejected all Lords amendments to the Non-Domestic Rating (Multipliers) Bill, which aims to reform the business rates system by introducing new multipliers for retail, hospitality, and leisure properties. The government argued that the Bill supports high streets and small businesses by providing permanent tax relief, funded by higher rates on properties valued at ÂŁ500,000 or more. Opposition parties criticized the Bill for not leveling the playing field between online and physical retailers and for potentially harming anchor stores and manufacturing businesses. Additionally, the removal of charitable rate relief for private schools was a contentious issue, with the government defending it as necessary to fund state education improvements.
Summary
-
The Non-Domestic Rating (Multipliers and Private Schools) Bill was renamed to Non-Domestic Rating (Multipliers) Bill and was under discussion in the House of Commons as they considered amendments proposed by the House of Lords.
-
The Minister for Local Government and English Devolution, Jim McMahon, explained that the Bill aims to reform the business rates system, starting with the introduction of new lower multipliers for retail, hospitality, and leisure properties from April 2026. This is a step towards making the system more sustainable and supporting high streets.
-
The Government opposed all Lords amendments, arguing that they would dilute the targeted support for retail, hospitality, and leisure businesses. The Bill introduces a higher multiplier for properties valued at ÂŁ500,000 or more to fund the lower multipliers.
-
Discussions highlighted concerns about the impact on various sectors, such as manufacturing and healthcare, as well as anchor stores and private schools. The Opposition and other parties argued that certain sectors shouldn’t face increased tax burdens and that removing business rate reliefs from private schools could harm education accessibility.
-
The Bill’s measures to remove charitable rate relief from private schools were defended by the Government as necessary to raise revenue for improving state education, despite opposition from other parties who argued against the taxation of education.
-
The House voted against all Lords amendments, indicating strong support for the Bill in its original form, which focuses on supporting small retail, hospitality, and leisure businesses while increasing rates on higher-value properties.
Divisiveness
The session displayed a significant level of disagreement between the members of Parliament, primarily focused on the amendments proposed by the House of Lords to the Non-Domestic Rating (Multipliers) Bill. Here are the key points supporting the rating of 4 out of 5 for disagreement:
-
Disagreement on Amendments: The Government opposed all 19 amendments from the Lords, as stated by the Minister for Local Government and English Devolution, Jim McMahon. The disagreements centered around various aspects of the Bill, including the application of multipliers to different types of properties and the removal of charitable rate relief for private schools. For example, Jim McMahon moved for the House to disagree with Lords amendments 1 to 12 and 14 to 17, indicating a clear opposition to the proposed changes.
-
Debate on the Impact on Businesses: Kevin Hollinrake from the Conservative party criticized the Bill for not fulfilling the Labour party’s manifesto promise to level the playing field between high street businesses and online giants. He highlighted the potential negative impacts of the Bill on various sectors, such as manufacturing, healthcare, and education, leading to a disagreement with the Government’s stance on the Bill’s benefits to small businesses and the high street.
-
Specific Disputes on Policy: There were targeted disagreements on specific amendments, such as the exclusion of healthcare properties from the higher multiplier (Lords amendments 1, 6, 7, and 12). Jim McMahon emphasized the fiscal sustainability of the Bill’s current structure, while the opposition argued that these amendments were necessary to protect essential services like healthcare.
-
Ideological Differences on Education Policy: The removal of charitable rate relief for private schools (Lords amendments 15, 17, 18, and 19) sparked significant disagreement. Labour members, such as Mark Sewards, justified the policy as a means to fund state schools, whereas opposition members, including Munira Wilson from the Liberal Democrats and Suella Braverman from the Conservative party, argued against taxing education and criticized the potential adverse effects on both private and state schools.
-
Economic and Electoral Promises: Disagreement also arose over the interpretation of electoral mandates and economic policy. Mark Sewards defended the Government’s actions by referencing their election victory, while Munira Wilson challenged the mandate and pointed out unfulfilled promises and unintended economic consequences.
-
Voting Outcomes: The session culminated in a series of divisions where the Government overwhelmingly disagreed with the Lords amendments, with votes showing a clear majority against each amendment (e.g., 316 to 183 on Lords amendment 1). These divisions illustrate the strong disagreement within the House.
The session displayed a high level of contention, with opposition members systematically challenging the Government’s position on various amendments, reflecting significant disagreement on policy details, economic impact, and ideological grounds. However, the disagreement was not at the highest level (5 out of 5), as the dialogue, while critical, remained within the bounds of parliamentary decorum, and the Government’s position was consistently maintained without signs of fracturing.