Non-Domestic Rating (Multipliers and Private Schools) Bill

Baroness Barran Excerpts

2nd reading
Wednesday 29th January 2025 Lords Chamber

[Baroness Barran (Con)]

My Lords, I would like to add to the noble Baroness’s list of messages to send to the noble Lord, Lord Khan, and his family. I send my very best wishes to them at this time.

I listened very carefully to the speeches made by your Lordships this evening. I am struck by the range of concerns expressed across the House, based, as they appear to be, on a lack of transparency in the Bill and the number of moving parts. In fact, the clarity is so absent that my noble friend Lady Scott and the noble Lord, Lord Fox, ended up with very different analyses of where the impact of the Government’s proposed changes will fall.

The Government are rightly focusing on much-needed growth in our economy, and I do not doubt their commitment to achieving that, but there is a lack of alignment in the actions that they have been taking in order to deliver on that aspiration. This Bill comes after the harmful decision to increase employers’ national insurance and ahead of the impact of the Employment Rights Bill—one where, as the noble Baroness knows, the Regulatory Policy Committee has been deeply critical of the Government’s impact assessment, deeming it not fit for purpose and, crucially, stating that the cost to business will be higher than the £5 billion forecast by the Government. My noble friend Lord Jamieson was spot on when he said that businesses needed to be nurtured and not taxed.

I echo the concerns of my noble friend Lady Scott of Bybrook and other noble Lords. This Bill does not achieve what the Government committed to in their manifesto—namely, the reform of the business rates system: as the noble Earl, Lord Lytton, said, quoting again,

“the levelling of the playing field between the high street and the on-line giants”.

Since the Bill does not do that, it would be helpful to the House if the Minister could explain why.

We are, as the noble Lord, Lord Fox, and other noble Lords have said, once again having to respond to a Bill which does not give us clarity on how it will work in practice and what its impact will be. There has been no proper consultation with businesses, no impact assessment on Clauses 1 to 4 and no clarity on what the business rate multipliers will be. The Minister explained the technical reasons why the latter is the case, but I think—and hope—she could be sympathetic to some of the questions that have been posed to her across the House. If the Bill becomes law without amendment, it will give the Government powers to set business rates multipliers without clarity on how those powers will impact on businesses.

Therefore, can the Minister give the House a forecast for how these proposed changes in business rates will affect council budgets and the revenue they receive, and the revenues to the Exchequer? Ideally, as my noble friend Lady Scott asked, we would like an explanation before we reach Committee. Do the Government have an official estimate of the impact of these measures on jobs? As the noble Baroness knows, retail alone employs 5 million people. She will have seen the forecast from the Centre for Retail Research projecting that more than 17,000 shops are expected to close this year.

It would also help if the Minister could give the House more clarity on the impact on different categories of businesses. We have heard concerns about pubs, leisure centres and anchor stores in high streets. We know that the reduction in small business rate relief from 75% to 40% will have a big impact on many of those businesses, with hospitality, leisure and retail paying just over 30% of all business rates, much larger than their contribution to GDP overall.

We also heard concerns from the noble Earl, Lord Lytton, about the impact on local authority schools, hospitals, police stations and, potentially, our universities. The Minister will have seen calls from the Local Government Association for further clampdowns on business rates avoidance, and I wondered what the Government plan to do to respond to those. The LGA has also called for more flexibility for councils on business rate relief in relation to charities and empty properties and the ability to set their own multipliers, either above or below the national multiplier. My assumption is that that is a reflection of how they feel that they have a real understanding of their local situation and pressures, and want to be able to respond to those. Again, it would help if the Minister could respond to that.

I hope very much that the Minister, who I know does listen, will listen to those concerns from across the business community: from the Association of Convenience Stores to major retailers such as M&S and Sainsbury’s, from leisure centres to hospitality businesses, and from universities to the public sector.

Turning to Clause 5, I thank my noble friends Lord Waldegrave, Lord Maude and Lord Lexden in particular for their extremely eloquent and heartfelt arguments in favour of a more generous and collaborative approach. Certainly, I can speak personally from my time in government and say that we tried to emphasise and encourage more collaboration, and more contribution from independent schools. Now, when faced with a new schools Bill from the Government, we would argue that the flexibilities that have unlocked so much energy, as we heard from my noble friends, in preschools and academies, should be given also to maintained schools.

I went to see the most wonderful primary school—if anybody is in Oldham, I would recommend a visit—last week. It is a maintained school, but it is achieving what it is achieving despite its maintained-school status, rather than because of it. It cannot have all the flexibilities, in terms of timetabling and length of school day, that it would have if it were an academy.

The broader picture for independent schools, as we have heard, feels like continued attack, with the decision to apply VAT to fees part-way through the school year, and now the decision to remove their entitlement to business rates relief for those with charitable status. As we have also heard, schools are also hit by the rise in national insurance contributions and by the increased contribution to the teachers’ pension fund. It is hard to understand this decision in anything other than ideological terms. As we have heard, it does not raise significant sums of money: £70 million out of the £1.8 billion which the Government hope to raise from VAT and this proposal. The same change is not being proposed for stand-alone nurseries, but it will impact nurseries that are part of an independent school. As we have heard from other noble Lords, this seems a curious way, at best, to approach charity law. It will, as we have heard, create a two-tier charity system in which some charities can be disadvantaged fiscally, even when they comply fully with their charitable obligations and serve their communities.

Secondly, we are very concerned about the displacement into state schools of some pupils who are currently in independent schools, particularly those with special educational needs and disabilities. I understand that the Government have estimated this number to be just under 3,000 pupils. As I mentioned to the Minister when we met earlier this week, the national figure is not so important. What is important is what is happening in those local authorities that really have no spare places: in areas such as Surrey or Bristol or, as my noble friend Lord Lexden said, in areas such as Bury and Salford, where small, low-cost faith schools will be hit by this move.

How are local authorities in these areas going to accommodate children whose parents can no longer afford to send them to an independent school, and now need a place in the state system? Where is the capital funding going to come from to pay for these places? There are normally long lead times on pupil-place planning for a good reason; children cannot be accommodated well at very short notice.

While these specific measures will have a relatively small effect on displacement into state schools, we need to be clear that there will still be some displacement, and that is a cost to the state. More importantly, when it comes to individual places, it will be a strain on class sizes in some of our local schools and, ultimately, on parents’ prospects of getting the first-choice school they want their child to go to.

The Minister will know that we are particularly concerned about children with special educational needs and disabilities in this context. Some parents have felt they want their child to be educated privately and have made great financial sacrifices to do so. They have not sought an education, health and care plan because they do not want their child labelled in that way, and some of these children will now enter the state system and put more pressure on stretched SEND teams. What support will the department give to schools and trusts to make this workable? Will it commit to monitoring these moves and reporting on them, including any funding and placement challenges for local authorities, as the LGA has requested?

More broadly, all around the country, independent schools are involved with their local state schools, working in partnership, sharing resources such as swimming pools, theatres, academic staff and more. Have the Government assessed the impact on state schools if it becomes impossible for independent schools to continue these partnerships, as my noble friend Lord Waldegrave explained, having to focus rather on retaining bursaries, in line with their charitable objectives?

Of course, we welcome the carve-out for schools that wholly or mainly educate children with an education, health and care plan, but I would be grateful if the Minister can confirm how many schools this applies to and how many children are educated there.

This Bill raises many more questions than it answers. Maybe one could generously say that the Government’s direction of travel has been sketched out; the detail along the way certainly has not. While the Government talk about importance of certainty, businesses are not getting certainty with the Bill, apart from, of course, charitable independent schools, where the misguided decision to tax some parts of our education system is all too clear. I appreciate I have asked the Minister many questions. I look forward to her reply, but if she is not able to answer all of them, I would be grateful if she could write.

International Women’s Day

Baroness Barran Excerpts

Friday 10th March 2023 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Education (Baroness Barran) (Con)]

My Lords, I thank all noble Baronesses and noble Lords who have spoken today. In particular, I welcome my noble friend Lady Lampard; like hers, my mother was both a refugee and an indomitable woman, so I can identify with some of what she said. The noble Baroness, Lady Finlay, mentioned the warm welcome she got when she arrived in this House from the noble Baroness, Lady Gale; the noble Baroness gave me an incredibly warm welcome and I know that my noble friend will receive an equally warm welcome from all sides of your Lordships’ House.

Our debate today has provided a space in which to reflect on the many challenges that disproportionately affect women and girls. However, it has also shone a light on the progress we have made in overcoming some of the barriers that prevent women and girls fulfilling their true potential.

Of course, as your Lordships have noted, it is critical in achieving this both at home and abroad that girls and young women get a proper, broad education. It is only fitting, therefore, that I remind the House that the UK is a world leader in championing girls’ education. We used our presidency of the G7 in 2021 to agree two ambitious global targets: getting 40 million more girls in education and 20 million more girls reading by the age of 10 by 2026. Educating girls helps to prevent child marriage and early pregnancy; it helps women into the workforce; and it boosts household incomes and economic growth.

There is a huge global education crisis, exacerbated by the Covid-19 pandemic, with 244 million children out of school globally. More than half those children are girls. Through the girls’ education action plan, which we published in 2021, the UK supports education systems in developing countries to deliver quality education for all children in a way that is safe, inclusive and sustainable. That is so important to overcome some of the stereotypes that a number of your Lordships referred to, including the noble Baronesses, Lady Barker and Lady Ludford, my noble friend Lady Jenkin and the noble Lord, Lord Sahota. Indeed, I got a text message from my daughter this morning because apparently the Financial Times is running an article titled “Style Your Life FT Pink”. She reminded me that, when she was a child, she thought her father got a grey paper and her mother got a pink paper because her mother was a woman. Someone had better break it to the editor of the FT.

At home, the Government recognise the huge contribution of the early years workforce to making sure that every child has the best start in life. The noble Baronesses, Lady Watkins, Lady Twycross and Lady Thornton, and the noble Lord, Lord Monks, all stressed the importance of accessible and affordable childcare. I was concerned about the case the noble Baroness, Lady Watkins, raised of a woman who found it too complex to navigate. Supporting the childcare and early years workforce continues to be a priority for the department. That is why we are supporting the sector in early years to recruit and retain more staff, for example by providing additional funding for graduate-level specialist training leading to early years teacher status. As the noble Lord, Lord Addington, knows, we are also funding an accredited level 3 early years SENCO qualification so that all children with special educational needs and disabilities, in particular the young girls to which the noble Lord referred, are identified at the earliest possible point.

In relation to childcare, we know that the sector is facing economic challenges similar to the challenges faced across the economy. We have already announced additional funding of £160 million in 2022-23, £180 million in 2023-24 and £170 million in 2024-25, compared with the 2021-22 financial year, for local authorities to increase the hourly rates paid to childcare providers. This is crucial for improving the cost, choice and availability of childcare for working parents.

More broadly, in relation to flexible working, which the noble Baroness, Lady Watkins, referred to, on 5 December 2022 the Government published the response to their consultation on flexible working, which committed to give all employees the right to request flexible working from their first day of employment. This will ensure that an additional estimated 2.2 million people will be able to request changes to their hours, times or place of work. The Government have also committed to further legislative changes that will support more open and constructive engagement between employers and employees to find acceptable flexible working arrangements.

My noble friends Lady Seccombe, Lady Meyer and Lord Shinkwin all expressed their concerns about the relationships and sex education curriculum in schools. Just to clarify for the noble Baroness, Lady Ludford, the Government are clear that biological sex is a fact. It exists and it clearly matters.

There is a very sensitive and precious relationship between schools and parents, and keeping that confidence and level of trust between schools and parents, particularly in these very sensitive areas of the curriculum, is critical. My right honourable friend the Prime Minister was absolutely clear earlier this week when he said that schools should not be teaching inappropriate or contested content in this area. Our priority should always be the safety and well-being of children, and schools should make the curriculum content and materials available to parents. We will be bringing forward a review of the statutory guidance on the relationship, sex and health education curriculum and starting a consultation on that as soon as possible.

My noble friend Lady Sater and the noble Lord, Lord Addington, referred to the importance of school sport. I feel I need to readjust the noble Lord’s perception of status: I think, given the performance of the Lionesses, that perhaps status has tipped a little in favour of the women—but I will leave him to consider that point.

[Lord Addington (LD)]

The point I was making was that football is traditionally seen as a male sport—that is the status they have gained—not the fact that women’s sport itself has changed.

[Baroness Chakrabarti (Lab)]

It was a joke, mate.

[Baroness Barran (Con)]

The noble Baroness, Lady Chakrabarti, has put it well: it was meant in the spirit of this debate. I thank my noble friend very much for welcoming our announcement this week, particularly as I was that girl who dreaded the sports lesson, unlike my noble friend who could not wait for it. We have announced additional funding to support schools to provide high-quality PE and sport to pupils and to make sure that girls have exactly the same access to sport in schools. We want to really acknowledge and highlight, through the School Games Mark, those schools that can really demonstrate their delivery in this area. My noble friend is absolutely right to highlight the role of coaches, and the Government absolutely share her view of the importance of sport in building confidence, well-being and physical and mental health.

On the issue of women and girls in STEM, the noble Lord, Lord Browne of Ladyton, rightly highlighted the extraordinary contribution of women scientists in the Covid-19 response. I thank the noble Viscount, Lord Stansgate, for also bringing our focus on to women who are at the early stages of their STEM career. I can reassure the noble Baroness, Lady Bennett of Manor Castle, that the Government absolutely understand the importance of the issues she raised in relation to ecology, soil systems and the like. She asked about encouraging girls into these areas. The Government’s commitment is always to offering choice. These are incredibly important and exciting careers and I imagine many girls will be enthused by them, but our focus is on choice and for the young woman to decide, and I imagine the noble Baroness has some sympathy with that.

The noble Lord, Lord Mair, raised the importance of engineering. I thank the Royal Academy of Engineering for the work it is doing to encourage women into this field and the noble Lord for the examples he shared with the House: they really brought alive the range of opportunities in engineering. The noble Baroness, Lady Wilcox, raised the importance of careers advice for young women in schools and of being clear about routes into STEM careers. We are taking action on this in specific sectors. For example, we have been supporting the Tomorrow’s Engineers code, which is managed by EngineeringUK.

The noble Viscount, Lord Stansgate, raised the point about women returning to the workforce. We are funding a new returners programme to help women back into these industries. We are also launching a women-led high-growth enterprise task force to increase the number of women starting high-growth and cutting-edge businesses, which is one element of building the leadership pipeline that the right reverend Prelate the Bishop of London referred to.

Moving from education to health, the noble Baronesses, Lady Barker, Lady Watkins and Lady Thornton, raised the issue of the menopause. I reassure the House that the Government recognise that the menopause can be a challenging time for women, which is why we put women’s health at the top of the agenda as part of the first-ever Women’s Health Strategy for England.

I remind the House that the Department of Health and Social Care is implementing an ambitious programme of work with the NHS to improve menopause care so that all women can access the support that they need, which will in turn support women either to return to, or stay in, the workforce. Just last month, the Minister for Women announced that, from 1 April, women prescribed hormone replacement therapy will have access to a new scheme, enabling access to a year’s worth of menopause prescription items for the cost of two single prescription charges. This will give around 400,000 women across England better access to menopause support.

More broadly in the area of health, I thank the noble Baroness, Lady Finlay, for highlighting the remarkable work of Dame Cicely Saunders and the extraordinary role that women play, particularly in conflict zones.

The noble Baroness, Lady Miller of Chilthorne Domer, asked what the Government were doing to encourage breastfeeding. She will be aware that we are investing around £300 million in family hubs and Start for Life services. That includes £50 million for infant feeding services, which will allow appropriate support for mothers and their babies in their breastfeeding goals.

The noble Baroness, Lady Donaghy, asked for an update on our funding of maternity services. In 2022, we invested £127 million into the maternity system, which will go towards the maternity workforce and improving neonatal care. Of course, we keep that funding under review.

I think the House will join me in thanking my noble friend Lady Cumberlege for her work on patients harmed by different medicines and devices. She raised the issue of compensation and will be aware that the Department of Health and Social Care is seeking views from the Patient Safety Commissioner on what redress schemes for sodium valproate and pelvic mesh could look like. But I will again share her concerns with colleagues in that department.

I turn to tackling violence against women and girls. As my noble friend Lady Scott highlighted in her opening remarks, tackling violence against women and girls is a government priority. These crimes are deeply harmful, not just for those affected and their children but for society as a whole. To help end this scourge, we published a new Tackling Violence Against Women and Girls Strategy in 2021 to drive improvements, to target perpetrators more effectively and to support their victims. In March 2022, that was followed by the Tackling Domestic Abuse Plan, which commits to investing over £230 million of cross-government funding in tackling these terrible crimes. This money is for our work at home, but I thank the noble Baroness, Lady Anderson of Stoke-on-Trent, for highlighting the tragic deaths of so many women internationally, simply, as she said, for upholding their human rights. I also thank the noble Baroness, Lady Taylor of Stevenage, for her account of the life and important work of Lady Constance Lytton.

I also thank the noble Lord, Lord Mann, for raising the issue of the scale and harm caused by child sexual abuse. I recognise his picture of disclosure, maybe not in the capacity of canvassing, but I remember that when I worked in the City, nobody ever asked me about domestic abuse, but when I ran a domestic abuse charity, I could not get on a bus without somebody wanting to talk to me about domestic abuse. It is about giving people that ability, permission and safe place to disclose.

More broadly and internationally, the UK is also a global leader on tackling sexual violence in conflict. As my noble friend Lady Scott mentioned, the UK hosted the International Preventing Sexual Violence in Conflict Initiative Conference in London in November last year, which brought together partners, survivors and civil society organisations from more than 57 countries.

The noble Lord, Lord Brooke of Alverthorpe, expressed his deep concerns about the availability of pornography to children. As he will know from our Online Safety Bill, we expect companies to use age-verification technology designed to prevent children from accessing services that pose a high risk of harm, including online pornography, as a way of protecting them. The noble Lord will be aware that the Government made changes to the Bill in Committee to reinforce the safety of children online.

A number of your Lordships—the noble Baronesses, Lady Donaghy, Lady Barker, Lady Ludford and Lady Armstrong of Hill Top, and the noble Lords, Lord Hussain and Lord Loomba—spoke about our international work. The Government remain committed to returning to spending 0.7% of GNI on this budget when fiscal circumstances allow. The international women and girls strategy commits the FCDO to at least 80% of its bilateral aid programmes having a focus on gender equality by 2030.

The noble Baroness, Lady Armstrong, pressed me to comment on our work on women and girls in the strategy. In terms of both what we want to do and how we want to do it, the “what” focuses on education, empowering women, championing their health and rights, and ending violence towards women. However, by creating conversations that change the narrative, we also lead by example and through knowledge. I thank the noble Lord, Lord Loomba, for his work on widows, particularly in India.

The noble Lord, Lord Hussain, asked what the Government are doing to support Kashmiri women in prison. I am sure that he is aware that we engage with the Governments of both India and Pakistan, and raise our human rights concerns with them whenever we have those engagements. We are also working closely with civil society organisations and NGOs in both countries.

Women in Afghanistan was an issue raised by many noble Lords, including my noble friends Lord Shinkwin and Lady Fall, but my noble friend Lady Helic left me with a number of specific questions. I know that she is familiar with the two routes available to Afghan women—the Afghan citizens resettlement scheme and the Afghan relocations and assistance policy, which is obviously for staff who were previously employed locally. The Afghan citizens resettlement scheme will see up to 20,000 people from Afghanistan and the region resettled to the UK in the coming years and is not application based. Eligible people will be prioritised for resettlement.

On providing aid to women and girls in the region, the UK has disbursed £229 million in aid for Afghanistan since April 2022 and £515 million since April 2021. Our aid provides life-saving support in incredibly difficult circumstances, of which I know my noble friend Lady Helic is well aware. We are continuing to support the delivery of education and healthcare services, and to tackle gender-based violence.

My noble friend asked what work we were doing with allies around the world to influence the Taliban and promote gender equality. She will understand much better than I do the scale of that task, but we are working with the international community to press the Taliban to reverse its decisions and to honour the commitments that it has previously made. We do that through the G7, the G20 and the UN. Finally, on supporting long-term social change in Afghanistan, we have worked very hard and been instrumental in unlocking more than £1 billion of funding held within the Afghanistan reconstruction trust fund, supporting agriculture, education and health.

My noble friend Lady Fall asked about support for Ukrainian children in our schools. We are immensely proud of the support that we have provided to Ukrainian children and are honoured to do so. We have welcomed more than 20,000 children into our schools.

I hope the House will bear with me if I run just one minute over to do justice to your Lordships. In terms of women’s economic empowerment, the noble Lords, Lord Monks and Lord Watson, and the noble Baroness, Lady Chakrabarti, all raised issues of the gender pay gap, which has fallen significantly, with more than 2 million more women in work since 2010 and a higher percentage of women on FTSE 350 boards than ever before. The noble Baroness, Lady Chakrabarti, will be aware that we are obliged to carry out a review of the gender pay gap regulations after they have been in force for five years. That is something we are doing, and we will take time to consider and publish our views on the evidence.

More broadly, I thank all women across this House for their work in encouraging women into public life, particularly my noble friend Lady Jenkin, who has been remarkable in this area. The Government will continue to work across the House, and across both Chambers, to try to address the growing scourge of online abuse.

I will endeavour to write promptly on any of the points I have failed to cover today. It is truly a great privilege to have been able to close the debate. We have heard from women across the House who have found their voices and their place in the world, whether in business, politics, medicine, STEM, education or more. We have heard about the women who inspired us all. We have also heard about the women who lost their voices and their lives—and, all too often, at the hands of men.

I apologise for the weak tear ducts, but I close by remembering the women and girls who are currently being silenced all around the world, particularly in Iran and Afghanistan. We honour their courage; we are with them in spirit and solidarity. With those women in our minds and hearts, I commend the Motion to the House.

Motion agreed.