Non-Domestic Rating (Multipliers and Private Schools) Bill)

Lord Mackinlay of Richborough Excerpts

Consideration of Commons amendments and / or reasons
Wednesday 26th March 2025 Lords Chamber

[Lord Moynihan (Con)]

My Lords, I declare my interests in sport as set out in the register.

I have spoken in Committee and on Report about the damage that retaining Clause 5 will do to the sporting success of many talented young people in the UK who gained admission to independent schools from the state sector through sports bursaries and scholarships. The reason for this was that, in response to parental demand, many independent schools have invested in state-of-the-art sports facilities, top-level coaches, and the sports psychologists, nutritionists, physios and support staff whose presence in many of our independent schools have delivered success at international and national level, while offering those facilities, out of hours and during the holidays, to local communities through their dual-use policies.

The costs imposed by VAT on school fees, increased by higher national insurance contributions and now by business rates, means that to balance the books those schools which survive will have to reduce the many sports scholarships and bursaries currently available to talented young people. Talented young people from a wide range of backgrounds in the maintained sector would otherwise never have access to facilities and coaching expertise of this type.

To demonstrate the scale of the support, I previously drew the Minister’s attention to 14 athletes on Team GB at the Paris Olympic Games who came from Millfield School, 13 of whom came through its means-tested financial support mechanism. Those athletes brought home seven Olympic medals and one Paralympic medal—four gold, three silver and one bronze. The career path for our talented athletes has provided opportunities for thousands of young sports men and women who could not afford to go to independent schools and benefit from their sporting facilities without the bursaries and scholarships on offer. At the Paris Olympics in 2024, 33% of Team GB’s medallists had been given the chance to attend independent schools, many of whom had their fees paid in part or in whole through means-tested bursaries and scholarships.

The statistics prove the point. I would not be worried if facilities in the state sector were a substitute; that they are not is not a party-political point. Sports facilities at local authority level and state school level have been in decline for years. We had a magnificent Olympic and Paralympic Games in London in 2012. The regeneration of the East End of London was a resounding success, but we did not leave a sports legacy to London or to the country. Playing fields continue to be sold; public swimming pools are closed. Even Sport England has this month lost its statutory ability—which has had a great effect in keeping playing fields open—to appeal against the loss of sports facilities removed as part of the proposed planning reforms.

I see no evidence that these arguments were addressed in another place yesterday. By raising them today, I urge colleagues from across the House to vote for this amendment and protect the opportunities afforded to many of our aspiring young Olympians and Paralympians. I ask noble Lords not to deny those young people the same number of bursaries and scholarships that independent schools have been able to make over many years. I hope that every Member of your Lordships’ House will bear these arguments in mind when they consider whether to vote to retain Clause 5 in its current form.

[Lord Mackinlay of Richborough (Con)]

My Lords, I have not to date spoken on this Bill, but there are couple of matters which need to be aired regarding the history of charity. I am a director of a charity, and my daughter attends a private school—let us get those on the record.

The history of charity in this country goes back a very long way, with a particular flourishing during Elizabethan times. The charities of that era were often health related, certainly education related and often to do with hospice and almshouse care—of course, this Government have decided to raise a jobs tax on hospices, which we have been discussing this week. The concept of charity was founded very much on education.

Through the latter end of my illness, my wife would drive me home at weekends for home visits. We found all manner of routes through south-east London to avoid the worst of some of Mayor Khan’s blockages that have been created through London—it did not stop us from paying the ULEZ, of course. On one of the small roads, I came across a charity called the Portuguese speakers community centre. I thought, “Well, well, well, there is such a thing”. I am sure that it does the most amazing work. On most high streets, we see a variety of charities. Lots are to do with animal support—the PDSA, Cats Protection and all manner of other charities. They all do very good work. However, they were not envisaged as the charities of the day when the big flowering of charities came to pass in Elizabethan times, but education most certainly was.

So, for the first time in the history of this nation, we are deciding to have a two-tier charitable system. Whereas that charity route of old—education—is no longer deemed of charitable-worthy status, the Portuguese community centre, for instance, which I am sure does good work, is. It is a strange day that we pass through with this legislation—it is a very sad day. The amendments in Motion Q1 will at least give the Secretary of State pause for thought and an easy way out in the future. I almost guarantee that those thoughts on raising lots of revenue will never be realised. Schools will close and, because of the VAT increase, children will move to the state sector and be a cost to the state in their education. Let us note this day and heed what is being told to the Government: “You will rue this decision”.

[Baroness Grey-Thompson (CB)]

My Lords, I rise to support the noble Lord, Lord Moynihan, and ask that noble Lords note my register of interests. I have not spoken on the Bill before, but we need to consider the impact on sport.

Over many cycles of Olympic Games, many of our medal-winning athletes have gone through the independent school sector and a significant number will have been supported with scholarships. The access it gives to high-quality coaching and facilities, and balancing education with that pathway, is important.

The Sutton Trust has noted that private schools are overrepresented among the medal-winning athletes that we have. Its data probably does not support the argument that I am about to give. The noble Lord, Lord Moynihan, was right that 33% of Team GB’s medallists at the Paris 2024 Games went through private schools—down from 40% for the Tokyo Games. Yes, that compares with just 7% of the general population. Is it right that it is disproportionate? No, it is not, but the independent sector offers amazing opportunities for athletes to succeed.

The reality is that there is so much work that we need to do in our state schools. They should provide access to good-quality sports facilities and coaching and care about our children’s education, but the reality is that we are still quite a long way from that. We already know that the state sector is struggling to deliver sports such as cricket; the ECB has noted that. We need to think about the consequences in the short term for our medal-winning athletes and our place on the medal table.

I did not think I that I would be in a debate defending independent schools, but it is important that we are able to offer the right support to young people. A lot of young people on scholarships in independent schools will lose out on the chance to represent the UK. That is not right for the foreseeable future of our elite sporting environment.