Non-Domestic Rating (Multipliers and Private Schools) Bill

Imran Hussain Excerpts

2nd reading
Monday 25th November 2024 Commons Chamber

[Imran Hussain (Bradford East) (Ind)]

I will base much of my contribution on the latter part of this Bill, which deals with private schools. However, before I go into that, I welcome the changes that the Minister is proposing through this legislation that will massively benefit our high streets. The reality is that the past 14 years saw our high streets devastated by the previous Government. In particular, I welcome the permanent lowering of business rates in the retail, hospitality and leisure sectors, which I think will be a huge boost to our high streets.

On the schools part of the debate, it would be remiss of me not to start by mentioning the 14 years of brutal Tory cuts that have led us to this moment, in which state schools are hanging on by a thread. They were abandoned for 14 years by a Government who brought zero investment to schooling—who simply watched the sector struggle through the covid-19 pandemic and left school buildings laden with asbestos or crumbling concrete. They knew that teachers were paying out of their own pockets for school supplies and food for hungry students, but instead of supporting them, the previous Government chose to attack public workers who were close to breaking point. Teachers have long paid the price, leaving the education system in droves, and can we blame them, given the treatment they have had over the past 14 years? In my constituency of Bradford East alone, 95% of schools have faced cuts to per pupil funding—cuts of £15.6 million since 2010. That is over £680 less per pupil.

As such, it is refreshing to finally see a Government share my values and my commitment to not leave state schools at breaking point, with a clear plan to deliver a much-needed lifeline directly to those schools by ending private schools’ eligibility for business rates charitable rate relief and VAT relief. The Minister was right to note that VAT relief is dealt with in a separate piece of legislation that is yet to come before this House, but both are connected in this debate, so I will also make mention of the VAT relief that private schools currently enjoy.

Frankly, the £1.5 billion that will be raised will go towards improving the education and life outcomes of all children by funding the recruitment of thousands more teachers and much-needed breakfast clubs for children. Many will welcome the Government ending the discount on education that the richest schools and the richest parents currently get, because what kind of Government arrange concessions for the wealthiest while working-class children go hungry as they learn? Despite some of the arguments we have heard and will hear, that is not a society that champions freedom of choice; it is one where the wealth bracket of someone’s parents, their postcode and their school determines the success of their life. If we let this inequality entrench itself any longer, we will never be able to end it.

I fully understand and endorse the spirit of the decision to close the tax loophole on private schools, but I also note the growing fear and concern in my constituency and other constituencies, particularly for the smaller independent and faith schools that, as we should also recognise, provide excellent and often specialised schooling for children. That is why I am pleased that the Government have confirmed that, where private schools are charities that provide education for children with education, health and care plans, they will retain the charitable relief, as they rightly should. My view is that the impact on smaller independent and faith schools should be considered too, and I firmly believe that it is not in the spirit of this legislation to punish them. We should draw a clear distinction.

[Graham Stuart]

The hon. Gentleman is quite right to highlight the impact on small schools, which often have pretty low fees, so is he going to vote against the Bill tonight? The spirit of this legislation is to hit everything in the private sector, as if every institution was Eton, when he knows and we know that they are anything but.

[Imran Hussain]

The right hon. Gentleman is a brave soul because he often tries to defend the indefensible. He and I have often sparred between these Benches, but I would say to him that the place he comes from and the place I come from are distinctly different. I support the spirit and ethos of this legislation because I do not think it is right to give tax concessions and subsidies to the richest in society while the poorest of our kids go hungry in schools, so we come from different places. If he lets me make the point about where I am coming from about genuinely smaller and faith schools, I think it may at least answer part of his question.

When we talk about these schools, let us be clear that the average fees for some of the smaller schools are about £3,000, which is a great deal less than the average. They are maintained through community support and donations, and they are not in the same league as the Etons of this world. They do not reproduce class inequalities, and in fact they enable some of the most deprived communities to flourish. It would be a travesty if these schools were inadvertently punished by a decision designed to tackle the same inequality that some of them work so hard to break down.

If we do not consider the impact on them, the schools charging the lowest fees, which are often located in extremely deprived communities, will suffer and, sadly, the children whose working-class parents have often saved up for many years to get them into these schools will have to leave. Again, while I of course support children moving from that sector into the state sector, the reality is that 14 years of underfunding and under-investment have left us with serious capacity issues in the state sector, which is something Conservative Members may want to address when they speak.

I want to take this opportunity to recognise the massive contributions that faith schools make to society. I have a number of Muslim faith schools that do some excellent work in my constituency, and I want to put on the record my thanks to them for all they do. I must therefore urge Ministers to put in safeguards for smaller independent and faith schools, many of which, sadly, will not survive the policy in its current form. This can be achieved, because I believe the money that would be generated from the smallest of these schools is not at a level that would have an impact on the overall spirit of this legislation.

Madam Deputy Speaker, you are staring at me in a very telling way—although there is no time limit, I know that look. To conclude, I agree wholeheartedly that we cannot keep funding tax breaks for the top end of society while neglecting the rest. This is something I have spoken on and championed my whole life, and I believe this policy is the right one for our state schools. However, I must urge the Government to reconsider, and not let smaller independent and faith schools, which are some of the lowest-charging schools, to pay the price. I must urge Ministers to listen to their concerns, and put in safeguards as this and other relevant Bills progress through to their next stages.