Non-Domestic Rating (Multipliers and Private Schools) Bill

Kevin Hollinrake Excerpts

Report stage
Wednesday 15th January 2025 Commons Chamber

[Kevin Hollinrake (Thirsk and Malton) (Con)]

I thank the Minister, and indeed my shadow Ministers, the other Opposition spokespeople and all parliamentarians who have helped with the passage of the Bill, as well as the Clerks and officials—not that I would like to see the Bill progress any further. Aristotle, in his book “Politics”, over 2,000 years ago—[Interruption.]

[Madam Deputy Speaker (Caroline Nokes)]

Order!

[Kevin Hollinrake]

Over 2,000 years ago, Aristotle talked about deviant government. Alongside tyranny, he placed democracy. He said the risk is that, sooner or later, a Government will come along who represent only their own interests and those of their supporters, and that that Government will pursue the politics of envy. Let us see who the Minister’s supporters are. They are not the 12.6 million pensioners in this country, if we judge by the winter fuel allowance; not the 89,500 farmers whose livelihoods will be damaged by the family farm tax; not the 5 million businesspeople who will be damaged by the changes to business property relief, who employ 14 million people and pay £200 billion a year in taxes; not those people who live in rural areas; and not the families of the 550,000 young people who are in private and independent education. According to the Institute for Fiscal Studies—this is not scaremongering —90,000 of them may go back into the state sector as a result of the Government’s choices.

The Government have the gall to say that the fact that business rates or VAT do not apply to school fees is a tax break. It is no more a tax break than there being no VAT on housing, children’s clothes or food. Those measures are there because we should encourage people to pursue education, particularly those who scrimp and save to send their children into private education.

What about businesses? Businesses are suffering on the back of the employer national insurance rise of £25 billion a year, and are worried about the future because of the withdrawal of business property relief and agricultural property relief. The reality is that this Bill means a cut in support for many of those whom the Minister said he seeks to protect—people who work in the retail, hospitality and leisure sectors. The 75% discount is down to 40%. That will mean a tangible difference for the average pub of £5,500 a year. That comes on top of the huge increases in employer national insurance. Some 250,000 businesses will be worse off to the tune of £925 million. That is the tax charge he is placing on those businesses he says he seeks to protect. If he is honest with them, those taxes will go up again in April 2026. That is the reality of the situation.

What promise did Labour make before the election? They said they would scrap business rates completely—another broken promise. In their manifesto, they said they would change the balance between high streets and the online giants. That is not what the Bill does. The Bill also taxes breweries, airports, football stadiums and bricks-and-mortar retailers such as John Lewis, Sainsbury’s and Morrisons. That is the reality behind the Government’s changes: not scrapping business rates, nothing on the online giants and big taxes on many businesses. This is the politics of envy. It is the tyranny of socialism, and that is why we will vote against the Bill.

Question put, That the Bill be now read the Third time.