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

Lord Caine Excerpts

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

[Lord Caine (Con)]

My Lords, I will speak briefly in support of the amendment in the name of my noble friend Lady Barran. I have not taken part in any of the debates around independent schools in your Lordships’ House, and, for the record, I am entirely the product of the state education system in the east of Leeds. However, I have been prompted to get to my feet today on the back of the very sad news that was announced yesterday of the closure of Fulneck School, in Pudsey, Leeds. It was established in 1753, during the reign of King George II, and will now close its doors for the final time in July.

Fulneck, for those who do not know, is famous for educating, among others, the great Liberal Prime Minister Herbert Asquith and the late great Dame Diana Rigg—otherwise known to some as Mrs Peel—along with a very close friend of mine, who was absolutely devastated to hear the news this morning. Fulneck is part of a Moravian settlement in Pudsey, which includes a grade 1 listed church and many other listed buildings. It is a unique part of the heritage of Leeds and the broader West Riding of Yorkshire, a large part of which will now be lost for ever.

I will not argue that the imposition of VAT is the only reason for the closure of the school; in fact, the school’s own statement refers to problems of falling numbers in recent years. However, the statement points to significantly rising administrative costs. Surely the broader point here is that, for a large number of small, independent schools across the country that have been struggling to keep their heads above water in recent years, the imposition of VAT and increases in employer national insurance are policies that will sink them.

As a result of the closure, 300 or so students will now have to be educated elsewhere within the locality; most, presumably, will have to find places within the state sector. I note that the school lies within the parliamentary constituency of Leeds West and Pudsey, which is represented by the Chancellor of the Exchequer. I support my noble friend.

[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.