Non-Domestic Rating (Multipliers and Private Schools) Bill

Lord Lexden Excerpts

Consideration of Commons amendments and / or reasons
Tuesday 1st April 2025 Lords Chamber

[Lord Thurlow (CB)]

My Lords, it has been an interesting and lively debate through all its stages, covering the many aspects of the broad landscape of this Bill. I thank all who took part and supported my amendments from across the House right through to this final stage. I add my thanks to the Minister and his team, who have spent a good deal of time on a number of occasions, willing to engage with me to try to find compromise and a way through the complicated and difficult elements of the Bill, which have become quite technical and needed a deep dive.

I feel a sense of real regret. The Government have missed a real opportunity to deal once and for all with the injustices heaped on the small high-street retailers, which continue to subsidise the rates paid by these mammoth non-high-street retail fulfilment centres: the internet operators exclusively—not the ones on the high street that have fulfilment centres but the ones that are not on the high street. It is tragic that this opportunity has been missed. It is a wrong that the Bill could have put right. The Minister’s proposals address aspects of this, but possibly not for many years to come. The digitisation process of non-domestic rates, which we have discussed, is in hand and planned for 2028, but I wonder whether, like many other government initiatives, it will take many years longer than expected. What a waste. It was not too difficult—an opportunity missed.

It is not my desire to prolong the debate, notwithstanding the reasons cited for refusal in the other place, which left the door open. I think we have done enough, and HMG should not be frustrated in their manifesto items. I thank the Minister for his opportunity to continue a dialogue going forward, which I would like to engage in if I have not been put in front of the firing squad as a hereditary before that time comes. I will not press my amendment.

[Lord Lexden (Con)]

My Lords, I will say a few words about independent schools. Throughout, the Government’s position has been in essence that we have to take away—they say—some of the resources of 7% of our country’s schools to enable 93% to make improvements. State schools will gain little or nothing from Labour’s tax raid, which will simply harm independent schools. Throughout our debates, I have tried to provide a voice for small independent schools, as president of the Independent Schools Association, whose 720 members are, for the most part, cherished small local schools. As I have said several times, 40% of independent schools have under 100 pupils. Their future is now in jeopardy, thanks to this Government. Ministers will be held to account here in Parliament and in the country at large for the damage their policies will do to these schools, which contribute so richly to our communities in spheres such as special needs, music, the arts and sport, as I and a number of noble friends have shown in these debates. Labour’s discriminatory tax burdens threaten their very survival.

[Lord Khan of Burnley (Lab)]

My Lords, I thank all noble Lords who took part in this short debate, as well as all those who have dedicated their time and efforts to scrutinising this Bill. I am especially thankful to the noble Baronesses, Lady Barran, Lady Pinnock and Lady Scott of Bybrook, the noble Lords, Lord Fox, Lord Jamieson, Lord Thurlow, Lord Moynihan, Lord Lexden, Lord Black of Brentwood, Lord Storey and Lord Shipley, and the noble Earl, Lord Lytton. The time and consideration noble Lords have given to this Bill are greatly appreciated and, while I acknowledge that it is not always possible to see eye to eye, I hope they understand the appreciation I have for their efforts and expertise. I am grateful to the noble Baronesses, Lady Barran, Lady Pinnock and Lady Scott, and the noble Lord, Lord Thurlow, for their agreement not to insist on these amendments.

Through the Bill, we are beginning to deliver on our ambition to transform the business rates system. In taking our first vital step on that path, we are ensuring a sustainable, funded, permanent tax cut for retail, hospitality and leisure properties that will be provided from April 2026. Furthermore, the Government are delivering on their commitment to break down barriers to opportunity by removing the business rates charitable relief from private schools, to help raise vital revenue to support the delivery of the Government’s commitments to education and young people. I am aware that the noble Baroness does not agree with the Government on this matter, but I hope she understands our position, and that it is vital that we take the tough but necessary decisions to ensure that the same opportunities are afforded to all children, regardless of where they come from or their financial background.

The noble Baroness, Lady Pinnock, invited me to write a letter on a question. I am going to reject that invitation because I have the answer for her now. She asked specifically about the powers to exclude classes of properties from the higher multiplier if we wanted to in future. We have the powers in Clause 3. Specifically, the powers referred to in that clause allow us to exclude classes of hereditaments from the higher multiplier.

I thank the noble Lord, Lord Thurlow, for his remarks. I am aware that he is concerned about the timetable for the digitalising business rates project. The solution to that problem lies in the linking of business and property data, and in the project itself. I look forward to engaging with the noble Lord, along with officials. Once again, I thank him and all noble Lords for not insisting on their amendments.