Non-Domestic Rating (Multipliers and Private Schools) Bill

Lord Moynihan Excerpts

Committee stage
Thursday 27th February 2025 Grand Committee

Moved by

[Lord Moynihan]

67: Clause 5, page 5, line 40, at end insert—
“(5A) An institution is not to be considered a private school for the purposes of sub-paragraph (3) if 10% of students are in receipt of bursaries or scholarships for sporting excellence.”

[Lord Moynihan (Con)]

My Lords, in moving Amendment 67 I will also speak to Amendment 69 in my name. Both highlight the importance to this country of the contribution made by the sports facilities of independent schools and the expertise of their coaches, support staff, groundsmen and groundswomen in the independent sector. Both amendments seek to find ways of protecting and promoting opportunities for young people in sport. Both reflect the deeply damaging effect that the combination of the imposition of VAT and rates, and the increase in national insurance contributions, will have on the future success of British sport at all levels.

I declare my interests in sport, which are set out in the register. I will today draw on my time as a former Minister for Sport, chair of the British Olympic Association during London 2012 and, more recently, my three years as chair of governors at Haberdashers’ Monmouth School and now as sports ambassador for that school, which is in support of the outstanding leadership work undertaken by the great Welsh rugby international, Richie Rees, director of the Haberdashers’ Monmouth School sports academy, who pilots the school’s successful sports programme.

In speaking to these amendments, I contend that the Government should encourage state school sport wherever possible and do everything they can to encourage the independent sector to promote opportunities for sport in its schools, and, most importantly, for school sport with the local clubs and communities that use their facilities. The strength that these programmes generate at the base of the pyramid is what, at its apex, delivers our world-class, leading sportsmen and sportswomen. I appreciate that in doing so, I need to justify the importance of sport in schools. That is not difficult. We live in a time of growing obesity. School sport promotes physical health improvements, develops social skills, encourages teamwork and is central to learning how to win and how to manage losing. Sport boosts self-esteem and confidence; it teaches discipline and resilience; it is a major mitigating factor against absenteeism in schools; it promotes optimism, generates pride and positively impacts on academic performance by enhancing focus and concentration.

The phrase “Mens sana in corpore sano” is as relevant today as it was when Juvenal wrote it. Our young people should be encouraged to be not only physically fit and well but mentally sound and balanced, and sport provides the framework for a healthy mind in a healthy body. It teaches resilience, yet the state sector in this country lags close to the bottom of the global league for engagement in sport, adequately trained PE teachers and sports facilities, many of which have aged beyond their life expectancy. This is not a party- political point; a steady decline applies to all Governments over the past 20 years. Local authorities have consistently fallen behind in the provision of, for example, swimming pools, sports facilities and open spaces. Sports is a discretionary line item spend in local authorities and, inevitably, has taken the first hit in budget savings.

I emphasise to the Committee that the independent sector needs government support, not state-imposed business rates as in Clause 5. I draw the Committee’s attention to the contribution that independent schools make to sport. At the Olympic Games in Paris in 2024, 33% of Team GB’s medallists attended independent schools. In Tokyo in 2021, 40% of Team GB’s medallists attended independent schools. In Rio in 2016, it was 31% and, in London in 2012, 36%. Yet only 7% of our children go to independent schools, so top Olympians are over four times more likely to have been privately educated than the UK population overall. For me—and, I am sure, for the Minister—the tragedy behind those figures is the reality that there are so many talented young people in our state schools who are capable of representing this country at national and international level, but whose talent in never recognised nor developed, who have no access to sports facilities and good coaching and who miss the opportunities that every country from New Zealand to Poland, from France to Germany and from China to the US provides.

As my friend the Minister—he is a friend in sport—knows, in Burnley, the provision of and opportunities for sports takes young kids off the escalator to crime. It is relevant to the work of every department of state, from prison management to foreign policy, from health to education. Yet a majority of state pupils aged 14 to 16 —over 50%—are now doing only an hour of sport a week in school. The figure is worse still if you take into account the time it takes for many pupils to reach the lesson and get changed. A third of our children cannot swim. British school sport is in crisis.

Sadly, this is not a growth section of the Bill, but another example of where we drive yet another nail into the delivery of sport in independent schools. The reason that is so important is that independent schools have, rightly, had to make sure that their facilities are open to local communities and that the local population can come to use those facilities in their catchment areas. For all the independent schools now faced with the costs of VAT and rates, they will have to cut costs and reduce sports bursaries and scholarships to meet the savings demanded by government.

This will negatively impact on the delivery of sport in the UK. It will have a major impact on our sporting success, not just in terms of medals and national representation, but in the development of sports coaches, pupils and support staff who move out into the community—into the fields of participation—and on the development of excellence in a sector that has seen a steady decline in participation and growing obesity in society. To level the playing field more resources must be invested, both in state schools and though support for the work that independent schools do with communities. The solution is not to jeopardise the success of our young, up-and-coming students who benefit from sport and facilities in the independent sector.

We must reflect on the fact that many children are failing to meet the UK Chief Medical Officer’s guidelines for sport and physical activity. It is recommended that children participate in an average of 60 minutes of sport and activity every day, either in school or outside, but 50% of them are missing the target, while 29.6% are not even averaging 30 minutes of activity per day. The total hours of PE taught in English state schools annually has dropped by 41,000 hours since the 2012 Olympics—a decrease of 12%. There has been a 7% reduction in PE teachers in England in the same period.

This Bill will, I contend, worsen the situation since support for sport bursaries, free access for local communities to many independent schools’ sports facilities and the dual use of such facilities will have to be cut in order to balance the books after the imposition of Clause 5 and VAT on school fees. This will impact all independent schools.

Let me give the Minister the well-known example of Millfield School, which delivered 13 out of the 14 Millfield-educated and trained British athletes on Team GB through its means-tested financial support mechanism. The school funded 13 out of 14 of the Millfield-educated and trained British athletes on Team GB for the Paris Olympic Games who brought home between them seven Olympic medals and one Paralympic medal: four gold, three silver and one bronze. All received means-tested financial support from the school during their time at Millfield, but how can that continue? Where will the money come from when the Government themselves predict a significant fall in children going to independent schools and urge those independent schools to make major cuts to their budgets?

It would be fine if, when we looked at the country as a whole, the Government could stand up and say, “Don’t worry, the state sector is doing fantastically well in the provision of school sport”. Sadly, the reality is that that is not the case. As I say, this is not a party-political point. It is a tragedy that more than half of children aged between 16 and 18 are now estimated to be doing no school sport. Swimming is in crisis. Last year, Sport England found that 30% of children cannot swim 25 metres unaided when they leave primary school, a 7% increase on 2017-18. More than 400 public swimming pools have closed since 2010. One-third of primary schools now deliver 10 or fewer swimming lessons to pupils before they leave. The many children who have accessed independent school facilities, at the cost of those independent schools, will now find that those independent schools have to make significant savings. I agree with Sir Keir Starmer, who bemoaned that children were being locked out of emulating their heroes last year due to the lack of PE provision. The dual use of independent schools’ sports facilities is critical to addressing that issue but it is under threat, which will make matters worse.

People who are not physically active as children are, in turn, far less likely to be active in later life. The crisis in school sport is contributing to the long-term obesity epidemic. By the age of 11, 22% of children are already obese, which increases to 26% among adults. This measure, coupled with VAT on school fees, will make the outcome worse. Inactive children become inactive adults, who then become inactive parents. We need to reset children’s lifestyles if we want to change the nation’s health. If we did that, we would save far more than the VAT, rates and national insurance contributions proposed by the Government. This is not a problem that has emerged over the past six months; I fully recognise that. The London Olympic Games saw an unprecedented urban regeneration legacy in the East End of London and a great Paralympic Games, but it saw little to no sports legacy, which I have consistently argued for both inside and outside the House.

These two amendments seek to stem the tide of dual use in independent schools and to move away from that tide going out by increasingly looking to a solution that ensures that we can protect and support school sport in independent schools, especially where it reaches out to local communities, local clubs and state schools, which come in to use those facilities. The Government are telling all independent schools to cut costs, make savings, and put up fees to balance their books. Would the Minister be prepared either to sit down and think through finding a way of supporting British sporting success by accepting one of these amendments or to take them away to see what can be done to support British success in sport in independent schools and, through dual use, in communities that desperately need to rely on such schools for the use of their facilities in future and that reach out, as many independent schools have had to do, to the benefit of young children in the community who simply do not have access to sports facilities except in independent schools?

Dual use has been a magnificent development in independent schools over the past 10 to 20 years. It is now firmly embedded, but it is under threat because it is so costly for schools to continue to have that dual use, free in many cases. I was recently at Tonbridge School and noticed that it has a new running track put down every four years. The reason it is every four years is because it has double the number of people using it because the local community come to use it. Now, it says it may have to make savings by resetting it every eight years and reducing the number of people who use it.

If we took one of these amendments or worked hard together to resolve examples like this, it would be to the benefit of sport in this country, in the independent sector and, just as importantly, in the state sector as well. I beg to move.

--- Later in debate ---

[Lord Moynihan (Con)]

It has been a pleasure to have an exchange with the noble Lord, Lord Khan. I congratulate him on his love of and belief in cricket. I must say that one of the great heroes of Burnley, the noble Lord’s hometown, is Jimmy Anderson, and he, at his best, would have been very useful yesterday, when we were getting beaten by Afghanistan. He was no doubt inspired by Jimmy Anderson. Just for the record, the Minister very kindly mentioned the silver medal I got, but, although I may be looking old, I actually got it eight years later—not in Munich but in Moscow. It takes its toll, this place, after 20 years. I wish him well with Burnley’s promotion prospects. He is sitting alongside a very fine, assiduous Whip, who has heard quite a lot of football in the last couple of months. I wish him well but please, go easy on Leeds, because that is my club and we want to make sure that we get there first.

On a serious note, I appreciate the Minister’s comments about the importance of public benefit and charitable status and that he is seeking to continue to expect that to be delivered by independent schools. It is incredibly difficult for independent schools that now face up to 25%, if you put together the VAT, the cost of national insurance and the impact of this Bill. It would be difficult if you were to slap 25% on the costs of any business. Many parents find it exceptionally difficult to pay the fees to go to an independent school and get the benefit. It is difficult for the Government to turn around and say, “We are going to increase those fees by 25% by state diktat”, and still expect schools to do everything they are doing with the local community, at their cost. So, I am grateful to the Minister for saying that he will have a conversation, take this away and just see if there is something we can do, particularly where independent schools work effectively with local communities and provide opportunities for local children to use the facilities and often benefit from coaching expertise. We need to continue to support that and it is very difficult to see how we can support it at the moment, when around 25%, on average, will be lost to the balance sheet of those schools.

I look forward to meeting the Minister on that subject but, for the time being, I beg leave to withdraw the amendment.

Amendment 67 withdrawn.

Non-Domestic Rating (Multipliers and Private Schools) Bill

Lord Moynihan Excerpts

Report stage
Tuesday 18th March 2025 Lords Chamber

[Lord Black of Brentwood (Con)]

My Lords, I will speak to Amendment 26, in the name of my noble friend Lady Barran, to which I have added my name. I support all the amendments in this group, especially Amendment 25 from my noble friend Lord Lexden, who put his case so powerfully. It is shameful that the Government refuse to recognise the extraordinary role that independent schools play in the care of those with special educational needs. If, even at this late stage, they do not agree to the modest suggestions put forward by my noble friend, they will stand charged with putting the interests of party dogma ahead of the needs of some of the most vulnerable in our society.

I declare my interest as chairman of governors at Brentwood School, president of the Boarding Schools’ Association and Institute of Boarding, and, for this group, chairman of the Royal College of Music.

When I spoke in Committee on the issue of gifted arts students, I made one simple point: in an economy that is flatlining, the creative economy is one of the few areas of sustained economic growth with unlimited potential to expand even further. It provides hundreds of thousands of jobs, is part of a huge export market and contributes billions in revenue. We should nurture it, not attack it. Music, as well as being a huge British success story in its own right, powers it by supporting so much of its rich tapestry, including film, television, computer games, drama, advertising and so on. In turn, its future depends absolutely on first-class music education in schools, conservatoires and universities, providing a pipeline of talent into the sector. Without that continuing education, and new musicians and new teachers entering the profession, music dies. It is as simple as that: no pipeline, no music.

But music education—where it all starts—is in real crisis. I acknowledge that this began under the last Government, but we have yet to see any signs of change, despite the new Government having been in office nearly 10 months. From primary schools right the way through to the end of full-time education, music remains under threat as never before.

With music education already in such crisis, why on earth would the Government want to make matters even worse by jeopardising the very real achievement of specialist music, dance, choral and drama teaching in independent schools? The amendment from my noble friend reflects the success and importance of the Music and Dance Scheme schools and their unique contribution, and that of our leading choir schools, to artistic life in this country. Nearly 1,500 pupils—the stars of tomorrow—receive means-tested bursary support to attend renowned specialist performing arts schools which are the envy of the world. Their position is already under threat because most parents are now charged VAT on their fee contributions, with only a small number receiving increased funding to offset it. That is bad enough, and we should not pour fuel on the fire.

This amendment is based on a proposition that is very simple for even the most dogmatic of minds to understand. The future of these schools, which are already facing such pressure, and their continuing ability to provide world-class teaching can be made more secure if they are protected from full business rates. The Government say that their entire agenda is focused on growth, yet here we have a policy that is absolutely anti-growth. Even on the number one item on their agenda for this Parliament, their opposition to independent education is so all-consuming that they are prepared to jeopardise it on the altar of ideology. I hope that even now the Government will see the strength of these arguments and accept my noble friend’s amendment.

[Lord Moynihan (Con)]

My Lords, I rise to speak to Amendments 27 and 29 in my name, and I declare my interests in sport as set out in the register. I thank the Minister for his sympathetic response to my amendments in Committee, our subsequent conversation and the clear personal priority that he attaches to sport, particularly for disadvantaged communities, and the way it can bring them hope and opportunity in life.

There was a time when this Chamber had many contributors to any debate that impacted the world of sports policy. One notable absentee, who retired from the House three years ago, is my noble friend Lord Coe, and I am sure that the whole House will want to take this opportunity to wish him well as he seeks election on Thursday to become the first British president of the International Olympic Committee.

I made my case for these amendments in Committee. Both amendments highlight the lifeline received by many of our top sports men and women who have benefited from the sports bursaries and scholarship policies of independent schools. Today I also make the case for the widespread community use of the many outstanding sports facilities of independent schools, the expertise of their coaches, their support staff and the groundsmen and groundswomen who coach and support their pupils and offer their facilities and services to local communities through dual-use campaigns. Amendments 27 and 29 would provide protection for schools where 10% or more of students receive sports scholarships or bursaries and separately would discount all sports facilities from schools’ business rates.

These proposals reflect the commitment of independent schools to spreading opportunities in sport through fee assistance schemes and public benefit partnerships, including sharing facilities and coaching staff. Sporting opportunities are a key focus for some independent schools, and sports awards form part of the £1 billion in fee assistance delivered by independent schools in the last academic year. What is really important is that more than half the money is means tested, ensuring that support is targeted where it is most helpful, yet the imposition of VAT and the increase in the minimum wage and national insurance contributions are now compounded by the proposed imposition of business rates. Schools will inevitably have to cut back to balance their budgets, and the casualties will be the opportunities for sport and recreational activity for many dual-use local community clubs after school hours.

In moving the first of my two amendments, I drew the Committee’s attention to the contribution that independent schools make to elite sport as well. At the Olympic Games in Paris last year, 33% of Team GB’s medallists attended independent schools. At Tokyo in 2021, 40% of Team GB’s medallists attended independent schools. At Rio in 2016, it was 31%. At London 2012, it was 36%. Yet only 7% of our children go to independent schools, so top Olympians and Paralympians are more than four times more likely to have been privately educated than the UK population overall because of the bursary and scholarship policies on offer.

Let me give the specific example of Millfield, which delivered 13 of the 14 Millfield-educated and trained British athletes on Team GB through its means-tested financial support mechanism. The school funded 13 of the 14 Millfield-educated and trained British athletes on Team GB for the Paris Olympic Games, who between them brought home seven Olympic medals and one Paralympic medal: four gold, three silver and one bronze. All received means-tested financial support from the school during their time at Millfield, but how can that continue? Where will the money come from when the Government themselves predict a significant fall in children going to independent schools and urge those independent schools to make major cuts to their budgets? Where will the scholarships and bursaries be paid from?

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

Lord Moynihan 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.

[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”.