Non-Domestic Rating (Multipliers and Private Schools) Bill

Mark Sewards Excerpts

2nd reading
Monday 25th November 2024 Commons Chamber

[Mr Mark Sewards (Leeds South West and Morley) (Lab)]

I am pleased to speak on this Bill, which introduces the powers required to reform business rates. The Government are committed to a fairer business rates system that protects the high street and supports investment, and I welcome the fact that, in the Budget, the Chancellor set out her intention to permanently lower rates for the retail, hospitality and leisure properties that make up the backbone of our high streets, including Queen Street in Morley. Of course, this will be paid for by a higher multiplier for the most valuable properties.

However, I want to focus on another aspect of the Bill. I am a teacher, so I will talk about the provision that removes the charitable relief on business rates for many, but not all, private schools. This runs alongside our general election commitment to introduce VAT on private school fees, which we will be discussing on Second Reading of the Finance Bill on Wednesday. Both measures will, of course, increase funding for state schools.

During the general election campaign in July, and in the years leading up to it, I spoke to many parents in my constituency about the removal of tax breaks for private schools. Whatever their stance was on the policy, it was clear to me that every single parent I spoke to wanted the best for their children. It did not matter whether they considered themselves wealthy or not, whether they earned enough to send their children to a private school or not, or whether they lived in New Farnley or Thorpe. Every single one of them wanted the best education for their children.

Like, I suspect, almost every Member of this House, I want an amazing education for every child, irrespective of where they come from or who they are. That is exactly what Government Members are committed to delivering, using the revenue that this Bill, and the Finance Bill on Wednesday, will raise. We live in a country where 94% of all children attend state schools. I fully accept that the parents of the 6% of children who go to private schools have worked very hard to put them there, but you know who else works hard, Madam Deputy Speaker? The parents of kids who go to state schools. They work just as hard in their jobs and professions, yet some may never be in the financial position to send their children to private schools. Those children deserve the best too, so it falls on the Government to take the decisions necessary to improve our state schools.

State schools were plagued by so many crises under the previous Government. I saw the SEND crisis, the concrete crisis and the recruitment and retention crisis myself. In my previous job as head of maths at an inner-city school, if I put out a job advert I would be lucky if I got one applicant per position, and that was not just because of me. That must change, and we must raise the money to change it. Taken together with our commitment to introduce VAT on private school fees, which I accept we are not debating today, the extra net revenue raised from this policy will be essential to recruit the 6,500 new teachers we promised the electorate we would recruit in the general election. Every child deserves to be taught by a qualified teacher in every single subject.

Alongside our commitments to roll out free breakfast clubs, invest in SEND provision, rebuild the school estate, and increase per pupil funding in real terms, we are choosing to back our children, back our schools and back our country. Given the crisis in SEND, I welcome that those in private schools mainly concerned with the provision of the education of children with EHCPs will retain their charitable business rates relief. By removing the tax breaks enjoyed by most private schools, however, we can invest in our state schools. I will be able to say to the parents I spoke to in Leeds South West and Morley that we are giving their children the education they deserve. I will be able to say that we took decisive action to break down barriers to opportunity for all, and by voting for today’s Bill and the measures in the Finance Bill, I will be able to say to them that we found the funding to fund our state schools properly.

I know that Opposition Members are opposed to these changes. However, the Leader of the Opposition has also stated that she does not object to the positive parts of the Budget, including our investment in education, so my question to Opposition Members would be: “How are you going to pay for it? What exactly is your plan? We know what you oppose, but what do you support?” I think that the Conservatives have made something like £12 million of uncosted commitments every single hour since they elected their new leader. It is hard not to conclude that we are dealing with the same old Conservative party. It is no longer a serious party of government; however, Labour is.

Education is central to our mission of expanding opportunity, enriching our society and empowering our students to be the best possible versions of themselves. Whether they live in Churwell, Gildersome, East Ardsley or Lofthouse does not matter. This Labour Government are getting on with our mandate of delivering change and ensuring that all our children have the opportunity to fulfil their true potential.

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

Mark Sewards Excerpts

Committee stage
Wednesday 11th December 2024 Public Bill Committees

[Patrick Spencer (Central Suffolk and North Ipswich) (Con)]

Q Thank you, Mr Gerrard, for coming to give evidence. I want to put on the record my support for the premise of supporting community shops and stores and providing somewhere for people to go to do their shopping, but you mentioned that the provisions in the Bill will make distribution more expensive. Should we not be more concerned that home delivery, which we know is very important to vulnerable customers, will be more expensive as a result of the Bill?

Paul Gerrard: I think I am right in saying that the Co-op has the biggest quick-commerce business in the country. People order through aggregators and their orders are delivered from our stores; that is something that we have within our business model. Clearly, there will be costs going on to some of the depots and distribution centres and, to keep this revenue neutral, that will bring extra costs. I think that is the price of revenue neutrality. In the round, the impact on small stores and local shops will outweigh the potential risk around home delivery. As I said, we have a home delivery business; I think our quick-commerce business is the biggest in the country for small, quick deliveries. You are right to flag the risk, but in balance we would say that it is a positive thing that we are supporting brick and mortar shops as much as we can.

[Mr Mark Sewards (Leeds South West and Morley) (Lab)]

Q Thank you, Mr Gerrard, for your answers so far; they have been really insightful. We have Co-op shops in my constituency; the Co-op in New Farnley is virtually the only shop in that community. It was an absolute lifeline throughout the pandemic, and it is still a lifeline today, given that there are not other shops. We have had some questions about consistency. Obviously, the aim of the Bill is to provide consistency for businesses—especially those in retail, hospitality and leisure—by providing lower multipliers. You have said how beneficial it will be for about 92% of your properties. Can you talk more broadly about the potential benefits for other retailers?

Paul Gerrard: Certainly. I will make a couple of points. The last time I looked, about 95% of retail was microbusinesses with fewer than 10 employees. From the data I have seen, 98% of retail stores have a rateable value below £500,000. So this helps 92% of the Co-op but, from what I have seen, it helps 98% of the broader retail sector.

In my experience and the Co-op’s experience, high streets and precincts are not made by one business, but you often get one business beginning to drive vibrancy in that place. If one business can make it work, you attract custom and those customers might want to buy other things, so you will get a ripple effect from that. I think this will help communities, because it will make it much more viable for those small stores—either independent traders, or small stores of national businesses like the Co-op—to be in communities. I think the ripple effect will be significant. As I said before, there is a commercial thing there, but, as you alluded to, there is a hugely important social and community perspective as well.

[Mrs Sureena Brackenridge (Wolverhampton North East) (Lab)]

Q Thank you, Mr Gerrard. I am the Member of Parliament for cities and towns such as Wolverhampton and Willenhall, and we have a number of Co-ops and similar stores. I hear today that the Bill brings a welcome certainty and that the majority of Co-op stores will benefit from it. Co-ops and similar stores are important local employers and have been for generations within the community. I wonder whether you could share your thoughts on the impact of that.

Paul Gerrard: As I said before, local stores, of which the Co-op is an example, play a hugely important social role. They are also economic and commercial entities. We employ 55,000 people. The vast majority of my colleagues are either in stores—as in your constituency—or in our funeral care homes or our legal services business, so they are customer facing. What the Bill does is make our business model of small shops more viable, which means that we can continue to employ people.

It also means that we can continue to behave in line with our co-operative values and principles. As I said before, we have always paid the real living wage, with rates set by the Living Wage Foundation, and we have always sought to have a different kind of product in store, in terms of its ethical roots. The Bill will help us to continue to do all those things. On 21 December we will have done it for 180 years. The Bill will play a role in helping us, as will other measures that the Government have taken.

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[Lewis Cocking]

Q Have you asked your members that question?

Edward Woodall: We talk to them all the time about such questions. Perhaps it is something we can address in our written evidence to the Committee.

[Mr Sewards]

Q I will be brief. We have heard a lot about the cost of measures in the Budget, including in the Bill. Do you accept that there is some positive benefit in providing certainty to business—certainty that has been missing for a while? The measures in the Bill are designed to provide certainty over a longer period, but the measures in the Budget were designed for that as well.

Edward Woodall: On the Bill, I think I have said on a number of occasions that we welcome the fact that it brings more structure and that the overall principle is about long-term support for retail, hospitality and leisure businesses, and the areas in which they trade. In terms of that principle, we very much welcome the Bill; overall, businesses welcome greater certainty about how they invest into the future, so I welcome that in the context of the Bill.

[The Chair]

That brings us to the end of the time allotted for this witness. I thank Mr Woodall for his evidence.

Examination of Witnesses

Helen Dickinson OBE and Tom Ironside gave evidence.

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

Mark Sewards Excerpts

Committee stage
Wednesday 11th December 2024 Public Bill Committees

[Mrs Sureena Brackenridge (Wolverhampton North East) (Lab)]

Q My constituency of Wolverhampton North East does not have a city centre, but we have lots of cafés, brilliant restaurants, microbreweries and pub chains. What benefits will the Bill provide to those small businesses?

Kate Nicholls: If the deduction is applied to the maximum, it will result in a significant reduction in bills for all small hospitality businesses in suburban, neighbourhood and community locations such as your constituency, not just those subject to a cap and getting up to £100,000. Every single hospitality business in your constituency below £500,000—forgive me; I did not double-check, but I do not think you have any over that—will benefit from a permanent reduction in their business rates bills, which will help to redress the balance of their overall tax burden.

Sacha Lord: I would say that this really is a substantial lifeline for all those businesses. My concern is the period between April and when this legislation comes into force.

[Mr Mark Sewards (Leeds South West and Morley) (Lab)]

Q I have a brief question for Kate Nicholls. You mentioned earlier that business rates always come up as a barrier to extra investment. Please can you talk more about that?

Kate Nicholls: I chair the Mayor of London’s tourism recovery taskforce, to get London tourism going, and as part of that we look at foreign direct investment and real estate coming in. More broadly, the top 20 restaurant, pub and hotel chains are all private-equity backed, and most of that is FDI. The subject of business rates always comes up. Every single time you talk about inward investment into the UK, into property-based businesses, and about whether they should come here or go to mainland Europe or America, business rates are an inhibiting factor.

[The Chair]

Order. I am told that I have to cut you off. Sorry about that. That brings us to the end of the allotted time for this set of witnesses, so we will do a changeover. I thank the witnesses from this panel, and we will move on to the next one.

Examination of Witnesses

David Woodgate, Don Beattie, Barnaby Lenon CBE and Simon Nathan gave evidence.

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[Deirdre Costigan]

Q I was specifically asking for a comparison with the state sector. Do you think that redundancies will have a similar impact, a worse impact, or less of an impact in the private sector than in the state sector?

David Woodgate: Inevitably, if pupil-teacher numbers change, that will have a negative impact.

[Mr Sewards]

Q I understand that the Minister wanted to move on from this, but on your comments about aspirational parents, the simple fact is that all state school parents are aspirational, and in many cases they will never be in a financial position to send their kids to private school. I wanted to give you an opportunity to clarify that. Secondly, given that over 1,000 private schools closed between 2010 and 2024 without much media attention, how many private schools do you estimate will close as a result of the Bill?

David Woodgate: On your second point, we estimate that somewhere between 200 and 250 of our 1,300 schools are vulnerable to closure. They may look at mergers or other options—some might academise, for instance—but that is the kind of figure that we are looking at. I take your point about aspirational parents. We have to ensure that this does not impact on the bursary funding that is available for people from more disadvantaged backgrounds to get a place at one of our schools if they wish to go there. We have to ensure that, as far as possible, given these threats to our income, the funds available for bursaries are maintained.

[Mrs Brackenridge]

Q Thank you for coming and sharing your views and experiences. Business rate relief is in the scope of the Bill. I am a former deputy headteacher who worked across state secondary schools. Private schools, I say, are businesses. I had to juggle reductions and constraints across the budget, with departments such as the science department struggling to ensure that children have the full, hands-on experience—

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[Michelle Welsh]

Q Can the Minister set out the scheme that the Government are proposing to ensure that schools that principally deliver education for pupils with special educational needs will not face any additional burdens?

Jim McMahon: That is entirely the point, although perhaps it did not come out in the evidence sessions. A lot of the debate can be quite polarised—whether you are for or against private schools and the rest of it. When I was on the other side of the table, I was clear that I wanted to pull away from that and say, “Well, let’s just have a conversation based on the evidence.” What the evidence says is that there has been provision to ensure that those schools that are mainly or wholly for pupils with special educational needs will not be affected by these measures at all. Why? It is because we recognise that, within the wider school ecosystem, that provision is important in many communities and that many local authorities will support it. That is being provided in the Bill.

In the end, though, I would say that we need to rebuild mainstream provision. We all have constituents at their wits’ end because, after 14 years, mainstream provision has been allowed to erode to such a point that, in some places, it barely exists. We need to rebuild it, and the investment through the autumn statement begins that rebuilding work. It will take time. There is no button to press that resets 14 years in six months, but in terms of a statement of intent, £1 billion through the local government finance settlement for SEND provision is the start of that rebuilding process.

[Mr Sewards]

Q Queen Street in Morley is a fantastic high street, but it has a number of empty shops. I tried to acquire one of them when I was setting up my constituency office, but I was told, “No, no, no—they are about to be occupied.” Six months later, they are still not occupied. I promise it is not just that they did not want me; other people have approached them and had no luck. Please can the Minister shed some light on how we might use multipliers to get these properties occupied?

Jim McMahon: I definitely cannot guarantee that the landlord did not have a view about the tenants in that situation, but I think we all know of examples in which businesses have been frustrated when they have tried to get hold of the landlord of prime retail properties on the high street, sometimes in fantastic historical buildings. When they eventually get a response—if they get one at all—it is like the one my hon. Friend got: it does not bear truth, as the building is still empty six months down the line.

There is a wider issue here about the powers that the community has to take over assets and turn them into something for the public interest, not just distant investor interest. Measures in the Bill will go a long way to ensure that, when those premises are occupied, the occupant gets the support they need to be sustainable in the long term.

[The Chair]

Order. I am afraid that brings us to the end of the sitting. I thank all the witnesses for their evidence and all the members of the Committee for their patience.

Ordered, That further consideration be now adjourned. —(Gen Kitchen.)

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

Mark Sewards Excerpts

Committee stage
Thursday 12th December 2024 Public Bill Committees

[Jim McMahon]

Clause 5 removes charitable rate relief from private schools. Under the current law, all charities are entitled to 80% charitable relief on any properties that they occupy and use wholly or mainly for charitable purposes. That rule is found in paragraph 2 of schedule 4ZA to the Local Government Finance Act 1988, and clause 5(2) amends it to exclude private schools from that rule. Proposed new sub-paragraph (3) removes from charitable relief hereditaments wholly or mainly used to carry on a private school. That will ensure that ancillary and support buildings, such as offices, will also lose their relief—for example, classrooms and sports fields wholly or mainly used for the purposes of a private school.

The policy to remove the eligibility of private schools that are charities from charitable rate relief is a tough but necessary decision that will secure additional funding to help to deliver the Government’s commitment to education and to young people.

[Mr Mark Sewards (Leeds South West and Morley) (Lab)]

It is a pleasure to serve under your chairship, Dame Siobhain. Yesterday, we heard plenty of evidence from lots of witnesses, specifically about private schools. We also heard from Professor Francis Green, who stated that the measure would have a negligible impact on private schools. At the same time, as the Minister stated, it will raise much-needed funds to support the policies that we promised in the build-up to the general election. Does he agree that although this is a tough choice, since the Bill’s impact on private schools is relatively negligible, it is a necessary measure to raise the funds that we need to deliver our policies?

Non-Domestic Rating (Multipliers and Private Schools) Bill

Mark Sewards Excerpts

Report stage
Wednesday 15th January 2025 Commons Chamber

[Melanie Ward]

All parents work hard to support their families, and all parents want the very best for their children. Hon. Members would do well to remember that.

The additional £1.8 billion a year, which will be raised by ending tax breaks for private schools, allows us to increase per-pupil funding in real terms and helps to deliver the record budget settlement of an extra £4.9 billion for the Scottish Government. I find it strange that the Conservative party, which in the last Parliament promised to level up the country, should be so opposed to measures that will do exactly that. Indeed, the Leader of the Opposition said that her first act as Prime Minister—I am not sure how many Conservative Members actually believe that the day will ever come—would be to restore tax breaks for private schools. She is obviously not here to defend that statement, but in recent months I have heard little from the Conservatives about what they would cut to pay for that policy. Would they make teachers redundant? Would they cancel breakfast clubs? Would they cut mental health support and careers advice?

At the last election, I was proud to stand on a manifesto that promised to break down the barriers to opportunity. As a state-educated MP, I am also proud to deliver this speech in a Parliament in which 63% of its Members were educated at state comprehensives, with 85% of my party’s MPs being state educated. Indeed, only 4% of children in Scotland attend private schools—even fewer than the 7% in England.

The needs of our students are greater than ever. Young people in Scotland face an annual marking saga, decreasing teacher numbers and a deepening mental health crisis—something that I have raised in relation to my own constituency. It is more crucial than ever that we intervene now to prevent those crises from deepening, and that is what these revenue-raising measures will help to fund. I am glad that this Labour Government have introduced protections for SEND children and military families, but it is necessary for private schools to contribute towards improving educational standards across our country. Let us not forget that they have raised their fees by 75% in real terms since 2000.

I know that parents in my Cowdenbeath and Kirkcaldy constituency want to see their children benefit from the kind of education that their ingenuity, creativity and innate talent deserves. They will be crucial to our future society and economy, and to the kind of country that we want to be. We must make the most of their potential.

In this matter, I take inspiration from Jennie Lee, who attended Beath high school in my constituency and went on to set up the Open University. Her picture hangs in my office. She knew the value of ensuring that high-quality education was available to all, no matter their background and where they lived. If we are to provide that, it has to be paid for, and that is why these measures are so important.

[Mr Mark Sewards (Leeds South West and Morley) (Lab)]

I am grateful for this opportunity to speak in favour of this Bill, having been involved in its scrutiny at most of its stages. I join my hon. Friend the Member for Wolverhampton North East (Mrs Brackenridge) in thanking all the witnesses who came forward to give evidence to the Bill Committee. I thank them for the evidence they gave and for the useful insight from their respective sectors.

We on the Government Benches are clear that small businesses in the retail, hospitality and leisure sectors should pay lower business rates. The Bill establishes two new multipliers that are lower than the current standard business rates multiplier. In order to pay for these changes, we must ask larger businesses to contribute their fair share so that our smaller businesses can thrive. That is because we on this side of the House know that when we have tax cuts, we need to pay for them with revenue-raising measures—something the Opposition have not quite realised yet. This is a good mechanism that the Government are deploying to save our high streets, to incentivise local investment and to support entrepreneurship. As all Members will know, high streets are essential to local towns and should be given the support they need. I am pleased to say that the measures in the Bill will benefit smaller local businesses such as those on Queen Street, which sits in the centre of Leeds South West and Morley.

In Committee, we heard from Paul Gerrard, who is the board secretariat director at the Co-op. He told the Committee that these changes will help 92% of the Co-op’s retail properties, but he also estimates that they will help 98% of retail businesses because they will have a rateable value that allows them to benefit from these changes. That has to be welcomed. As for those that will pay more to make these changes possible, the higher multiplier will apply to properties with a value greater than or equal to £500,000, including large warehouses that are often used by online giants. They will pay their fair share, and we can start to level the playing field so that essential community high street businesses are on a level playing field with multinational corporations.

[Damian Hinds]

The hon. Gentleman is right to say that there is a challenge in making sure that things are fair, and we all support a level playing field between the online world and bricks-and-mortar businesses, including in our town centres. There is a thing called the digital services tax, which was conceived while we were in government. Will he say a word about the relative advantages and disadvantages of trying to go after online retailers with business rates changes, which will also affect all manner of other organisations, including bricks-and-mortar retailers, and doing it a different way through a more direct type of tax?

[Mr Sewards]

I return to the point I made earlier. We know that we have to support these smaller businesses—these bricks-an-mortar businesses, as the right hon. Gentleman calls them—and the only way we are going to pay for this is by finding the money from elsewhere. We have chosen to cut business rates for smaller businesses, and we are choosing to raise the revenue from the larger businesses and corporations that have been getting away without paying their fair share for far too long.

[Daisy Cooper]

The hon. Member will recognise that it is the Government’s intention to reduce business rates for the smallest businesses, but as I have mentioned a couple of times in this debate, House of Commons Library research shows that if we compare this year to two years’ time, small businesses will end up 80% worse off, whereas the big chains will end up 40% better off. I believe that this is an unintended consequence. Will he urge the Minister, as I am doing, to address that point in his wind-up?

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[Mr Sewards]

I am grateful to the hon. Member for that contribution. Of course I have read the House of Commons Library research into this. I also took time to listen to all the witnesses who came forward in the Bill Committee, and they made it clear that the changes in this Bill will benefit small businesses in the long term. I am quite happy with the evidence that they provided to support the changes that the Bill makes.

[Daisy Cooper]

rose—

[Mr Sewards]

I will move on to the next part of my speech, but I am happy to take any further interventions that might be relevant to that point. I am going to talk about the amendments now.

I think new clauses 1 to 3 are unnecessary. The Government will monitor the effects of the new multipliers and, as we know, they will show what those effects have been in Budget 2025. They will do the same in all future fiscal statements, so the monitoring is already going to take place. The hon. Member refers to the impact these changes might have in two years’ time, and the Government will comment on that in all future fiscal statements.

Amendments 1 to 6 are noble, but they would significantly affect and reduce the support that the Bill is able to provide to retail, hospitality and leisure businesses.

[Victoria Collins]

The hon. Gentleman mentions leisure businesses, and I have been contacted by several soft play facilities. They talk about the importance of play to children’s wellbeing, but they are not sure whether they will be entitled to the lower rate. Even Parliament’s experts are not sure. Will the hon. Gentleman support us in calling on the Government to clarify that soft play will be included in those lower business rates?

[Mr Sewards]

Yes, it would be helpful if the Minister could provide clarity. As someone who uses soft play—[Laughter.] Not personally, enjoyable though it is. I am sure that my sons Oscar and Arthur, who is six months old and not quite ready to take advantage of soft play, will also be keen to know, so perhaps the Minister could offer some clarity in his closing remarks.

Although amendments 1 to 6 are noble, this Bill is about the high street, and we know just how much our high streets have suffered. This does not mean, for one second, that we are backing down from the challenges facing manufacturing businesses, which amendments 1 to 6 aim to help with. The Budget announced over £3 billion to support the manufacturing sector, including £520 million for a life sciences innovative manufacturing fund, but the changes to business rates in this Bill are primarily about supporting our high streets.

As someone who was teaching on this date a year ago, I am particularly interested in clause 5, which removes the charitable relief enjoyed by some private schools. I welcome this, along with the Budget’s broader measures to remove tax breaks from private schools so that we can fund state education properly. A vote for amendment 10 would delay this funding for state schools by another year.

It is estimated that, of the 2,444 private schools in England, only 1,040 will be impacted by the change. The measure will raise around £70 million, which, when taken together with the other revenue-raising measures we have announced, will increase per pupil funding in real terms to benefit the 94% of students who attend state schools. We must give every child the chance to succeed in life, and that is exactly what this Bill and the other measures we have announced are doing.

[Damian Hinds]

It is worth reflecting that the education budget goes up every year. It does not go up because there has been a change to business rates, VAT or anything else, which is the logic we sometimes hear from Labour Members. If the revenue from those things is slightly smaller than expected, does that mean less money will go into education? Of course not.

We keep hearing about hiring 6,500 more teachers. Does the hon. Gentleman know how many more teachers were hired in the last Parliament?

[Mr Sewards]

I heard the right hon. Gentleman put that question to the Minister in last Monday’s Westminster Hall debate but, just to go back to his original point—I will come to the 6,500 new teachers—we are deliberately taking these decisions in order to increase the amount of money that state schools have to teach the 94% of students who enjoy state school education.

As a basic principle, all Members of this House can get behind the idea that it is a basic function of the state to provide a well-funded, excellent state school place for all students, whether or not parents choose to take advantage of it. That is exactly what we are doing with this Bill and the other measures we have announced.

[Dr Luke Evans]

Talking of basic principles, does the hon. Gentleman therefore believe it is right to tax education—yes or no?

[Mr Sewards]

I believe it is right to tax businesses. Private schools are businesses, and we are choosing to levy the tax on businesses. We are not choosing to levy the tax on state education, because as I was just setting out, it is imperative on us to make sure there is an excellent and well-funded place in state-funded education for all students, should parents choose to take advantage of it. It must be remembered that not all parents have the choice of private or state education. The reason why 94% of students are in state education is because that choice does not exist for most parents in this country. That is why we will take the necessary action to fund state schools properly.

I will make some progress because I can see that Madam Deputy Speaker would like me to—oh, she is being quite generous with her time. Thank you, Madam Deputy Speaker. In which case, I will take more interventions.

Some Members have raised concerns about whether the legislation adversely affects the private schools that are primarily concerned with teaching students with EHCPs. I am pleased to report that it does not. The Government have clearly set out that private schools that teach 50% or more students with EHCPs will continue to be exempt from business rates, which is exactly the right approach. There are therefore no concerns there.

Amendment 8 seeks exemptions for certain kinds of schools. We have talked a little bit about faith schools, and we talked about that a lot on Second Reading. I cannot support the amendment given that we are ending the tax breaks to support the 94% of students who attend state schools. If we dilute the measures in the Bill for that exception, it is easy to make an argument for the next exemption, the one after that and the one after that as well. Our guiding principle should be that every child is entitled to an excellent, properly funded state school place, as I think I have said repeatedly.

Amendment 9—the last one I will speak about—gives local authorities discretion over whether the higher multiplier will apply. As many hon. Members will know, local authorities already possess wide-reaching powers regarding discretionary rate relief. Given that the Bill does not affect those powers at all, I do not think the amendment is required.

To conclude, the measures in the Bill are vital to bring about the restoration of our high streets, support local businesses and give state schools the funding they desperately need. Those are the priorities of this Labour Government and my priorities too. If Conservative Members claim to represent the party of business again, if they ever hope to seize back the mantle of being the party of opportunity, I hope they put their money where their mouth is and join us in voting for this unamended Bill today.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I thought it very sensible for the hon. Member to clarify that it is young Arthur, not himself, who enjoys soft play. I call the final speaker, Chris Vince.