Non-Domestic Rating (Multipliers and Private Schools) Bill (changed to Non-Domestic Rating (Multipliers) Bill) Debate

Full Debate: Read Full Debate
Department: Ministry of Housing, Communities and Local Government
Consideration of Lords amendments
Nusrat Ghani Portrait Madam Deputy Speaker (Ms Nusrat Ghani)
- Hansard - -

I must draw the House’s attention to the fact that financial privilege is engaged by Lords amendments 1 to 12, and 14 to 17. If any of those Lords amendments are agreed to, I will cause the customary entry waiving Commons financial privilege to be entered in the Journal.

Clause 3

Application of multipliers

Jim McMahon Portrait The Minister for Local Government and English Devolution (Jim McMahon)
- View Speech - Hansard - - - Excerpts

I beg to move, That this House disagrees with Lords amendment 1.

Nusrat Ghani Portrait Madam Deputy Speaker
- Hansard - -

With this it will be convenient to discuss Lords amendments 2 to 19, and Government motions to disagree.

Jim McMahon Portrait Jim McMahon
- Hansard - - - Excerpts

First, I am grateful to Members of both the Commons and the Lords who have so diligently scrutinised the Bill throughout its passage. Before I address the amendments tabled by the Lords, allow me to remind the House of why we introduced the Bill in the first place. This Government have committed to transforming the business rates system, and the Bill is a first step on that important journey. We want to achieve a sustainable system that is fit for the current economic landscape, and where business growth is supported and ratepayers pay their fair share. I thank the noble Lord Khan of Burnley for taking the Bill through the other place and for being so thorough in his approach. I also thank officers of the Ministry of Housing, Communities and Local Government and my private office for all their work on the Bill.

The Government oppose all the amendments before us today and I will provide further explanation as to why. At the Budget, the Government explained that we wanted to introduce new lower multipliers for qualifying retail, hospitality and leisure properties from April 2026 to address the uncertainty of the temporary, stopgap support provided by the annual RHL relief. Business rates represent a stable source of revenue for local government, meaning that this permanent tax cut must be sustainably funded. That is why the Government also announced our intention to introduce a higher multiplier for all properties with a rateable value at or above £500,000. This Bill makes provision to enable the introduction of those new multipliers, so this is the first step towards delivering on the Government’s manifesto commitment to transform the business rates system to one that is sustainable, protects the high street and is fit for the 21st century.