Non-Domestic Rating (Multipliers and Private Schools) Bill

Polly Billington Excerpts

2nd reading
Monday 25th November 2024 Commons Chamber

[Ms Polly Billington (East Thanet) (Lab)]

At the general election, businesses in my community were crying out for change. They felt the need for stability and certainty after more than a decade of chaos and incompetence had hit them all hard. One of the things they welcomed was Labour’s pledge to reform business rates and ensure that the online giants, which suck so much out of our local economies, would pay their fair share. Small town high streets such as those in Margate, Broadstairs and Ramsgate desperately need the support that a change in business rates will give them. It is vital that we create a fairer business rates regime to support investment and protect our high streets.

More widely, I heard real anxiety on the doorstep about the need for more teachers in our schools and access to quality education, so often unavailable for the 94% of children who go to state schools. Reforming business rates for private schools, which serve only 6% of the population, makes sense; it is carefully costed and will make a difference to so many children in Thanet and across our country.

I hope, in particular, that this reform is a driver to increase access to the creative disciplines so that children can learn to expand, develop and harness their imaginations, appreciate the arts in all their forms, with good-quality creative education delivered by qualified teachers who love their subject. It should go without saying, but it does need to be said, that children raised with good-quality creative education have the potential to go on to contribute to our local economy through the creative industries, including by starting their own businesses.

Our business rates system has disincentivised investment and created huge burdens on our high streets. The Conservative party created a cliff edge for high street businesses across the country as temporary reliefs were due to end. Providing certainty through a 40% relief rate and the freezing of the small business tax multiplier is very welcome.

I welcome the Chancellor’s intention to permanently lower rates for retail, hospitality and leisure; this is crucial for constituencies such as East Thanet, where creative industries and tourism businesses are crying out for help. I have been working with the Ramsgate empty shop campaign to revive the town’s high street. Despite its wonderful heritage, thriving creative community and extraordinary environmental assets, Ramsgate’s local economy is far too seasonal, and that makes running a business all year round harder. That in turn has driven many businesses to the brink and left the high street echoing with the silence of empty shops. Spaces that should be seen as an opportunity for entrepreneurs have become a sign of desolation. That must change.

The importance of business rate changes is also highlighted in the other aspect of this Bill: the removal of private schools rates relief. Every parent wants the best for their children; that impulse is not exclusive to those who choose to send their children to private school. There is nothing wrong with ambition. If we are to enable all families to fulfil their ambitions, we must ensure that they all have access to the very best quality education. It is our duty as a society and a country to ensure that all those children’s talents, aptitudes and interests are nurtured.

Vast swathes of working-class children do not have access to the kind of education that would be genuinely transformative. For example, the last Government cut back radically the amount of arts education in state schools, locking working-class children out of the opportunities to find their talent, tap into their imagination, and learn how to play an instrument, express themselves through dance, wield a paint brush, work with clay or look deeply and critically at the world around them and respond to it. They pursued a curriculum that damaged the prospects of those children.

In contrast, private schools know that creative education is good for children’s wellbeing and academic outcomes. That is why they put so many resources into developing it. That is why they allocate the resources, build the assets and invest in the teaching staff to ensure that their children get that access to the creative arts that contribute to society in every dimension.

Unsurprisingly, 40% of those working in the film, TV and music industries were educated at private schools. Who knows the amount of untapped talent in the 94% of children in state schools that we have lost as a country because of the actions of the last Government. It is estimated that the creative sector in the UK is worth £125 billion and employs 2.3 million people. We are limiting ourselves as a country by not giving every child access to creative education. Imagine how much more we could be producing in economic prosperity as well as greater wellbeing if those children had the same access that the 6% have. So, yes, it is right to find that money from the private schools who serve the 6%. Yes, it is right that we find the money for more and better teachers in state schools with a love of the arts; with an enthusiasm for sharing their appreciation and skills; and with an aptitude for spotting talent, rewarding effort and encouraging creativity.

Those small businesses in my community also want to know that the children in our schools become young adults as fully rounded products of our education system, with their imagination, skills and discipline developed ready for the kind of work in the creative industries that drives our economy locally, nationally and globally. If for nothing else, I urge the House to vote for these changes for our children, our small businesses and our economy.