Non-Domestic Rating (Multipliers and Private Schools) Bill

Sarah Bool Excerpts

Report stage
Wednesday 15th January 2025 Commons Chamber

[Adam Thompson]

If I am incorrect, I stand corrected. My understanding from speaking to the experts is that the proportion has remained broadly consistent, but my apologies if that is incorrect. I thank the right hon. Member for his intervention.

The Committee stage reaffirmed what many of us on the Government Benches already knew, which is that this Bill represents a common-sense modification of our tax policy that will support local small businesses. The Bill represents a core pillar of this Government’s goal to rebalance the scales away from large online giants in favour of local independents and towards the 94% of children educated in the state sector. I know that traders and families in Ilkeston, Long Eaton and the surrounding villages in my constituency will broadly benefit from these measures, and I am proud to support this Bill through its remaining stages unamended.

[Sarah Bool (South Northamptonshire) (Con)]

I intend to confine my remarks to two specific amendments—amendments 3 and 10, on private schools and special educational needs and disabilities—that would delay the introduction of this tax hike so schools have more time to plan financially.

Schools in my constituency have been punished by a series of tax rises since this Labour Government took office in July. By adding VAT to private school fees, and now by ending their charitable business rate relief status, Labour is attacking aspiration. These tax hikes will not hurt the wealthiest. It is the people who have scrimped and saved to send their children to a school of their choice who will be hit the worst. Labour seems to believe people should not have a choice over where they send their child to school, as is evident in their similarly misguided Children’s Wellbeing and Schools Bill, which is making its way through this place.

Schools will close because of this tax hike, and I know this because it is happening in my constituency of South Northamptonshire. Carrdus school, founded in 1957, survived the cold war, the winter of discontent, the global financial crisis and three Labour Governments, yet it could not withstand the tax onslaught from this Chancellor and it will close its doors at the end of the summer term. That will mean 120 pupils flooding back into the state system, which is already struggling with capacity issues, at a huge cost to the taxpayer.

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[Sarah Bool]

That may be the evidence that you have received in this instance, but I am giving the real-life proof. When I spoke to the headteacher about this, she said that the increase in national insurance on teacher costs, which are about 80% of outgoings, in combination with all the other things, has had a huge impact and the school will have to shut. It will be closing its doors at the end of July, which is a travesty.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

Order. You said the word “you”, but I did not ask the question.

[Sarah Bool]

My apologies, Madam Deputy Speaker; I would not dare say that about you.

If the Government are intent on punishing my constituents’ aspiration for the future of their children, the least they could do is grant the concessions that the Conservatives are asking for in all our amendments, and specifically those in amendments 7 and 10. Amendment 7 would exempt private schools that wholly or partially provide education for children with special educational needs and disabilities who have not yet obtained an education, health and care plan, or whose needs are established but not so severe as to require one. SEND support in schools helps pupils with a level of need below that of an EHC plan. Restricting relief only to those settings that provide for the most severe needs is out of step with the rest of our education system. Many families, on not being successful in applying for an EHC plan, or indeed enduring huge waiting times for the local authority to put one in place, opt to send their children to a private school. We should not punish families who choose to do what is in the best interests of their children.

Amendment 10 would delay the introduction of this tax hike for a further year to allow schools to plan their finances accordingly. That is just plain common sense. It would mean fewer schools like Carrdus having to make the unenviable choice to close their doors.

[Dr Luke Evans]

My hon. Friend has hit the nail on the head: there is a timing issue. The Labour Government were explicit and up front on this tax rise in their manifesto, but they claim that they care about children’s education and welfare. If so, why would they implement the change halfway through an academic year? The hon. Member for Erewash (Adam Thompson) just turned around and said, “Well, it doesn’t matter because it’s 120 kids in the Member’s constituency.” Actually, it really does matter, because every single child’s education matters. Does my hon. Friend agree that even if those are small amounts at the margin, it is completely justifiable to delay the measure as the schools, the experts and the parents have asked for?

[Sarah Bool]

I totally concur with my hon. Friend, who made the point powerfully. The impact goes beyond the 120 individual students to their parents’ arrangements and how they work. The headteacher of the school has a husband who was also a teacher, and they face a huge impact in respect of what they will do with their children and whether they can manage to make new school place arrangements. This policy is terribly misguided. We really need to think about what we are doing. It is a travesty that we will lose a school.

[Chris Vince (Harlow) (Lab/Co-op)]

Will the hon. Member give way?

[Sarah Bool]

No, I will keep going if the hon. Member does not mind.

I do not want to see any other schools close or any other children suffer as a result of this plan. I hope that colleagues across the House will join Conservative Members in supporting our amendments.

[Paul Davies (Colne Valley) (Lab)]

I am pleased to speak in favour of the Bill, which is a significant piece of legislation that aims to reform the non-domestic rating system in England. I welcome the Bill’s primary objective of creating a fairer and more balanced approach to non-domestic rating. By increasing the multipliers for large businesses, we will ensure that those entities contribute their fair share to the local economy. That change is particularly important as it addresses the disparity between large corporations and smaller businesses, which often struggle to compete under the current system.

The introduction of lower multipliers for retail, hospitality and leisure properties is a much needed relief for those sectors, which have faced significant challenges, especially in the wake of the covid-19 pandemic. By reducing the tax burden, the Bill aims to support recovery and growth, ultimately benefiting local communities and economies such as the hospitality and retail sector in my constituency.

One of the most notable aspects of the Bill is the removal of charitable relief for private schools. Although private schools play a role in our education system, it is essential to recognise that they operate as businesses and should be taxed accordingly. This change will generate additional revenue that can be invested in public services, including state schools. The Bill represents a step towards a more equitable and balanced tax system. It addresses the needs of various sectors, supports local economies and ensures that all entities contribute fairly to the public good.

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[Chris Vince (Harlow) (Lab/Co-op)]

As I have about two hours to give this speech, I want to start by going back to the summer of 1983—[Laughter.] I have just told everyone how old I am, have I not?

Thank you, Madam Deputy Speaker, for the opportunity to speak in this debate. I also thank the Minister for all his work on the Bill. I genuinely want to thank all Members from across the House too for their contributions in Committee. I thought the way in which the Bill was discussed in Committee and the contributions from both sides were well thought out and, as I have mentioned before, respectful—I say that in advance of any interventions. I also want to thank all the people who came forward to provide evidence to the Committee.

I am honoured to rise to speak on Report on behalf of my constituency of Harlow. First—I promise I will not take two hours—I think everybody in the Chamber will forgive me for taking the opportunity to thank and praise the hard-working teachers and school support staff across my constituency for the hard work they do day in, day out to support young people.

I had a wonderful opportunity to visit Mark Hall academy in my constituency last week and saw the incredible work that its staff are doing to provide an inclusive atmosphere. I particularly welcomed the fact that the school was about not just exam results, but what I describe as the hidden curriculum—how young people grow and develop. The school also focuses on the importance of debating skills, which may be of particular interest to the right hon. Member for East Hampshire (Damian Hinds)—I am only joking. I thought that perhaps he and I could go together and learn a thing or two. [Interruption.] I set myself up for that. The school also recognises the importance of critical thinking. As I say, it was a fantastic visit, which was capped by an opportunity to meet the young carers in the school. As many Members will know, young carers are a hugely important issue for me.

I will briefly address private schools, as they have been mentioned a number of times. As I said on Second Reading, private schools affected by this policy can choose to absorb some of the cost if they so wish, and that is their prerogative. Members across the House may disagree with this, but, ultimately, the fundamental issue here is fairness and equality.

[Sarah Bool]

Will the hon. Gentleman give way?

[Chris Vince]

Yes, I certainly have the time.

[Sarah Bool]

The hon. Gentleman mentioned that private schools could absorb the cost. The headteacher of my Carrdus school told me that they could not absorb the cost. The school has tried everything possible to stay open, but it cannot. One just cannot make this claim that these schools can absorb the cost; they cannot.

[Chris Vince]

I thank the hon. Lady for her comments. Having spoken to headteachers in private schools, I know that that is what some of them are looking to do. I recognise that may not be the case in that situation. As I said on Second Reading, ultimately, we want all schools to be at such a standard that parents do not need to choose to send their children to private school.

Every business in the UK is required to pay VAT. The “Cambridge Dictionary” definition of a business is a particular company that buys and sells goods and services. Parents pay for the service of their children’s teachers, and they pay for their children to go to private school.