✓ Passed into LawLords

UK Parliament · Bill

Non-Domestic Rating (Multipliers and Private Schools) Act

Summary

This bill modifies the non-domestic rates system (business property tax) by adjusting the multipliers used to calculate bills for different types of properties. Crucially, it extends business rate relief to private schools, treating them more favorably in the rating system than they previously were. The bill allows the government to change the multiplier rates—the percentages applied to property valuations to determine tax liability—giving flexibility in how much different businesses and organizations pay in property taxes.

A vote to support means

  • Private schools receive targeted rate relief, reducing operating costs and potentially allowing them to lower fees, making independent education more accessible to middle-income families
  • Adjustable multipliers provide the government with a tool to support struggling sectors and businesses by reducing their property tax burden during economic downturns
  • Private schools provide education without drawing on state funding; rate relief recognizes their contribution to the education system and reduces the need for public subsidy
  • Lower business rates for qualifying properties can encourage investment and expansion in priority sectors without requiring direct government spending

A vote to oppose means

  • Private school rate relief effectively subsidizes education for wealthier families through the tax system, while state schools serving disadvantaged communities receive no equivalent benefit
  • Reduced rates on private schools shift the tax burden onto other businesses and ultimately taxpayers, potentially affecting small businesses and high street retailers already facing financial pressure
  • The precedent of using multipliers to provide selective relief to particular sectors raises concerns about fairness and creates opportunities for future lobbying by other industries seeking similar exemptions
  • Public funds are effectively diverted to independent schools when those resources could address significant underfunding in state education, the NHS, and public services

Cast Your Vote

People's Vote25 votes
48% Support · 1252% Oppose · 13
Parliament's Vote512 MPs
67% Ayes · 34133% Noes · 171

Democratic Gap

19% — Moderate gap

Outcome mismatch — the public would block this bill, but Parliament passed it

Bill Passage

Commons

  • 1st reading13 Nov 2024
  • 2nd reading25 Nov 2024
  • Committee stage11 Dec 2024
  • Report stage15 Jan 2025
  • 3rd reading15 Jan 2025

Lords

  • 1st reading16 Jan 2025
  • 2nd reading29 Jan 2025
  • Committee stage24 Feb 2025
  • Report stage18 Mar 2025
  • 3rd reading24 Mar 2025
Royal Assent3 Apr 2025
Full Bill Description(click to expand)

No description available