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

Parliament voted on 25 November 2024 to give a second reading (the first major parliamentary vote on a bill's general principles) to the Non-Domestic Rating (Multipliers and Private Schools) Bill. The bill would remove the business rates relief that private schools currently receive by virtue of their charitable status, requiring them to pay the same property taxes as other businesses. The vote passed by 336 ayes to 175 noes.

The practical effect of this bill, if it becomes law, is that private schools in England would lose the mandatory 80 per cent relief on business rates (a property tax on non-residential premises) that they have historically received as registered charities. The government has stated that the revenue raised would be used to fund improvements in state education, including hiring additional teachers. The change would increase operating costs for private schools, potentially leading some to raise fees and others to face financial pressure.

The vote divided almost entirely along party lines. All 326 Labour and Labour and Co-operative MPs who voted supported the bill, while Conservatives, Liberal Democrats, Reform UK, the DUP, and the Ulster Unionist Party all voted against. The Green Party's four voting MPs supported the measure, and four Independents also voted in favour while seven voted against. The bill subsequently passed its report stage in January 2025, with opposition amendments defeated by similar margins, suggesting the government faced no significant internal rebellion and retained firm control of the legislation.