Non-Domestic Rating (Multipliers and Private Schools) Bill Report Stage: New Clause 2

Parliament voted on whether to exempt private schools with significant numbers of military families from losing their charitable business rates relief. The amendment, New Clause 2, was tabled at Report Stage of the Non-Domestic Rating (Multipliers and Private Schools) Bill and would have protected schools where a high proportion of pupils come from armed forces households. The vote was defeated by 340 votes to 174.

The bill removes the charitable rates relief that private schools have historically enjoyed, meaning they will pay full business rates alongside the VAT changes introduced separately. The proposed exemption would have created a carve-out specifically for schools serving military communities, where service personnel often use private boarding schools because frequent postings and relocations make consistent state schooling difficult. Defeat of the amendment means the rates changes will apply to those schools equally, potentially increasing costs for families who rely on the Continuity of Education Allowance, a Ministry of Defence grant designed to support the children of serving personnel.

The vote split almost entirely along party lines. All 302 Labour MPs and 35 Labour and Co-operative MPs who voted opposed the amendment, while all 97 voting Conservatives, all 64 voting Liberal Democrats, and all 6 voting Reform UK members supported it. The cross-party support for the exemption among opposition parties is notable given how rarely Conservatives and Liberal Democrats vote together. Seven independents also voted in favour. The bill continued through Parliament, with related Lords amendment votes in March 2025 showing the government successfully resisting further attempts by the House of Lords to modify the legislation, suggesting the government's position on universal application of the policy held firm throughout the bill's passage.