Non Domestic Rating (Multipliers and Private Schools) Bill: Motion to disagree with Lords Amendment 3

Parliament voted on 25 March 2025 to override Lords Amendment 3 to the Non-Domestic Rating (Multipliers and Private Schools) Bill, which concerned the removal of business rates relief from private schools. The motion to disagree with the Lords amendment passed by 316 votes to 180. The result means the Commons rejected a change the House of Lords had inserted into the bill, reasserting the government's original policy position.

The practical effect of this vote is to keep intact the government's plan to strip charitable business rates relief from private schools. Currently, many independent schools benefit from mandatory 80 per cent relief on business rates because they hold charitable status. The government's bill would end this exemption, with ministers arguing the revenue generated would help fund improvements to state education, including hiring additional teachers. Blocking the Lords amendment means private schools would face higher property tax bills under the legislation as it progresses toward the statute book.

The vote divided almost entirely along party lines. Labour and Labour and Co-operative MPs voted unanimously in favour of overriding the Lords, providing 315 of the 316 Ayes. All 101 Conservative MPs who voted, all 64 Liberal Democrats, all five Democratic Unionist Party members, all four Reform UK members present, and all four Green Party members voted No, opposing the government. The Liberal Democrats, notably, sided with Conservatives in defending the Lords amendment rather than supporting the government's redistribution argument, reflecting their longstanding concern about the impact on smaller independent schools. This division sits within a broader ping-pong process between the two chambers, with subsequent votes on 31 March 2025 showing the Commons continuing to reject a series of Lords amendments to the same bill.