Explanatory notes to the Bill, prepared by the Ministry of Housing, Communities and Local Government, have been ordered to be published as HL Bill 61—EN.
Lord Khan of Burnley has made the following statement under section 19(1)(a) of the Human Rights Act 1998:
In my view the provisions of the Non-Domestic Rating (Multipliers and Private Schools) Bill are compatible with the Convention rights.
A
bill
to
Make provision for, and in connection with, the introduction of higher non-domestic rating multipliers as regards large business hereditaments, and lower non-domestic rating multipliers as regards retail, hospitality and leisure hereditaments, in England and for the removal of charitable relief from non-domestic rates for private schools in England.
B e it enacted by the King’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—
Part A1
of
Schedule 7
to the
Local Government Finance Act 1988
(non-domestic
rating multipliers for England) is amended as follows.
In Chapter 1 —
in paragraph A1 —
omit “and” at the end of paragraph (a) ;
(c)
together with regulations under this Part, other
non-domestic rating multipliers.”;
“(ba)
Chapter 3A makes provision about the making of
regulations which provide for the calculation of other non-domestic rating multipliers;”.
“Chapter 3A Other non-domestic rating multipliers
A6A
(1)
The Treasury may by regulations make provision for the calculation
of multipliers applicable in relation to England that produce multipliers for a given financial year that are—(a)
higher, but not more than 0.1 higher, than the non-domestic
rating multiplier for that year, or(b)
lower than the non-domestic rating multiplier for that year,
but not more than 0.2 lower than the small business non-domestic rating multiplier for that year.(2)
Regulations under sub-paragraph (1) (b) —
(a)
may not provide for the calculation of more than two
multipliers;(b)
may provide for adjustments to a calculation so that it
produces a different multiplier for a given financial year for the purposes of Schedule 4ZB or 5A (or both) to the multiplier for that year for the purposes of Schedule 4ZA.”
In
Chapter 4
(making and giving notice of calculation etc), in
paragraph
A7
(1)
(a)
, for “the non-domestic rating multiplier and the small business
non-domestic rating multiplier” substitute “each multiplier about which
provision is made by or under this Part of this Schedule”.
In Chapter 6 (regulations), in paragraph A12 —
in
sub-paragraph (1)
for “paragraph A10(4)(b)” substitute “this Part
of this Schedule”;
“(2)
(3)
A statutory instrument to which sub-paragraph (2) or paragraph 9B (3) does not apply containing regulations under paragraph A6A or A10(4)(b) is subject to annulment in
pursuance of a resolution of the House of Commons.”
Part 2
of
Schedule 7
to the
Local Government Finance Act 1988
(special
authority multipliers) is amended as follows.
“9B
(1)
The Treasury may by regulations make provision in accordance
with which a special authority is to set multipliers for a given financial year—(a)
that are—
(i)
higher, but not more than 0.1 higher, than the
authority’s non-domestic rating multiplier for that year, or(ii)
lower than the authority’s non-domestic rating
multiplier for that year, but not more than 0.2 lower than the authority’s small business non-domestic rating multiplier for that year, and(b)
which are for other billing authorities calculated in
accordance with regulations under paragraph A6A .(2)
Regulations under this paragraph are to be made by statutory
instrument.(3)
A statutory instrument containing (whether alone or with other
provision) regulations under sub-paragraph (1) (a) (i) may not be made unless a draft of the instrument has been laid before and approved by a resolution of the House of Commons.(4)
A statutory instrument to which paragraph A12 (2) or sub-paragraph
(3) of this paragraph does not apply containing regulations under
this paragraph is subject to annulment in pursuance of a resolution of the House of Commons.”
In
paragraphs 10
(2)
and
11
(1)
, after “or 9A” insert “, or regulations under
paragraph
9B
,”.
The Local Government Finance Act 1988 is amended as follows.
In Schedule 4ZA (chargeable amount for occupied hereditaments), in paragraph 10 (interpretation)—
in
sub-paragraph (9)
(a)
, for “whichever of B or D is” substitute “the
multiplier”;
“(9B)
Regulations under sub-paragraph (9) may prescribe—
(a)
B or D,
(b)
(9C)
In sub-paragraph (9B) , “qualifying retail, hospitality or leisure
hereditament” has such meaning as may be prescribed by the Treasury in regulations.”;
“(ea)
the description of hereditaments in the local
non-domestic rating list in which they are shown;”.
In Schedule 4ZB (chargeable amount for unoccupied hereditaments), in paragraph 3 (interpretation)—
in
sub-paragraph (6)
(a)
, for “whichever of B or D is” substitute “the
multiplier”;
“(6A)
Regulations under sub-paragraph (6) may prescribe—
(a)
B or D,
(b)
(6B)
In sub-paragraph (6A) , “qualifying retail, hospitality or
leisure hereditament” has such meaning as may be prescribed by the Treasury in regulations.”;
“(ea)
the description of hereditaments in the local
non-domestic rating list in which they are shown;”.
In Schedule 5A (chargeable amount for central rating), in paragraph 6 (interpretation)—
in
sub-paragraph (8)
(a)
, for “whichever of B or D is” substitute “the
multiplier”;
“(8A)
Regulations under sub-paragraph (8) may prescribe—
(a)
B or D,
(b)
(8B)
In sub-paragraph (8A) , “qualifying retail, hospitality or
leisure hereditament” has such meaning as may be prescribed by the Treasury in regulations.”;
“(ea)
the description of hereditaments in the local
non-domestic rating list in which they are shown;”.
The Local Government Finance Act 1988 is amended as follows.
In
section 138
(judicial review), in paragraph (2)
(j)
, for “a non-domestic rating
multiplier or small business non-domestic rating multiplier” substitute “any
multiplier”.
In section 143 (orders and regulations), in subsection (9) —
after “under paragraph” insert “ A6A ,”;
for “or 5(13A)” substitute “, 5(13A) or 9B ”.
The Local Government Finance Act 1988 is amended as follows.
“(3)
But this paragraph does not apply where the hereditament is situated
in England and, on the day concerned, the hereditament is wholly or mainly used for the purposes of carrying on a private school.(4)
A “private school” means an institution which is either—
(a)
a school—
(i)
at which full-time education is provided for pupils
of compulsory school age (whether or not such education is also provided for pupils under or over that age),(ii)
where fees or other consideration are payable for that
provision of full-time education, and(iii)
which is not a nursery school, or
(b)
an institution—
(i)
which is wholly or mainly concerned with providing
education suitable to the requirements of persons over compulsory school age but under 19,(ii)
at which full-time education is provided for such
persons,(iii)
where the provision of full-time education falling
within sub-paragraph (ii) is wholly or mainly provision in respect of which fees or other consideration are payable, and(iv)
which is not an independent training or learning
provider.(5)
But an institution is not a private school if it is wholly or mainly
concerned with providing full-time education to persons for whom an EHC plan is maintained.(6)
In sub-paragraph (4) (b) (iv) an “independent training or learning
provider” means an institution—(a)
at which education or training is provided for persons over
compulsory school age but under 19 under a contract with the Secretary of State, and(b)
where the consideration for the provision falling within paragraph (a) is payable by the Secretary of State under that
contract.(7)
For the purposes of sub-paragraphs (4) to (6) , “compulsory school
age”, “EHC plan”, “nursery school”, “pupil” and “school” have the same meanings as in the Education Act 1996 .”
“(2A)
But sub-paragraph (2) does not apply if it appears that when
next in use the hereditament will be wholly or mainly used for the purposes of carrying on a private school.(2B)
A “private school” means the same as in paragraph 2 of Schedule
4ZA.”
The amendments made by section
5
have effect in respect of financial years
beginning on or after 1 April 2025.
This Act may be cited as the Non-Domestic Rating (Multipliers and Private Schools) Act 2025.
A
bill
to
Make provision for, and in connection with, the introduction of higher non-domestic rating multipliers as regards large business hereditaments, and lower non-domestic rating multipliers as regards retail, hospitality and leisure hereditaments, in England and for the removal of charitable relief from non-domestic rates for private schools in England.
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Ordered to be Printed, .
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