Overview

This bill modifies non-domestic rates in England. It introduces higher rates for large businesses, lower rates for retail, hospitality, and leisure businesses, and removes charitable rate relief for private schools.

Description

The bill makes several key changes:

Changes to Non-Domestic Rating Multipliers

The bill allows the Treasury to set different non-domestic rating multipliers for England. Higher multipliers (up to 0.1 higher than the standard multiplier) can be applied to large businesses (those with a rateable value of £500,000 or more), while lower multipliers (up to 0.2 lower than the small business multiplier) can be applied to qualifying retail, hospitality, and leisure businesses. These changes will affect how much businesses pay in business rates.

Removal of Charitable Relief for Private Schools

The bill removes charitable rate relief for private schools in England. This means private schools will no longer receive a reduction in their business rates, and will pay the full amount. The bill defines a "private school" and provides exemptions for institutions primarily providing education for those with Education, Health and Care plans (EHCPs).

Commencement

Multiplier changes take effect from April 1st, 2026, while the removal of charitable relief for private schools takes effect from April 1st, 2025.

Government Spending

The bill is expected to increase government revenue from higher rates for larger businesses and from the removal of charitable relief for private schools. Precise figures are not included in the provided text. Conversely, the reduction in rates for some businesses will reduce government revenue. The net effect on government spending is therefore unclear from the provided text.

Groups Affected

• Large Businesses: Likely to experience an increase in their non-domestic rates.
• Retail, Hospitality, and Leisure Businesses: May experience a decrease in their non-domestic rates.
• Private Schools in England: Will lose their charitable rate relief, resulting in higher business rates.
• Local Authorities: Will receive altered revenue from business rates based on the changes to multipliers.

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