Overview

This bill primarily adjusts the multipliers used in calculating non-domestic rates (business rates) in England. It makes changes to how these rates are applied to healthcare properties, anchor stores (large retailers), and potentially fulfilment warehouses, while also including a review of the impact of the changes near the £500,000 rateable value threshold. It also addresses the business rates levied on private schools.

Description

The bill's core focuses on amending the non-domestic rating system. The Lords initially proposed several amendments aiming to exempt certain properties from higher multipliers. These included occupied and unoccupied hospitals, medical and dental schools, other healthcare settings, and anchor stores. The Commons initially rejected these amendments on the grounds of affecting public revenue. However, the Lords withdrew their original amendments, proposing revised amendments (marked 'B') allowing the Secretary of State to use regulations to determine which properties are exempt. This means the final decision about which types of properties benefit from the lower multipliers rests with the government through these secondary regulations.

A further amendment requires a review of how the bill’s provisions affect businesses with a rateable value near £500,000. This review must also consider the possibility of a separate use class and multiplier for fulfilment warehouses (large distribution centers) operating outside of traditional high streets.

Clause 5, initially proposed for removal by the Lords, remains in the bill, but with amendments requiring parliamentary approval for any regulations impacting private schools’ business rates.

Government Spending

The bill's impact on government spending is not directly quantified in the provided text. However, the Commons' consistent rejection of amendments (Reasons 1A, 2A, 7A, 8A, and 15A) citing interference with public revenue suggests that the overall goal is to maintain or potentially increase government revenue from business rates. The specific financial implications will depend on the regulations enacted by the Secretary of State.

Groups Affected

• Healthcare providers: Hospitals, medical and dental schools, and other healthcare settings could potentially benefit from lower business rates depending on the Secretary of State's regulations.
• Retailers (anchor stores): Large retailers (anchor stores) may see changes to their business rates based on the Secretary of State's decisions.
• Fulfilment warehouses: These businesses could experience changes depending on the outcomes of the review regarding a potential new use class and multiplier.
• Businesses with rateable value near £500,000: This group will be the focus of a government review to assess the impacts of the bill.
• Private schools: Clause 5, as amended, will still impact the business rates paid by private schools, subject to parliamentary approval of any relevant regulations.
• Local Authorities: The changes to the multipliers may affect the overall local revenue available to local authorities.

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