Overview

The Non-Domestic Rating (Multipliers and Private Schools) Bill primarily concerns adjustments to the non-domestic rating system in England, impacting how business rates are calculated. The bill has faced numerous amendments and disagreements between the House of Lords and the House of Commons, primarily centering around the government's control over revenue and the application of multipliers to different property types.

Description

The core of the bill involves modifying multipliers used in calculating business rates for non-domestic properties. Amendments debated involved:

• Healthcare settings: Disagreements arose regarding whether occupied and unoccupied hospitals, medical and dental schools, and other healthcare settings should be exempt from higher multipliers.
• Anchor stores: Similar disputes occurred about whether occupied and unoccupied "anchor stores" (large stores that attract customers to a shopping center) should be exempt from higher multipliers.
• Review near £500,000 threshold: The House of Lords proposed a review of the bill's impact on businesses with rateable values near £500,000. This was debated, with a specific focus on fulfilment warehouses (warehouses that handle online orders) and whether they require a separate use class and multiplier.
• Clause 5: The House of Lords attempted to remove Clause 5, and subsequently proposed amendments to it. The Commons rejected these changes.

The main point of contention throughout the amendment process was the potential impact on public revenue. The Commons consistently rejected the Lords' amendments, citing interference with public revenue and the levy and application of local revenues.

Government Spending

The bill's exact impact on government spending is not explicitly stated. However, the repeated objections from the Commons regarding interference with public revenue strongly suggest the amendments proposed by the Lords could have reduced government income through changes to business rate calculations.

Groups Affected

The bill affects various groups:

• Businesses: The changes to multipliers directly influence the amount of business rates businesses pay. Businesses with rateable values close to £500,000 are particularly affected by the debates about the threshold.
• Healthcare providers: Hospitals, medical, and dental schools could see changes to their business rates based on the outcome of the amendments concerning healthcare settings.
• Retailers (anchor stores): Large retail establishments classified as "anchor stores" are also potentially affected by amendments relating to their multiplier rates.
• Local authorities: Changes to business rates affect the revenue available to local authorities for services they provide.

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