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Non-Domestic Rating (Multipliers and Private Schools) Bill: HL Bill 61 of 2024–25

The Non-Domestic Rating (Multipliers and Private Schools) Bill is a government bill that was introduced in the House of Commons on 13 November 2024. The bill completed all its House of Commons stages unamended on 15 January 2025. 

The bill would give effect to two policy commitments made by the government relating to non-domestic rating (commonly known as ‘business rates’): 

• the introduction of additional business rate ‘multipliers’ (tax rates), which would have the effect of increasing business rates for larger properties and reducing business rates for retail, hospitality and leisure properties 

• the removal of charitable rate relief from some private schools that are charities 

The new business rates multipliers will first be calculated in respect of the 2026/27 financial year, with the levels to be announced at the autumn 2025 budget. The removal of charitable rate relief from private schools will take effect from the 2025/26 financial year. 

The government intends that these measures will deliver the chancellor’s commitment in the 2024 autumn budget to provide long-term support to high streets, raise revenue to support the public finances and help deliver the government’s commitments relating to education and young people. 

During its House of Commons stages, the bill was opposed by the Conservatives, Reform and the Liberal Democrats. Critics of the bill argued that new business rates multipliers would raise taxes for businesses on average, compared to the situation at present, and that the removal of charitable rate relief from private schools would increase pressure on the state school system and negatively impact some children’s education.