Non-Domestic Rating (Multipliers and Private Schools) Act

Key Points

• Creates a structured system of non-domestic rating multipliers (main, higher, and lower rates) for England, with a cap on the number of multipliers and alignment with other schedules.
• Clarifies that certain healthcare premises keep the standard multiplier (retains protection for hospitals and similar facilities) and defines which healthcare hereditaments qualify.
• Introduces an anchor-store exemption to support high streets and expands use-class considerations for retail/fulfilment warehouses.
• Expands the policy with a lower multiplier to include sectors like manufacturing, and adds a threshold‑effect review around £500,000 rateable value to study impacts before/after changes.
• Requires impact assessments and post‑implementation reviews on effects on businesses, high streets and growth; imposes reporting requirements and oversight.
• Removes relief for private (independent) schools in England; Lords amendments sought linguistic changes (e.g., replacing 'private school' with 'independent school') and broader exemptions, but most were not adopted in the final Act.
• The bill underwent extensive scrutiny in both Houses, with the Lords proposing revisions that the Commons opposed; after a long passage through Parliament, it received Royal Assent in April 2025.

Progress

The bill completed its passage through both Houses and received Royal Assent on 3 April 2025. The Lords proposed numerous amendments aimed at exemptions, thresholds and reporting, but the Commons largely disagreed with those amendments and retained the core approach to multipliers and the removal of private school relief. The Act is now law and will be implemented in due course, with forthcoming regulations and guidance to set out exact multipliers, exemptions and reporting timelines.

Voting

In the Commons, MPs from Labour/Co‑op broadly supported the government’s approach, voting to disagree with Lords amendments and to push the Bill forward. Conservative and other opposition MPs increasingly voted against Lords amendments, particularly where they would expand exemptions or change revenue safeguards. The overall pattern shows strong cross‑party support for the main framework, with opposition focused on Lords‑suggested safeguards and broader exemptions. The bill ultimately achieved Royal Assent.