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Non-Domestic Rating (Multipliers and Private Schools) Act 2025

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37amendments tabled against this printing

A bill to Make provision for, and in connection with, the introduction of higher non-domestic rating multipliers as regards large business hereditaments, and lower non-domestic rating multipliers as regards retail, hospitality and leisure hereditaments, in England and for the removal of charitable relief from non-domestic rates for private schools in England.

Be it enacted by the King’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—

Additional multipliers for England

1 Determination of additional multipliers

(1) Part A1 of Schedule 7 to the Local Government Finance Act 1988 (non-domestic rating multipliers for England) is amended as follows.
(2) In Chapter 1
(a) in paragraph A1
(i) omit “and” at the end of paragraph (a);
(ii) at the end of paragraph (b) insert, “, and
(c) together with regulations under this Part, other non-domestic rating multipliers.
;
(b) in paragraph A2, after paragraph (b) insert—
(ba) Chapter 3A makes provision about the making of regulations which provide for the calculation of other non-domestic rating multipliers;
.
(3) After Chapter 3 insert—

Chapter 3A — Other non-domestic rating multipliers

A6A
(1) The Treasury may by regulations make provision for the calculation of multipliers applicable in relation to England that produce multipliers for a given financial year that are—
(a) higher, but not more than 0.1 higher, than the non-domestic rating multiplier for that year, or
(b) lower than the non-domestic rating multiplier for that year, but not more than 0.2 lower than the small business non-domestic rating multiplier for that year.
(2) Regulations under sub-paragraph (1)(b)
(a) may not provide for the calculation of more than two multipliers;
(b) may provide for adjustments to a calculation so that it produces a different multiplier for a given financial year for the purposes of Schedule 4ZB or 5A (or both) to the multiplier for that year for the purposes of Schedule 4ZA.
(4) In Chapter 4 (making and giving notice of calculation etc), in paragraph A7(1)(a), for “the non-domestic rating multiplier and the small business non-domestic rating multiplier” substitute “each multiplier about which provision is made by or under this Part of this Schedule”.
(5) In Chapter 6 (regulations), in paragraph A12
(a) in sub-paragraph (1) for “paragraph A10(4)(b)” substitute “this Part of this Schedule”;
(b) for sub-paragraph (2) substitute—
(2) A statutory instrument containing (whether alone or with other provision) regulations under paragraph A6A(1)(a) may not be made unless a draft of the instrument has been laid before and approved by a resolution of the House of Commons.
(3) A statutory instrument to which sub-paragraph (2) or paragraph 9B(3) does not apply containing regulations under paragraph A6A or A10(4)(b) is subject to annulment in pursuance of a resolution of the House of Commons.

2 Special authority multipliers

(1) Part 2 of Schedule 7 to the Local Government Finance Act 1988 (special authority multipliers) is amended as follows.
(2) After paragraph 9A insert—
9B
(1) The Treasury may by regulations make provision in accordance with which a special authority is to set multipliers for a given financial year—
(a) that are—
(i) higher, but not more than 0.1 higher, than the authority’s non-domestic rating multiplier for that year, or
(ii) lower than the authority’s non-domestic rating multiplier for that year, but not more than 0.2 lower than the authority’s small business non-domestic rating multiplier for that year, and
(b) which are for other billing authorities calculated in accordance with regulations under paragraph A6A.
(2) Regulations under this paragraph are to be made by statutory instrument.
(3) A statutory instrument containing (whether alone or with other provision) regulations under sub-paragraph (1)(a)(i) may not be made unless a draft of the instrument has been laid before and approved by a resolution of the House of Commons.
(4) A statutory instrument to which paragraph A12(2) or sub-paragraph (3) of this paragraph does not apply containing regulations under this paragraph is subject to annulment in pursuance of a resolution of the House of Commons.
(3) In paragraphs 10(2) and 11(1), after “or 9A” insert “, or regulations under paragraph 9B,”.

3 Application of multipliers

(1) The Local Government Finance Act 1988 is amended as follows.
(2) In Schedule 4ZA (chargeable amount for occupied hereditaments), in paragraph 10 (interpretation)—
(a) in sub-paragraph (9)(a), for “whichever of B or D is” substitute “the multiplier”;
(b) after sub-paragraph (9A) insert—
(9B) Regulations under sub-paragraph (9) may prescribe—
(a) B or D,
(b) in relation to a hereditament other than a qualifying healthcare hereditament for a chargeable day for which the value of A is £500,000 or more, and is not an “anchor store”, a higher multiplier for the financial year calculated in accordance with regulations under paragraph A6A(1)(a) or 9B(1)(a)(i) of Schedule 7, or
(c) in relation to a qualifying retail, hospitality, manufacturing or leisure hereditament, a lower multiplier for the financial year calculated in accordance with regulations under paragraph A6A(1)(b) or 9B(1)(a)(ii) of that Schedule.
(9C) In sub-paragraph (9B), “qualifying retail, hospitality, manufacturing or leisure hereditament” and “anchor store” have such meanings as may be prescribed by the Treasury in regulations.
(9D) In sub-paragraph (9B), “qualifying healthcare hereditament” includes hospitals, medical and dental schools, and any other healthcare settings as may be prescribed by the Treasury in regulations.
;
(c) in sub-paragraph (10) after paragraph (e) insert—
(ea) the description of hereditaments in the local non-domestic rating list in which they are shown;
.
(3) In Schedule 4ZB (chargeable amount for unoccupied hereditaments), in paragraph 3 (interpretation)—
(a) in sub-paragraph (6)(a), for “whichever of B or D is” substitute “the multiplier”;
(b) after sub-paragraph (6) insert—
(6A) Regulations under sub-paragraph (6) may prescribe—
(a) B or D,
(b) in relation to a hereditament other than a qualifying healthcare hereditament for a chargeable day for which the value of A is £500,000 or more, and is not an “anchor store”, a higher multiplier for the financial year calculated in accordance with regulations under paragraph A6A(1)(a) or 9B(1)(a)(i) of Schedule 7, or
(c) in relation to a qualifying retail, hospitality, manufacturing or leisure hereditament, a lower multiplier for the financial year calculated in accordance with regulations under paragraph A6A(1)(b) or 9B(1)(a)(ii) of that Schedule.
(6B) In sub-paragraph (6A), “qualifying retail, hospitality, manufacturing or leisure hereditament” and “anchor store” have such meanings as may be prescribed by the Treasury in regulations.
(6C) In sub-paragraph (6A), “qualifying healthcare hereditament” includes hospitals, medical and dental schools, and any other healthcare settings as may be prescribed by the Treasury in regulations.
;
(c) in sub-paragraph (7) after paragraph (e) insert—
(ea) the description of hereditaments in the local non-domestic rating list in which they are shown;
.
(4) In Schedule 5A (chargeable amount for central rating), in paragraph 6 (interpretation)—
(a) in sub-paragraph (8)(a), for “whichever of B or D is” substitute “the multiplier”;
(b) after sub-paragraph (8) insert—
(8A) Regulations under sub-paragraph (8) may prescribe—
(a) B or D,
(b) in relation to a hereditament for a chargeable day for which the value of A is £500,000 or more, a higher multiplier for the financial year calculated in accordance with regulations under paragraph A6A(1)(a) of Schedule 7, or
(c) in relation to a qualifying retail, hospitality or leisure hereditament, a lower multiplier for the financial year calculated in accordance with regulations under paragraph A6A(1)(b) of that Schedule.
(8B) In sub-paragraph (8A), “qualifying retail, hospitality or leisure hereditament” has such meaning as may be prescribed by the Treasury in regulations.
;
(c) in sub-paragraph (9) after paragraph (e) insert—
(ea) the description of hereditaments in the local non-domestic rating list in which they are shown;
.

4 Consequential amendments

(1) The Local Government Finance Act 1988 is amended as follows.
(2) In section 138 (judicial review), in paragraph (2)(j), for “a non-domestic rating multiplier or small business non-domestic rating multiplier” substitute “any multiplier”.
(3) In section 143 (orders and regulations), in subsection (9)
(a) after “under paragraph” insert “A6A,”;
(b) for “or 5(13A)” substitute “, 5(13A) or 9B”.

5 Review: threshold effect

(1) The Secretary of State must undertake a review of how the provisions in this Act may affect businesses whose rateable value is close to £500,000.
(2) The Secretary of State must lay the review under subsection (1) before Parliament.

6 Use Class for retail services from fulfilment warehouses

(1) Within three months of the day on which this Act is passed, the Secretary of State must instigate a review of the merits of a separate Use Class and associated multiplier for retail services provided by fulfilment warehouses that do not have a material presence on local high streets, to apply in England.
(2) Experts in the sector must be consulted to inform the review, including but not limited to—
(a) the Royal Institute of Chartered Surveyors;
(b) the Institute of Revenues, Rating and Valuation;
(c) the Rating Surveyors’ Association.
(3) The Secretary of State must publish a report of their conclusions and recommendations within three months of the review being instigated, and lay that report before Parliament.
(4) The Secretary of State must implement any recommended changes indicated by the findings of their review within six months of the date on which the report is published.
(5) The Secretary of State may make provision to carry out subsection (4) by regulations made by statutory instrument.
(6) A statutory instrument containing regulations under subsection (5) is subject to annulment in pursuance of a resolution of either House of Parliament.

Final provisions

7 Commencement

(1) Subject to the review required under section 5 having been laid before Parliament three months before the start of the financial year, the amendments made by sections 1 to 4 have effect in respect of financial years beginning on or after 1 April 2026.
(2) The amendments made by section [section removed] have effect in respect of financial years beginning on or after 1 April 2025.

8 Short title

This Act may be cited as the Non-Domestic Rating (Multipliers and Private Schools) Act 2025.