Lord Khan of Burnley (Lab)

My Lords, Amendments 55 and 62 seek to carve out from the Bill all private schools that charge fees of less than £27,642 per year through exempting schools that meet this criteria from the definition of a private school. I am conscious that other amendments tabled by noble Lords seek to carve out other private schools from the Bill definition, and we will discuss these in more detail as part of today’s proceedings. However, it would be helpful for me to set out the purpose of Clause 5 for when the Committee decides whether to agree the clause. At the same time, I can elaborate further on the meaning of “or other consideration” as per Amendments 56 and 59, and the use of “private school” as opposed to “independent school” in response to the amendments in the name of the noble Lord, Lord Lexden. The Government believe in parental choice but are also determined to fulfil the aspiration of every parent to get the best education for their child. The removal of business rates charitable relief, as set out in Clause 5, legislates for the Government’s commitment to secure additional funding to help deliver the Government’s commitment to education and young people, including the more than 90% of children who are educated in state schools. Clause 5 removes the charitable rate relief from private schools by amending paragraph 2 of Schedule 4ZA and paragraph 2 of Schedule 4ZB to the Local Government Finance Act 1988 to exclude private schools from the rules in relation to the application of charitable rate relief. Amendments to the rules in relation to the application of charitable relief can be made only through primary legislation. The Bill inserts new sub-paragraph (3) to paragraph 2 of Schedule 4ZA to remove charitable relief from occupied hereditaments wholly or mainly used for the purposes of carrying on a private school. Ancillary and support buildings, such as offices, will also lose their relief—for example, classrooms and sports fields that are wholly or mainly used for the purposes of a private school. The rest of Clause 5(2) is concerned with the definition of a private school. To answer directly the points raised by the noble Lord, Lord Lexden, the terminology “private school” has been used because the term “independent school” includes state-funded academies, which are not in scope of this policy and therefore of the measures in the Bill. The term “private school” has been used to avoid uncertainty regarding which schools are in scope, and I am sure it is not the noble Lord’s intention to bring academies into scope of this Bill.