Lord Khan of Burnley (Lab)

My Lords, I will now speak to Amendments 67 and 69 in the name of the noble Lord, Lord Moynihan. I just let him know that I have a great passion for rowing, developed at the time of Redgrave and Pinsent. Unfortunately, I was only two years old when the noble Lord won the silver medal in Munich in 1981, so I cannot classify him as my hero, but I know that he will be a hero to many across the country and the world. These proposed amendments seek to introduce a carve-out in the Bill for private schools where 10% of students are in receipt of a bursary or scholarship for sporting excellence. I am aware that this type of fee support can be provided to any pupil who meets the requirements set by an individual private school; similarly, it can be provided on a means-tested basis. The other amendment tabled by the noble Lord, Lord Moynihan, seeks to ensure that no part of a private school that is used primarily for sport is included in the valuation of the school for business rates. Providing means-tested fee assistance is one way in which charitable private schools can demonstrate public benefit—a requirement that accompanies charitable status. As I have stated elsewhere, the Bill does not remove the charitable status of private schools, and the Government expect them to continue to demonstrate public benefit, whether that is through the provision of means-tested bursaries or through other means, such as sharing facilities or working with state sector schools. Ending the VAT and business rates tax breaks on private schools is a tough but necessary decision to help deliver on the Government’s ambition to eliminate barriers to opportunity by concentrating on the broader picture and towards the state sector, where over 90% of children in England are educated. Barriers to opportunity also appear in the sporting world, as I am sure the noble Lord is aware. The Government are committed to improving access to sports and physical activity for all. Everybody, no matter who they are or where they are in the country, should have access to the best possible provision of sports facilities and opportunities to get active. These amendments would reduce the scope of the Bill measure by removing private schools from the definition and thus reducing the amount of revenue raised. This would limit the additional funding secured to help deliver the Government’s commitments on education and younger people. Furthermore, it would be operationally unfeasible to implement requiring local authorities to audit the financial operations of charitable private schools to ascertain whether they meet the threshold, as per the amendments, when calculating their business rates bill for the financial year. I shall now address the other amendment in the name of the noble Lord, Lord Moynihan. I understand that part of the reason for it is a recognition that some private schools share their sporting facilities with neighbouring schools or the general public. As I have said, the Government expect private schools that wish to remain charities to continue to demonstrate a public benefit, such as by making their sporting facilities available more generally. That will not change. The amendment seeks to remove sports grounds from rating valuations. Exemptions of this nature, where part or all of a hereditament is removed entirely from rating valuations, are the most general and exceptional forms of support in business rates. They are reserved for cases such as agricultural land, places of public religious worship and, as we have already heard during the passage of this Bill, certain property used for disabled persons. Despite the clear value of shared sports facilities at private schools, I do not think that it would be right to confer upon them such a level of benefit, especially when exemptions of this nature are not available to other sports facilities or even to charities more generally. Although these facilities are being used for sports and may be shared with the community, they remain part of private schools and are clearly used for their purpose; indeed, for many private schools, such sports facilities are a vital part of their offer to parents. It would therefore hardly be consistent with the overall purpose of Clause 5 to exclude them. This story is very personal to me because I was an aspiring cricketer and did not make it through the system. I know that that was because of a lack of facilities and support at my local clubs and my local school, so I understand entirely the premise of what the noble Lord, Lord Moynihan, is attempting to do. I say to him and the noble Baroness, Lady Barran, that I will take this matter away and reflect on it; I will speak to colleagues, officials and other colleagues in the Treasury. Let me let noble Lords know that the Government are committed to improving access to sport and physical activity for everybody. Sport and physical activity are central to achieving our health and opportunity manifesto missions, with the biggest gains coming from supporting those who are inactive to move more. Everyone, no matter who they are or where they are in the country, should have access to the best possible sports provision and facilities. The Government’s arm’s-length body, Sport England, is investing £120 million between 2025 and 2029 to increase participation in sport and boost diversity at the grass-roots level in order to give more and better opportunities to all young people to explore and develop their potential. This funding will increase and enhance opportunities for talented young athletes in England to explore and develop their athletic potential, regardless of their background or financial circumstances. Through creating more inclusive talent pathways, the Government want to increase participation in sport and boost diversity at the grass-roots level in order to give all young people more—and better—opportunities to explore and develop their potential. Sport England also wants to drive greater diversity within national teams, which will in turn demonstrate to the next generation of young people that they could have the same potential to reach the Games. The PE and sport premium is a ring-fenced grant for eligible primary schools and other educational establishments. In March 2023, as noble Lords will recall, the previous Government announced more than £600 million of funding for the 2023-24 and 2024-25 academic years. Schools must use funding to make additional and sustainable improvements to the quality of the PE, sport and physical activity that they provide. I just want to say that this is a vital debate. I thank the noble Lord, Lord Moynihan, for his contribution. The noble Baroness, Lady Barran, said something interesting: she was not interested in sport early on but got into it in later life. Let me be absolutely clear: I learned to swim only last year. I was taught by my daughter; my 10 year-old daughter taught me to swim. I would have loved to have swum much earlier but I did not have the opportunity, resources or means to do that, so I recognise exactly the sensitive nature of what we are trying to do. The Government are supporting this through their work and funding. In particular, I recognise that the PE and sports premium is a ring-fenced grant. We must make sure that all children are supported. I thank the noble Lord for his contribution but, for the reasons I have set out previously, at this moment in time, I am unable to accept these amendments; however, I hope to go away and reflect on what the noble Lord said. In the meantime, I hope that I have provided the noble Lord with satisfactory information in relation to the difficulties and technicalities in these amendments, and I ask him to withdraw his amendment.