Question to the Department for Education:

To ask the Secretary of State for Education, what estimate she has made of the change to the level of (a) payment and (b) reimbursement of business rates in (i) her Department and the (ii) Education and Skills Funding Agency between financial years (A) 2025-2026 and (B) 2026-2027.

Since April 2022, most schools’ business rates are paid directly by the department to billing authorities. If all billing authorities in the local authority have not agreed to this system, academies make business rates payments and are reimbursed by the department.

For both of these payment mechanisms, we operate on a reactive basis. Therefore, it is not possible to provide funding totals for either the 2025/26 financial year, as the financial year has not concluded, or 2026/27.

For local authority-maintained schools where the local authority does not have agreement from all billing authorities within it, the department allocates funding to local authorities via the Dedicated Schools Grant (DSG) to cover business rates payments. DSG publications show total funding to local authorities for each financial year:

• 2025/26: https://www.gov.uk/government/publications/dedicated-schools-grant-dsg-2025-to-2026.
• 2026/27: https://www.gov.uk/government/publications/dedicated-schools-grant-dsg-2026-to-2027.