Schools: Non-domestic Rates

(asked on 22nd March 2022) - View Source

Question to the Department for Education:

To ask the Secretary of State for Education, if he will reconsider state schools having to pay full business rates compared to the 20 percent business rates that independent schools pay as a result of their charitable status.


Answered by
Robin Walker Portrait
Robin Walker
This question was answered on 30th March 2022

Local authorities receive funding for business rates through the national funding formula, to meet the full costs of schools’ business rates. This means the costs for local authority-maintained schools’ and academies’ business rates are currently covered by the department and there is no disadvantage to state-funded schools from paying full rates, or advantage from receiving rates relief. The department will pay business rates bills directly to 122 billing authorities on behalf of more than half of local authority maintained schools and academies from April 2022.

Business rates are charged on most non-domestic properties, including schools. Currently, 80% mandatory rates relief is applied to academies, voluntary-aided schools and foundation schools. The majority of special schools also receive full relief because they make provision for children with a disability. In addition, under the Local Government Finance Act 1988, local authorities are permitted to grant relief against the business rate liability to certain charitable and non-profit organisations. Local authorities are able to offer discretionary relief for local authority-maintained schools in their area.

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