§ Mr. FoulkesTo ask the Deputy Prime Minister what estimate he has made of the effect on the rating income of each local authority of the reduced rate of business rates paid by private schools because of their charitable status. [137469]
§ Mr. RaynsfordThere is no reliable basis on which to make such an estimate, as the information collected from local authorities on business rates relief does not distinguish private schools from other charities.
The Local Government Finance Act 1988 provides mandatory rate relief to any ratepayer that is a charity or a non-profit making body operating as a charity and uses the property they occupy wholly or mainly for charitable purposes. A private school which is not run for profit counts as a charity and therefore qualifies for mandatory rate relief.
Mandatory relief is available at 80 per cent. of the full rates bill and is fully centrally funded but can be increased to 100 per cent. at the discretion of local authorities. The discretionary increase is 25 per cent. centrally funded, and local authorities are required to meet the remaining 75 per cent. of any increase.