Council Tax (New Valuation Lists for England) Bill

My Lords, I certainly agree that local authorities, including those of the noble Baroness, me and many others, encouraged and stimulated business growth and development. Indeed, we saw that as a badge of pride and as an important element of the local economic development strategy. Perhaps I should have said more precisely that that approach could lead to disparities, if you like, in the wealth generated from the local business rate; the lack of an even base for taxation could lead to severe constraints on the development of local services. The Government have taken measures to increase and stimulate co-operation and liaison between local authorities and local businesses. We have attempted to provide a background to stimulating local economic activity; we have been at pains to ensure that local authorities are not hampered in that regard. Additionally, we have put in place schemes such as the local authority business growth incentives scheme and the business improvement districts scheme, which have now begun to bring some benefit. We recognise to a degree the issues that the noble Baroness raised. Beyond that, we should perhaps await the outcome of Sir Michael Lyons’s final report, as I have no doubt that he will focus time and energy on those important issues. The noble Baroness, Lady Scott, made a valuable contribution. I am grateful for her support for the principles of the Bill, even if that support comes from a different perspective, with which I would probably take issue. She said that, when properties are sold, they are revalued to current values. That is not the case. When a property is sold on and there have been improvements, it may be revalued, but it will be revalued to 1991 values, not to current values.