Rating (Empty Properties) Bill

I completely apologise for getting wrong the author of the windy night argument; I cannot think why I did that. We are trying to be fair and to stop tax avoidance. We also want to recognise that there may well be good reasons why a property could not be occupied. I repeat that the Valuation Office will have this matter within its remit, not least of course through its very successful computer database, which is the source of much excitement on the Conservative Benches. Newham and Hackney were mentioned. I would not claim to be an expert on the property market in those two parts of London, but Newham is one of the authorities involved in our new targeted 100 per cent. allowance for renovation of long term empty properties. That is a good example of how we are trying to ensure that policies are more locally sensitive. Sometimes we may not get it wholly right, but we do listen to these arguments. The admin burdens were referred to and I have tried to cover that point. I have looked at this because although Revenue and Customs is the lead department for the Valuation Office, policy and operational matters are an issue for my Department. We have consulted on that point and we are working closely with the Local Government Association and the Institute of Revenues Rating and Valuation to ensure that we get this right. We are confident on that point. My hon. Friend the Member for Stoke-on-Trent, North talked about regeneration and I am familiar with that issue in regard to her constituency. I hope to be able to announce the details of the commission on democracy in Stoke-on-Trent—both its membership and remit—very shortly. I thank my hon. Friend for her assistance in this regard. Regeneration is central to our goals in that area. Stoke-on-Trent is an assisted area, with 100 per cent capital allowances. I am grateful for my hon. Friend’s comments on the neighbourhood renewal fund and its future. My hon. Friend the Financial Secretary is attending urgent business; I should have put on the record earlier that he had to leave to attend the Finance Bill Committee. I know that he heard what my hon. Friend said; I know that because I kicked him when she said it to ensure that he did. The neighbourhood renewal fund in her area has proved to be very important. I come back to my point about low demand and low value; rents are low in areas where properties are empty simply because there is no demand. My hon. Friend raised an important point about listed buildings and we will be looking at that. It is important; we all know of examples of listed buildings that are empty and, perhaps because of their listed status, cannot be rented out. The hon. Member for St. Albans (Anne Main) is not here, but she has informed us of the Rex cinema in St. Albans. I looked into that because I have a love for cinemas. I am looking at why Brixton was able to regenerate its cinema, but St. Albans has not been able to do so thus far. I can see you frowning, Madam Deputy Speaker, so I will move on. The hon. Member for Inverness, Nairn, Badenoch and Strathspey talked about the process of the Bill. I hope I have convinced him that we did take seriously the consultation on the Barker and Lyons reviews and the pre-consultation in the period since. We have had the usual consultation that my hon. Friend the Financial Secretary has talked about, but this is a finance measure coming out of a Budget. There are good reasons for that, but I hope that I can reassure him about the purpose of the Bill and its impact on revenue. The policy will bring about a reduction in rental values, so the revenue we raise from it will diminish over time if we are successful. The hon. Gentleman asked whether the policy has been rural-proofed and what information will be placed in the Library. I have answered that by mentioning the regulatory impact assessment. Rural business rate reliefs provide substantial support for rural businesses in respect of empty properties. Every area and sector could, of course, argue for special treatment, but that one is a special case. The hon. Gentleman and many other Members asked about the three-month period question. The period is laid down in existing regulations for offices and retail premises, and the Conservative party those regulations. We wish to give all property the same tax treatment. The hon. Gentleman asked about reviews of other business rate reliefs and exemptions. We will take forward Sir Michael Lyons’s recommendations on that. The hon. Gentleman also asked about social enterprises and companies. To tease him, his party is always asking for certain categories of business to be exempt, but it never points out the consequences of that for other categories of business. To be more serious, however, we will look into that matter, as he made an important point about the growth of the third sector—of social enterprise organisations. The hon. Gentleman asked about local councils. I repeat what I said about the support of Hampshire county, Hull, West Sussex, Birmingham, Essex and Kent, because that is a strong point. The hon. Member for Surrey Heath accused us of rushing to plunder and argued that the measure would breach the retail prices index cap. That argument misunderstands how the multiplier works. I can give him a lesson on the algebraic formula in clause 1 if he wishes. I should also point out that there are two multipliers, as there is a different one for small businesses—it is not always understood that we provide help to such businesses. The hon. Gentleman then contradicted his argument by saying that we would damage pension funds because rents would decrease. As I have said, both arguments cannot be true. However, the hon. Gentleman was gracious enough to praise the Financial Secretary’s thoroughness and eloquence, although he did not say that about my contribution, for which I cannot blame him. [Interruption.] The hon. Gentleman says from a sedentary position that that goes without saying. He made an eloquent argument that was well researched and based on a false premise—which I suppose is what the journalistic trade teaches its practitioners. Some areas of our country have the highest rents in the developed world and also high empty property rates. That is a silly situation, and this policy is intended to change it. We have the RPI cap on the multiplier to protect businesses, and that has proved to be sustainable. We have provided ample time for this debate, and we have another debate next week to look forward to, in which we can address matters of detail, rather than of policy and principle, which is the proper subject of a Second Reading debate. I believe that I have answered all the questions asked in our debate, and that the Comptroller of Her Majesty's Household, my right hon. Friend the Member for Rutherglen and Hamilton, West (Mr. McAvoy) is happy. My hon. Friend the Minister for Housing and Planning is in the Chamber, so I shall conclude. Question put and agreed to. Bill accordingly read a Second time.