Business Rate Supplements Bill

Voluntary contributions are welcome, but it follows from the right hon. Gentleman’s logic that those who pay should take part in a ballot so that they are represented; otherwise, it would be taxation without representation. That does not detract from the valuable role that voluntary contributions play in BIDs, nor does it undermine the argument that those who are liable to pay the BRS should have a ballot before the scheme is introduced. The point is simple, and would improve the Bill’s credibility hugely. It is difficult to understand why the Government have not given way on that, and I hope that they will reflect on it if the Bill progresses to Committee. I want to raise some issues about safeguards. First, the most important safeguard, which all businesses say that they want, is the compulsory ballot, and I have discussed that. The second issue is the threshold. The Bill does not specify what it will be. The Minister said that the intention—I do not doubt it—is that it should be £50,000 rateable value, but we must make allowance for the fact that there will be a revaluation of business rates in 2010, so many more businesses are likely to be above the threshold. The suggestion that nine in 10 businesses will not pay is unlikely to be the case. Surely, the Government should give a commitment—perhaps they could put it in the Bill—to review the threshold after each revaluation. It seems only fair and reasonable to provide businesses with that further protection. There is concern about the definitions in the Bill. I appreciate that it contains some definitions of what the BRS cannot be spent on, but it is interesting that that is the opposite approach to that adopted for the community infrastructure levy in the Planning Act 2008, which contains a specific definition of what can be the aim of a CIL. Why have the Government adopted virtually the opposite approach in the Bill? A tighter and specific definition of economic development would help businesses. Some people are worried about the administrative costs of a two-tier structure, and several London boroughs have asked for an assurance that their administrative costs will be met within the costs of the BRS. I hope that the Minister will respond to that. Those are a number of specific and quite technical points that we might return to in Committee, but they do not take away from the overall thrust of our argument, which is that in a sense this is a form of taxation without representation. I may have spent some of Christmas watching ““John Adams”” on Channel 4—a very fine series it was too—but I do not want to see the Minister cast as a sort of General Gage, imposing these imposts on business. He does not look at all like Lord North. However, there is a real risk that the relationship that has been built up in good authorities will be damaged. The provision is a burden on businesses at a time when only today we have seen the Prime Minister on television announcing yet another set of supposed initiatives to try to help in an economic downturn. However, it is not the words that count but the deeds. At the same time as we have the spin about more investment in jobs, the Government, as their first legislative act, are introducing a Bill that will impose a burden on businesses and therefore be a threat to jobs.