Business Rate Supplements Bill

I appreciate that, but I am sure that the right hon. Gentleman will also appreciate that some benefits will be more apparent, more direct and more extensive in certain parts of London in comparison with others—an inevitable consequence of living in a capital city. The issue is whether the Greater London authority rather than the boroughs provides the right way to implement the legislation. The exclusion of the City of London and the 32 London boroughs from those able to fund local development through an SBR highlights the importance of ensuring that the community infrastructure levy introduced by the Planning Act 2008, which can be levied at either the GLA or city-borough level, is available to fund genuinely local projects. The case for such a measure is further strengthened by the Mayor’s proposed changes to the London plan. They will enable him to fund £300 million of his contribution to Crossrail from money obtained through the City and some of the boroughs via section 106 planning agreements made with developers in London’s central activity zone. The requirement in the Bill for the Mayor to consult the City, as with the London boroughs, on any proposal to impose an SBR is in my view welcome, but I also understand the concern that consultation in this context may not be enough; there needs to be a sense of consultation with a certain amount of teeth. I hope that the Bill will not include an entitlement for any of the London boroughs to propose projects to be supported by SBRs without there being a proper dialogue in developing ideas for those projects. Of course, this is not immediately relevant, given that in London the SBR will initially be used just to fund Crossrail, but the situation cannot continue indefinitely. The Bill’s formal consultation processes regarding who will pay for the supplementary business rate in London will also provide an opportunity to record business support for Crossrail. This support has been demonstrated by the substantial financial commitments made by BAA, to the tune of £230 million, and by the Canary Wharf Group, which has committed £150 million. The City Corporation has agreed to a direct contribution of some £200 million to Crossrail, and has guaranteed another £50 million from the further contribution of £150 million that it is trying to attract from businesses at large. Although I have long had some reservations about the route that Crossrail takes, now that the hybrid Bill is on the statute book it is essential that we avoid delay, because a delay will only result in crippling planning blight for those businesses and individuals who would otherwise be affected by the work. There will be some very important medium-term benefits from Crossrail. The demand for some 14,000 jobs during its construction will be an important source of employment during what promises otherwise to be very difficult economic conditions here in the capital. However, it is also an important signal to the world at large about London’s intention to invest for the longer term. Delay now would betray a lack of self-confidence in our capital in its role as a leading global city. I want to finish on a practical note. The detailed provisions on the consultation process and the collection of the supplement suggest some significant complexities and additional expense for the billing authorities, including the City of London itself. We believe that the most practical way to collect the supplement would be together with the non-domestic rate, if that is what the Minister has in mind. I appreciate that this is likely to be discussed at a practical level in Committee, but I wanted to put on the record my concern, given the projected early introduction in London to satisfy the Crossrail financing requirements, that the administrative detail will need to be swiftly settled in order that the software can be adjusted in readiness for any such circumstances. I regret that I will be joining my Front-Bench colleagues in opposing the Bill tonight because I am concerned that this is not the right time to put such legislation into place. There are some important practical issues that will need to be ironed out, assuming that the Bill gets a Second Reading and goes through to Committee. There are also some important issues of principle regarding such legislation, which I would not entirely oppose. This has been an important opportunity for us to discuss them, but we will no doubt do so in the months and years ahead if supplementary business rates become a part of the horizon affecting both businesses and local authorities in the future.