Business Rate Supplements Bill

On the contrary. The right hon. Gentleman will know the importance of major infrastructure investment such as Crossrail to the long-term health of the economy of London. He must be aware that, were we to lose confidence and cancel Crossrail, which would be the implication of not proceeding with the Bill, that would have a devastating long-term impact on London's reputation and its economic viability. It is precisely because it is necessary, even in difficult times, to help to support appropriate investment that will help our economy and business, that such arrangements are necessary. British BIDs has told us that income from voluntary contributions in the Heart of London, another central London BID, have reduced by 34 per cent. in its first three years, so there is a risk of declining income through change of ownership. Thirdly, there is growing resentment among the owners who are making voluntary contributions at what they rightly see as freeloading by other property owners in the BID area who get the benefit of the work of the BID without having to make any contribution. For all those reasons, there is a strong case for revisiting the option of introducing a property owner levy in BID areas. That is given added urgency by the introduction of BRS, which, as I have emphasised, could threaten the survival of several BIDs. To overcome the objections, notably the cost and time necessary to compile a national property owners register, which prevented this being undertaken when BIDs were introduced, the new clause would apply only in very limited circumstances: first, in areas where BIDs have already been established; and secondly, in areas where a business rate supplement has been introduced. In effect, therefore, the new clause, if it is accepted, will apply only in the early years of business rate supplement within the London area, where there is the only BRS scheme that is likely to be ready to start from 1 April 2010. Even when BRS is picked up in other parts of the country, the provision will apply only in those areas where there is both a BID already in existence and where the BRS scheme is to be applied. The provisions in the new clause are permissive; they do not require the imposition of a property owner levy. They allow it in circumstances where the existing BID company, board or governing body—I wholly take the point about the need for flexibility in such arrangements, which we debated under the previous group of amendments—decides that it is in favour of pursuing this, subject to exactly similar balloting arrangements as apply in the case of a property occupier levy. In other words, there must be a double-key ballot: a majority vote among the property occupiers and, for the owners levy, the majority of owners voting yes along with the majority of rateable value. Essentially, there has to be support from both large and small-scale occupiers or owners to ensure success. One cannot simply load a cost on to others. That safeguard has worked well in the case of BIDs, and the new clause provides that that should be applied equally in the case of the owner levy.