Business Rate Supplements Bill

We return now to the issue that has been fairly central to some of the earlier discussion of the Bill—its extent. My amendment replicates one that gave rise to a major debate in Committee. We contend that in the current circumstances the introduction of a nationwide power to levy what is calculated, on any view, to be the better part of a £600 million potential tax burden on businesses is inappropriate and likely to be damaging to the overall interests of the economy. This is not to do with the overall intellectual arguments for or against business rate supplements; the fact is that often in politics practical timing is a key consideration. For reasons that were well rehearsed on Second Reading and in Committee, we believe that there is a real risk that local authorities will feel pressured to resort to this as a means of raising funding right across the board. An exception to that relates to the Crossrail project in London. The amendment would limit the scope of the Bill to London—to the Greater London Authority, the top-tier authority, which it is proposed, together with its functional bodies, will carry out the Crossrail project. The amendment would limit the scope to Crossrail because the Mayor of London, who was prayed in aid in the debate on an earlier group of amendments, has made it clear that although he wishes to be given the power to levy a supplementary business rate in relation to Crossrail, he does not intend to use it other than for Crossrail, purely on the basis of saying, "Let's get Crossrail going." As a London Member of Parliament, I agree with the right hon. Member for Greenwich and Woolwich (Mr. Raynsford) about the importance of Crossrail to the London economy; I am conscious that it will have real and considerable benefits, and I am anxious to ensure that we do not impede its progress. However, there are differences between the Crossrail project and a nationwide roll-out of the scheme.