Business Rate Supplements Bill

I am very grateful to the noble Lord for his gracious offer. We are discussing a complex concept and are dealing with different timescales for different BRSs, within which periods there may be different opportunities for re-evaluation, and so on. It is difficult to be categorical, apart from the general principle that I am trying to explain, but clearly failing to do so. I would appreciate the opportunity to write to noble Lords to try to set out some models of how I think this will operate. I turn to Amendments 39 and 40, with which I hope I will have more success. They would require levying authorities to publish the results of the consultation on the initial prospectus. Amendment 40 would require levying authorities to publish a revised initial prospectus following the consultation but before the publication of the final prospectus. I completely understand that a consultation process needs to be transparent, it must demonstrate that the concerns and comments regarding the BRS will be taken seriously and that that will be reflected in the final plans for the project. I agree. That is why, following the consultation, levying authorities will be required to publish a final prospectus incorporating the comments and views expressed, reflecting how the supplement will work following the comments made by local businesses and others. That final prospectus will provide local business with clear information on the details of the supplement to be implemented, and there should be absolutely no surprises for business at that stage. It should mean that there is certainty about the level of the supplement, its duration and so on. There will be clarity on the expected costs and benefit of the project that will take on board comments made during the consultation, and we will be clear about how the supplement might have changed as a result of the consultation. It might reasonably be anticipated that if local businesses have been involved in the development of the project the consultation would not raise any significant issues or objections. It would be the final stage in an ongoing process and, therefore, modifications would be relatively minor. However, I understand that things do not always go according to plan. Clause 6(6), therefore, is designed to make it clear that there is flexibility in the process. If the proposals need substantial revision as a result of the consultation, Clause 6(6) requires the levying authority to publish a revised initial prospectus if the authority thinks it necessary or appropriate to do so. This would allow the levying authority to seek comments on the revised proposal, including funding, before finalising the details of the project and the supplement. However, that will not always be necessary. To require a revised initial prospectus in all cases goes further than what will be needed in many cases and perhaps not far enough in a few rare cases. We should allow local authorities the flexibility to decide what is right for their area and for their proposal. To require a revised initial prospectus in all cases goes further than the usual consultation process and may not always be necessary. As a revised version, rather than minor variations, of the initial prospectus will not always be necessary, it would be inappropriate to make this a mandatory aspect of the BRS process in the Bill. As I tried to highlight when we were discussing Clause 5, the BRS sets a minimum standard in terms of the consultation process. Other steps may well be appropriate depending on the specific circumstances of the project—in this case, substantial revisions to the prospectus following the consultation. Again, I feel that that should be left to local discretion and appropriate action. I turn to Amendment 39. In carrying out the consultation, levying authorities will be expected to follow best practice, including publishing the results of the consultation. Therefore, since local authorities will be expected—and expect—to do that, the amendment is unnecessary. Amendment 46A relates to the consultation arrangements in place for when a levying authority wants to vary a BRS in a way that is not highlighted even as a possibility in the prospectus, which would be a major and unprecedented change. Clause 10(2) and (3) requires that, in such cases, the levying authority sets out its proposals in a variation proposal document. This document will then be used as the basis for a consultation on the proposed change, mirroring the prospectus and consultation arrangements for a new BRS. Amendment 46A would require levying authorities to set out in the variation proposal document what changes they wanted to make to the BRS chargeable amount. That is a fair enough point, but it is unnecessary for two reasons. First, a variation to a BRS will not always affect the chargeable amount; for example, an authority might want to extend the duration of the supplement without changing the chargeable amount. Secondly, and more importantly, the Bill already makes provision which the noble Lord is seeking. Where the chargeable amount is to change, Clause 10(2)(a) requires that this is set out in the variation proposal document. Therefore, the Bill makes it clear that if the levying authority wants to alter the chargeable amount in a way that was not set out as a possibility in the prospectus, details of the change will need to be set out in the proposed variation document and therefore consulted on. Amendments 63 and 66 relate to the consultation and scrutiny arrangements for the regulations that the Government will in due course make, assuming that the Bill is successfully passed. Amendment 63 would require a consultation on a number of regulations to be made. I draw noble Lords’ attention to the consultation paper that the Government published on Wednesday 13 May—I should say in response to an earlier point that the hard copies were made available on Thursday, and I am sorry if noble Lords did not lay their hands on them. The paper sets out the detailed policy proposals on how levying authorities will be expected to administer BRS, such as the accounting and ballot arrangements. It also sets out how the Government envisage that billing authorities might recoup the costs of collection. The consultation will be open until 19 August and will provide an opportunity for local authorities and businesses to comment on the detailed running arrangements for BRS prior to the laying of the regulations. That is a full three-month consultation process that will be formative in the role of business in working through those regulations. Amendment 66 would require the regulations on the detailed ballot arrangements to be subject to the affirmative procedure, and the same for the regulations governing the appeals process for the apportionment of rateable value of partially empty properties. The Bill as drafted is consistent with provisions already place. I have spoken before about how we have tried to mirror the BID arrangements wherever possible for BRS, because people are familiar with them. The regulations governing the ballot process for BIDs are subject to the negative resolution procedure. The regulations on the apportionment of rateable value for partially empty properties for business rates in general—as opposed to BRS—are also subject to the negative resolution procedure. As BRS builds on the national business rates system, it makes sense that the regulations should be subject to the same procedure. In terms of the content of the regulations on BRS, we have made our intention clear; the BRS will be consistent with the processes already in place for national business rates and BIDs, so there should not be any surprises. I am conscious that what we have been discussing is rather technical and detailed, and I am happy to meet noble Lords to talk about that process between now and Report, if that would be helpful.