Business Rate Supplements Bill

A number of amendments in this group explore the relationship between the levying and billing authorities. That will clearly be a key element in the smooth running of any BRS project in two-tier areas. Amendment 44A raises an important issue about that relationship, which we quite appreciate. It provides that billing authorities need not accept a levying authority delegating to them the function of running a BRS ballot. It allows a billing authority which does accept the delegation of that function to impose conditions on that acceptance and to charge for running the ballot. First, I certainly agree with the spirit of the amendment and hope to show the noble Baroness that it is not strictly necessary. A levying authority simply could not force a billing authority to undertake ballot functions other than by agreement. In the consultation paper, which we publish this week, we are inviting views on whether levying authorities should have powers to delegate the function of running the ballot to one or more of the billing authorities in its area. If stakeholders feel that there should be some flexibility for levying authorities to decide how to run ballots, this would be agreed locally. A levying authority could not force a billing authority in practice, nor could it rely on Clause 9 to do it. In the consultation paper, we also address the issue of any costs that might be incurred by a billing authority in running a ballot for a levying authority. Our view is that this is something that levying authorities and billing authorities should be able to reach agreement on. This is clearly now a matter for consultation, and we will be interested to see how stakeholders respond to those issues. Clause 9 ensures that levying authorities have the power not to run the ballot themselves. However, it does not force billing authorities to undertake those functions. Amendment 45 would require a levying authority to consult the billing authorities in its area if it wanted to change an existing BRS in a way that was not anticipated as a possibility in the prospectus. I agree with the noble Baroness that it is important that all those who will be affected by a variation in an existing BRS should be able to have their say about the proposed changes. Again, I reassure the noble Baroness that provision is already made for this. Clause 10(5) makes it clear that, when consulting on a proposed variation, Clause 6 applies in the same way as it does to a consultation on a new BRS. Therefore, the levying authorities are already required to consult lower-tier authorities in their area if they want to propose a variation to an existing BRS. Amendments 57 and 57A are about the notice that a levying authority must give to the billing authorities in the area requiring them to commence billing. I assure the noble Baroness that she was right in what she said. Amendment 57 is concerned with BRSs that are to be billed for with effect from the beginning of a financial year. Currently, the levying authority will need to serve notice on billing authorities before 1 March if they want to levy the supplement from the start of the annual billing round on 1 April. That means requiring levying authorities to provide notice before 1 February, a month earlier. Amendment 57A, as I understand it, would require a levying authority to give a minimum of 30 days’ notice to billing authorities if they want their BRS to be first levied partway through a financial year. I absolutely understand the concern that billing authorities must have adequate notice of a BRS. Obviously they need to ensure that they have time to make the necessary arrangements. The 1 March deadline for BRS, which will be billed from 1 April was, as the noble Baroness suggested, chosen for consistency with the upper tier authority’s timetable and that of the GLA to issue its council tax precepts for the forthcoming year and within the budget-setting process. The rationale is to ensure that the arrangements dovetail with the existing administrative arrangements as far as possible. In that way the administrative burden on levying and billing authorities should be minimised. It will also avoid potential confusion that would be caused by having different timetables for different preparations needed before the commencement of the financial year. Obviously, if the amendment were accepted all the benefits of consistency would be lost and the BRS would be running to a different timetable. On top of that, the amendment could also cause problems in the short to medium-term. The GLA, which intends to levy a BRS from 1 April 2010 as part of the funding package for Crossrail, could well face difficulties in meeting the timetable proposed by the amendment. The timetable is particularly tight considering that before the levying authority can notify the billing authority it will have to have prepared a prospectus, completed the mandatory consultation and revised the proposals as necessary. To shorten it by just a month would put additional pressure on the timetable. That is unnecessary, given the longer-term considerations of marrying preparations needed for the start of the financial year. The issue with a BRS that is to start part-way through a financial year is slightly different. For that we have not put in place a specific timetable for a notice that must be served for billing to commence. Again, it is consistent with the wider framework of the Bill, but we expect that billing mid-year for BRS will be the exception, not the norm. It is right that we allow for flexibility but it will lead to a greater administrative burden, not just for billing authorities but for business as well. Because of that the timetable has to be agreed between the levying authority and the billing authority. The approach of not prescribing a timetable fits in with our general policy of allowing as much discretion as possible, which is the right approach here. Amendment 64 concerns the consultation arrangements on the regulations covering the collection and enforcement of BRS. It would require consultation on the draft regulations to start within one month of the commencement of the Act—assuming it reaches Royal Assent—and to be made no later than 30 September 2009. I understand why the noble Baroness has posited her argument and her concern that there should be adequate consultation on the arrangements for collecting and enforcing BRS. The final arrangements also need to be in place in good time to enable levying and billing authorities to complete the necessary preparations. In our consultation paper on Wednesday we set out our proposals on collection and enforcement, which will later be reflected in the regulations made under Clause 21. Consulting on the policy as opposed to the draft regulations provides us with greater flexibility to set out the various options and their respective pros and cons. Frankly, I think that that is the key to a better consultation, and certainly one on which the partners feel they have more influence. It is more effective than if we were simply presenting what would look like near finalised regulations. It is therefore an important opportunity for billing and levying authorities, business and other partners to consider the proposals in detail and to provide feedback before the regulations are laid before both Houses for consideration. The noble Baroness said that the timetable was very tight and I agree that it is unnecessarily restrictive. The consultation will give billing and levying authorities a good indication as to how collection and enforcement arrangements might work, albeit subject to consultation. Obviously, we appreciate that levying authorities will want to have administrative arrangements at the earliest opportunity, but I cannot give noble Lords a definitive timetable for laying the regulations. Clearly we want them in place as soon as possible, and we shall do that in the autumn, which is as much as I can say at the moment. The noble Lord, Lord Bates, asked about the regulations for Crossrail, and I can tell him that we are currently aiming for mid-October. That is a more specific timetable because much more preparation has already gone into them. We aim to have the general set of regulations as soon as possible after the consultation period has finished in the autumn.