Business Rate Supplements Bill

Amendment 51 would mean that, where a person was liable for a business improvement district levy and subject to the business rate supplement imposed by that authority, the chargeable amount payable in reference to the business rate supplement would be offset to avoid double-charging. Amendments 53 and 54 also stand in my name and that of my noble friend Lord Cathcart. Amendment 53 would leave out the words, ""to the extent specified in the rules"," and Amendment 54 would leave out subsection (4), which states how the rules must be made. As the Bill stands, the levying authority is enabled to make rules regarding what to do when a person is liable for a business improvement district levy and subject to a business rate supplement. Our amendments would remove the levying authority’s right to make rules about that and, instead, specify that liability for the business improvement district levy would be offset against the amount that the person would pay for the business rate supplement. Amendment 55A, which is consequential, would add the words: ""This section does not apply to the Crossrail project"," which may come as some relief to the mayor’s office, if to no one else. The argument for this proposal is obvious in that businesses could well see themselves being charged twice for the schemes. The whole issue of additionality under this heading is also brought into question. We do not want to risk harming the business improvement district schemes. Everyone has said that, where they operate—and of course some, such as the New West End Company, operate here in the capital—they seem to do a very good job of integrating businesses and improving the local area, and we do not want to harm them. At the same time, huge pressures are currently being put on businesses, as I mentioned earlier. Therefore, the fear that levying authorities will raise a business rate supplement but at a sufficiently low threshold so that a ballot is not triggered is real. Because businesses are under so much pressure, they will not be able to vote against the business rate supplement and will then be forced to vote against the business improvement district levy where they do not have a vote on the community improvement levy. So there are a range of schemes. The amendments aim simply to remove duplication and introduce tax simplification. Taxation under this Government has become a nightmare for anyone involved in business—perhaps not so for the accountants, who I am sure quite welcome the complexity. Simplicity in dealing with these matters will be very important in monitoring progress and engaging local businesses in projects to improve their local communities. With that explanation and those caveats, I beg to move.