Business Rate Supplements Bill

My Lords, Amendments 11 and 12 were the subject of a comprehensive debate in this House on Report. They were intended to prevent BRS liability increasing retrospectively where a rating list is amended with effect from an earlier day. Members across the House set out their positions and there was a debate about the situation in some ports, where backdated rates bills have been issued. For the Government, my noble friend Lord Davies of Oldham described the key issue of principle; that is, it is right that businesses will be asked to pay the BRS due on their property and to pay at the correct level. My noble friend argued that the alternative is a situation where we have businesses occupying properties at the same rateable value being liable for different bills. After it was accepted by this House that the amendments will return to the other place for consideration, there was a further lengthy debate on the principle of the amendments. Members from across the House put their positions both in relation to the amendments and the wider issues that they reflect. On Division, the other place voted to reject the amendments. My honourable friend, the then Minister Sarah McCarthy-Fry, reminded the other place that BRS builds on the non-domestic rating system. She said that rating lists can be changed by valuation officers to ensure accuracy and, with that, the accuracy of rates liability. Sometimes this can lead to backdated increases in rates liability; sometimes it can lead to backdated decreases and, therefore, refunds. She acknowledged that there is the possibility of backdated increases in rateable value causing higher BRS bills than businesses were anticipating. However, the practicalities involved in ascertaining the need for changes to a rating list and then establishing what change is required mean backdating is an essential part of the normal functioning of the system. That is why the Government consider it should apply to non-domestic rates and to BRS equally. The principle of these amendments has been debated fully in this House and in the other place. However, as noble Lords are aware, the Speaker of the other place designated the amendments as infringing financial privilege. As a consequence, the message that has been sent to this House is that the reason the amendments have been rejected is that they affect the levy of local revenue. In those circumstances, as noble Lords are aware, this House cannot insist on its amendments and, bearing that in mind, I beg to move that the House does not insist on Amendments 11 and 12.