Non-Domestic Rating (Deferred Payments) (England) Regulations 2009

I do not accept that position. That is part of the confusion around this. There was a change from the old basis of dealing with ports but, even when that basis was in place, those hereditaments that were exclusively occupied and under control were still subject to rating in the normal way. The change generally for ports did not change any of that and businesses should be well aware that they should be subject to business rates. So I do not accept the noble Earl’s point. I have given one of the three important reasons why we cannot waive the backdated liability. Why are we backdating? It is due to constant changes to the commercial property market. In this way, the system seeks to ensure that all rateable property pays its fair amount of rates, from the point at which the property should be rated, and with all businesses being treated equally. It is not in those terms anything like equivalent to what might be commonly known as retrospective taxation. The requirement to backdate liabilities is set out in legislation. It is important to note that, apart from the new port businesses, the CLG does not receive representations on the general backdating of rates liability. It is accepted as part of the system. The second reason we cannot waive the liability, especially under the deferred payment regulations, is because the statutory framework gives no discretion to remove a liability to taxation. This is the advice that we have received, although we have recently been notified of a different view, and I shall certainly follow up on that point. I do not say that we accept it; our advice is that primary legislation would be required to undo the effective date from which properties have already been added to the rating list.