Extracts from Lords
motion to approve the Non-Domestic Rating (Rates Retention)
and (Levy and Safety Net) (Amendment) Regulations 2017
(Lab):...There is
also a real problem, not dealt with in these regulations, about the
appeals process. The Local
Government Association—I remind the House, such
as it is, of my local government interests—points out that there
have been more than a million appeals from business rate properties
since 2010, and 200,000 of those appeals are still waiting to be
decided. This has led councils to hold back £2.5 billion in
reserves in case they have to meet their 50% share in respect of
refunds; 50% is payable by councils and 50% is payable by the
Government. The system is clearly creaking around what it is
capable of resolving in relation to the appeals system. I wonder
whether the Government will look at that system and at the funding
that is required to be put in place when there are
appeals...
(LD): My Lords,
I too am a vice-president of the Local Government Association...
(LD): My Lords,
I draw the attention of the House to my entry in the register of
interests as a councillor in the borough of Kirklees and as a
vice-president of the Local Government Association...
(Lab):
My Lords, in debating these regulations I refer noble Lords to my
entry on the register of interests. I declare that I am a local
councillor in the London borough of Lewisham and a vice-president
of the Local Government Association...
(Con):...A number of noble Lords mentioned
appeals. We are looking at changing the way in which appeals are
dealt with under 100% rates retention so that individual
authorities do not have to bear the risk of appeal losses. We are
currently discussing the mechanics of doing this with the LGA and
the sector with a view to removing some of the risks to their
income from these appeals. Perhaps I can write on the backlog
when I have the most up-to-date figures...
...The noble Baroness, Lady Pinnock, asked what
would happen if a local authority lost a substantial business
rate payer in its area. When I introduced these regulations I
mentioned that there was a safety net. There will continue to be
one under 100% rates retention. We are discussing the detail of a
new safety net with the LGA and the sector and will announce
detailed proposals later in the year. The noble Baroness also
made the valid point that not all local authorities will gain
from 100% business rates retention. That is indeed the case.
Redistribution and the timing between resets—in other words, how
frequently we assess or reassess the needs of an authority—will
be critical. Again, we are discussing the timing of this with the
LGA, but we have indicated that we might reset the needs more
frequently than under the 50% schemes. I hope that is of some
reassurance to the noble Baroness....
...An issue was raised that is raised in every debate
about local government about the Government putting more
responsibility on local authorities without giving them the
resources to discharge them. I remember making those points back
in the 1960s when I was a local councillor. As part of the move
towards 100% business rates retention we will give authorities
some £12.5 billion of additional resources from which to fund the
new responsibilities that they assume. To meet the perfectly
valid point raised by a number of noble Lords, we are discussing
the functions that will be devolved to local authorities with the
LGA and with the local government sector. The new scheme will
take account of imbalances through redistribution via tariffs and
top-ups, and of the frequency with which, as I said a moment ago,
we reassess the needs and reset the tariffs and the top-ups, in
response to a point made by the noble Lord, Lord Kennedy.
We have stressed the importance we place on the fair funding
review. We have been discussing the methodology of assessing
needs with the LGA and with the sector. Again, we hope to publish
further details in due course...
To read the whole debate, CLICK
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Extract from Commons
motion to approve the Draft Non-Domestic Rating (Rates
Retention) and (Levy and Safety Net) (Amendment) regulations
2017
The Parliamentary Under-Secretary of State for
Communities and Local Government (Mr Marcus Jones):...I
would like to respond to the hon. Gentleman’s comments. First, he
mentioned baseline funding, which is extremely important. We are
not resetting the baseline funding. It will be reset for 2019-20,
when 100% business rate retention comes into full effect. We are
currently working with the local government sector through a
working group, with which the Local Government Association is
involved, and undertaking a fair funding review that will feed
into setting that baseline. A number of other groups are
involved...
To read the whole debate, CLICK
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