Tell MAMA: Funding

Debate between Baroness Scott of Bybrook and Lord Khan of Burnley

Thursday 13th March 2025 Lords Chamber

[Lord Khan of Burnley (Lab)]

My Lords, my noble friend makes an excellent point. We remain steadfast in our dedication to delivering comprehensive monitoring of anti-Muslim hatred and providing support for victims of it. We are committed to providing a comprehensive service to monitor anti-Muslim hatred and provide support. We will soon be opening a call for grant applications for future work in this area. Further details will be provided in due course. Moving away from directly awarded grants to an open, competitive grant process will ensure greater transparency and value for money in our grant partnerships.

[Baroness Scott of Bybrook (Con)]

My Lords, I understand that the decisions on funding for third parties can often be very challenging. Obviously, the Minister cannot give us details of what is being discussed at the moment. I am very pleased to hear that discussions are still going on with Tell MAMA. What concerns me about the Government’s new way of working with third-party funding is that there could be a period of time when these services are not being provided, as you move from one provider to another. Tell MAMA measures and monitors anti-Muslim hate crime very well. I would want to know that the Government are still doing that, if there is a period of time with nobody there. More importantly, I would want to know that the support that Tell MAMA gives to the Muslim community and victims of hate crime is still there.

[Lord Khan of Burnley (Lab)]

My Lords, I can reassure the noble Baroness and the House that the service of monitoring and reporting of Islamophobia and anti-Muslim hatred will continue. I understand the point the noble Baroness made. Of course, I cannot predict the future of applications. The process is going to go live and open for a competitive bidding process to secure the best value for public money.

The world has changed since 7 October and the Southport disturbances. It is only right for us to have the opportunity to go out to the market and find the best value for money. But I can confirm that there will be a continuous service of reporting and monitoring of anti-Muslim hatred.

Holocaust Memorial Bill

Debate between Baroness Scott of Bybrook and Lord Khan of Burnley

Committee stage
Tuesday 11th March 2025 Grand Committee

[Baroness Scott of Bybrook (Con)]

I will make that ask of the Minister in our debate on a subsequent group; if he does not answer now, I will repeat it.

[The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government (Lord Khan of Burnley) (Lab)]

My Lords, this has been another passionate debate. I thank the noble Viscount, Lord Eccles, the right reverend Prelate the Bishop of St Albans and the noble Lord, Lord Blencathra, for their Amendments 5, 22 and 23. With this group of amendments, we are in essence considering the future of Victoria Tower Gardens as a place where all members of the public can enjoy free access to a green space in the very heart of Westminster.

From the beginning of the design process, the importance of maintaining access to Victoria Tower Gardens has been a high priority. The design that we are taking forward was selected from a long list of exciting and high-quality proposals partly because it showed a great deal of respect for the gardens, positioning the memorial at the southern end and leaving the great majority of open space to the public; I will not get into the debate on the size of the project because that will be discussed in our debate on the third group. Our proposals also include a high level of investment in the gardens themselves: we will improve the quality of the paths, the planting and the grass lawn; and we will provide new boardwalks, enabling better views of the Thames, with paths and seating made more easily accessible for all.

Amendment 22 in the name of the right reverend Prelate the Bishop of St Albans would impose a statutory limit on the number of closures of Victoria Tower Gardens for commemoration events related to the Holocaust. As I have said—I will say it again now—it has always been our intention that Victoria Tower Gardens should remain open to the public, with only a small area taken for the Holocaust memorial and learning centre when it is built. We are well aware of the value placed on the green open space by local residents, nearby office workers and visitors to Parliament, not to mention parliamentarians themselves; that is why the Bill ensures that the requirement to maintain Victoria Tower Gardens as a garden open to the public will remain.

Assurances were given to the Lords Select Committee on various points, including commitments relating to the management of Victoria Tower Gardens; these were mentioned by the right reverend Prelate. Ministers will continue to be held accountable for those public assurances by Parliament in the normal way.

Closures were discussed in some depth by the Lords Select Committee. The result was that the committee’s special report directed a recommendation to the Royal Parks—which manages the gardens on behalf of the Department for Digital, Culture, Media and Sport—to consider this matter going forward. A number of noble Lords, in particular the right reverend Prelate the Bishop of St Albans and the noble Baroness, Lady Deech, mentioned the closure of Victoria Tower Gardens for the Yom HaShoah event on Sunday 5 May. This was requested by the then Culture Secretary because the gardens’ location made them more accessible for frail Holocaust survivors than the usual venue in Hyde Park. Contrary to claims by petitioners at the hearing on 20 November, our understanding is that the partial closure was for one day only, with the playground remaining open until midday—not the three days that have been mentioned. No decisions have been taken on future closures of the entirety of Victoria Tower Gardens to facilitate Holocaust-related commemoration events once the Holocaust memorial and learning centre is built.

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[Baroness Scott of Bybrook (Con)]

My Lords, I thank my noble friend for explaining so well the reasoning behind why we should wait for the planning system. I was going to say something very similar, but now I do not need to because of the timing. However, it would be helpful if the Minister could take the opportunity to give this Committee more detail about the process and the legalities, and about the reasons why we are doing what we are in this Bill, and where it should not then have anything to do with the planning system. That is an important thing to do and I ask that we have it in writing, to clarify this well in time for Report.

I was going to say something about all the other amendments in this group, but I feel that they would be much better discussed within the planning system and not within this Bill.

I will mention something about tea rooms. Interestingly, when I came in today, I was very much in support of not having them, but, having listened to the evidence and thought about it, it is actually not a bad thing to have that in a park that is used by all sorts of people for all sorts of different reasons. I certainly will not be supporting that proposal any longer. As far as I am concerned, all the other amendments should be dealt with in the planning system, so it is not worth my taking up any more of the Committee’s time.

[Lord Khan of Burnley (Lab)]

My Lords, I thank the noble Lords, Lord Strathcarron and Lord Blencathra, the noble Baronesses, Lady Walmsley and Lady Finlay, and the right reverend Prelate the Bishop of St Albans for bringing these amendments. This group covers a set of topics relating to the potential impact of the proposed development. As we consider these topics, it is necessary to keep in mind the relationship between this Bill and the process for seeking planning consent.

The Bill does not include provisions to grant planning consent. I am quite sure that noble Lords would have criticised the Government forcefully if we had tried to bypass the normal route for seeking planning consent by including any such provisions in our Bill, a point alluded to by the noble Lord, Lord Pickles. The planning process, put in place by Parliament and regulated through the courts, is the proper process for considering a development such as the national Holocaust memorial and learning centre.

Let me be clear in addressing the points of the noble Lord, Lord Sassoon, in relation to the planning process, which a number of noble Lords, including the noble Baroness, Lady Scott of Bybrook, alluded to. We, as the applicant, stand by the current planning application. We do not intend to withdraw it. It is for the designated Minister to decide how to deal with the current application. We understand that he has three broad options: to invite written representations and then decide; to hold a further planning inquiry; or to hold a round-table discussion. All options would mean opportunities for opposing views to be considered. It is for the designated Minister to decide the approach.

The arrangements are perfectly proper. When they were challenged in the court in 2020, that challenge did not succeed. In all called-in applications, it is for the designated Minister to decide the mode of considering the application. We have given an assurance to the Lords Select Committee that we will make sure that Peers and MPs are notified when the process of retaking the planning decision starts. There will therefore be opportunities for people to make their views known. It will be up to the designated Minister to decide how to deal with those views, including whether to have a new inquiry.

The planning process requires extensive consultation, detailed scrutiny by technical experts and consideration of an extensive range of statutory provisions, regulations and planning policies. The process enables a balancing exercise to be conducted, in which the benefits and impacts of any proposal can be properly assessed. With the greatest respect to noble Lords, and acknowledging the deep expertise that can be found across the Committee, I submit that we should be extremely wary of interfering in these processes. We are not sitting here as a planning committee. I suspect that few of us here will have read all 6,000-plus pages of evidence submitted with the planning application, or the many detailed responses from experts, supporters and opponents of the programme. I hope that noble Lords will forgive me for setting this point out in detail. I will now turn to the amendments in question.

Amendment 7, from the noble Lord, Lord Strathcarron, relating to other memorials in Victoria Tower Gardens, would have the effect of tying the hands of the planning decision-maker and stopping the current proposal. The amendment would give protection to those memorials above and beyond the protections they already enjoy as listed buildings. We all want to ensure that the memorials and monuments in Victoria Tower Gardens, and their setting, are respected. Our design is sensitive to the heritage and existing uses of Victoria Tower Gardens. It includes enhancements to the gardens that will help all visitors, including better pathways and improved access to existing memorials.

The planning inspector considered a great deal of evidence from all sides and looked in great detail at the impact on the gardens and on existing memorials before concluding that any harms to heritage assets were outweighed by the public benefits of the scheme. As drafted, the proposed change to Clause 2 is not necessary to ensure that memorials are given proper weight in the planning process. It would, however, act as a barrier to proceeding with the proposed Holocaust memorial and learning centre. I therefore respectfully ask the noble Lord to withdraw Amendment 7.

Plan for Neighbourhoods

Debate between Baroness Scott of Bybrook and Lord Khan of Burnley

Monday 10th March 2025 Lords Chamber

[Lord Khan of Burnley (Lab)]

My Lords, the noble Baroness makes an interesting and good point about having diversity and inclusion from a cross-section of society. We will set out further guidance on this issue. I will say again that it is for local neighbourhood boards to come out with proposals that will benefit their area, and the best benefits are where everybody is included as part of the whole deliberation, discussion and finalisation of neighbourhood boards.

[Baroness Scott of Bybrook (Con)]

Can I get some clarification? Are the Government going to clarify in some guidance who should be on these boards, or will the composition of these boards be something that local councils decide? That is very important. I come back to the unions: in some areas of this country there may not be any union representatives who want to be on the board but there may be in others. Will that be something that the Government say has to happen, or will it be purely a local decision?

[Lord Khan of Burnley (Lab)]

My Lords, I said repeatedly in the Statement and say again that it is for the local neighbourhood boards of the 75 places to decide who is on their board, with the guidance of the local authority. Many of those 75 places have already created neighbourhood boards and regeneration plans and, again, it is for them to adapt those. We will be giving more framework guidance—in particular, clarification on the capacity funding.

My noble friend Lady Armstrong talked about the new deal for communities led by John Prescott. It has been clear from the evidence that on the year-zero plan, where local authorities can plan before the funding is distributed, in particular on paperwork and architectural designs for capital projects, there is a lot to learn from the evaluation of the new deal for communities. We are following that plan. We have been inspired by the new deal for communities and what it achieved for our country, and we will implement this plan for neighbourhoods to make sure we give more power back to regional and local areas in the 75 places. I reiterate that it is a local-led initiative—it is bottom-up, not top-down.

Non-Domestic Rating (Multipliers and Private Schools) Bill

Debate between Baroness Scott of Bybrook and Lord Khan of Burnley

Committee stage
Thursday 27th February 2025 Grand Committee

[Lord Khan of Burnley (Lab)]

My Lords, I say directly again that the 2026 revaluation has not yet been completed but, obviously, the Treasury is working on it. It is having conversations with all stakeholders, of course. In fact, it is probably also looking at forward planning on the whole future of business rates. As I said on our first day in Committee, this is the start of a huge strategic focus looking at business rates; this is the first part of it. I assure colleagues that, as soon as the multipliers are announced at the Budget, noble Lords will have an analysis—not an assessment, but an analysis.

[Baroness Scott of Bybrook (Con)]

My Lords, I thank the noble Lords, Lord Fox and Lord Thurlow, for their support on what I think is a really important part of the Bill. It is not about us knowing; it is about businesses knowing. We heard very strongly from the noble Lord, Lord Thurlow, about businesses, particularly those that are around the £500,000 and do not know now whether they are or are not, and the multipliers. They are trying to plan their businesses, hopefully for growth, if we hear what His Majesty’s Government want for them, but how can they do it when they do not know what the third-biggest chunk of their expenditure will be? We are trying to get the Minister to understand how very important that is to this sector.

I thank the Minister for his response but I still think, as can be heard from the questions, that we have a lot of concerns over the lack of clarity on this and, particularly, the full impact assessments. I am more than happy to work with the Minister and the Government to find a way around this, so that we can feel comfortable—not for us, as I have said, but so that businesses can fully assess the impact as soon as possible. For now, I beg leave to withdraw my amendment.

Non-Domestic Rating (Multipliers and Private Schools) Bill

Debate between Baroness Scott of Bybrook and Lord Khan of Burnley

Committee stage
Monday 24th February 2025 Grand Committee

[Baroness Scott of Bybrook (Con)]

I will continue. When my noble friend Lord Davies of Gower tabled a purpose clause on the Terrorism (Protection of Premises) Bill, the noble Baroness, Lady Suttie, argued that it was unnecessary because it restated some of the language in the Long Title of the Bill. In contrast to the amendment that we are debating today, my noble friend Lord Davies’s amendment included a legal duty on the Secretary of State, as well as establishing a purpose clause giving it legal effect. This is all water under the bridges, though, and we hope that our friends on the Benches to my left will not criticise our use of purpose clauses when scrutinising future Bills. As I say, we on these Benches are very comfortable with purpose clauses which seek to probe the intentions of the Bills that this Government are bringing forward, so I welcome the noble Lord’s amendment.

As the noble Lord, Lord Fox, says in his explanatory statement, there is a real question mark over the Bill’s impact on the Government’s plan to deliver on their stated aims of protecting our high streets and encouraging investment. Later in this Committee, I will seek to probe the impact of the Bill on larger anchor stores, which are often the key drivers of the footfall on our high streets and keep smaller businesses alive. I will also seek to understand more fully the impact that the Bill will have on the retail and major food shops, including supermarkets, which people across the UK rely on.

We know that the Government’s original intention was to hit international businesses that have large, warehouse-style business premises, such as Amazon and other international tech giants, but it is not clear that the Bill achieves that goal effectively. There is a risk that the increased costs of multipliers will be passed on to consumers in very unexpected ways. The higher multipliers that the Bill will introduce are a tax on business. We need to understand better what impacts this business tax will have on jobs, growth and prices. The impact assessment that the Government have published to date is utterly inadequate. Although I am really very grateful to the Minister for his engagement on the Bill so far, I feel that we will need to hear much more detail from the Dispatch Box on the real-world impact of the Bill if we are to proceed with it.

I turn to my stand-part notice, which seeks to question whether Clause 1 should stand part of the Bill. Clause 1 sets out the Government’s intention to create a system whereby hereditaments over the value of £500,000 pay at a higher multiplier. What they have failed to include in any part of the Bill, or indeed in the Explanatory Notes, is an explanation of why £500,000 was chosen as the threshold for the higher multiplier. Indeed, £500,000 seems entirely arbitrary, and the Government have not explained why that is the number.

As was mentioned by several noble Lords from across the House at Second Reading, the Bill raises more questions than it has answers, and there is a complete lack of clarity. Not only do we not know why the threshold is set at £500,000, but we also do not know what the actual multipliers will be. The Government’s choice of setting the threshold in this way means that many businesses on our high streets will be forced to pay this higher multiplier.

I agree that the business rates system needs reform, but I do not for a second think that this Bill achieves the reforms that our high streets need. There is an understanding across the board that businesses that operate online and occupy out-of-town warehouses should pay a larger amount of business rates, and such reforms have been nicknamed an “Amazon tax”. But the Bill does not achieve that on its own terms. We know that thousands of large shops will be caught by this threshold, and we cannot support a Bill that risks a decimation of our already struggling high streets across the country simply because the Government have failed to do their homework and have got their numbers wrong.

We will be probing the Government’s proposed threshold as the Bill progresses. It is the job of Ministers to get this right, and we will be listening carefully to the Government’s responses to this challenge. The Labour manifesto committed to reforming the business rates system and to

“level the playing field between the high street and the online giants”,

so why does the Bill not do that? The arbitrary threshold set by the Bill will damage many high-street businesses and, coupled with the reduction of retail, hospitality and leisure relief, will not fulfil the Government’s claims that they intend to reduce how much in business rates these businesses actually pay.

Again, the Explanatory Notes reference the higher multiplier as applying to

“distribution warehouses … used by online giants”,

but simply including a cut-off of £500,000, while it will tax online giants, will not protect other businesses. Although the majority of the businesses with a rateable value over £500,000 may be warehouses, not all of them are. Through a failure to target the policy effectively, the Bill is likely to have unintended consequences that will have a ripple effect on other businesses on our high streets.

It is important to look at this Bill in the context of the wider decisions that this Government have made that force businesses to have higher costs. The Government have increased the minimum wage, which we support, and they have increased the employer national insurance contributions—a hidden tax, a job tax, that will hit the retail sector with a bill of £2.3 billion a year. Although this Bill alone may not cripple businesses, when considered with the other taxes that the Government have imposed on businesses, it very well could be the thing that forces businesses to close on high streets up and down the country.

I thank the noble Lord, Lord Fox, who has provided a good contribution to this debate, and I hope that the Minister will consider the concerns that we have both raised.

[The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government (Lord Khan of Burnley) (Lab)]

My Lords, let me start by expressing my gratitude for the kind words from the noble Lord, Lord Fox, in relation to my not being present for the Second Reading because of the tragic loss of my mother, and I extend my gratitude to everyone in the House. I had a good look at the Second Reading, and I appreciate all the tributes that were made during this difficult time of my life.

It has been a lively start to this afternoon’s proceedings, but I thank the noble Lord, Lord Fox, and the noble Baroness, Lady Pinnock, for tabling Amendment 1. It will be appropriate alongside this amendment to consider whether Clause 1 should stand part of the Bill. I understand that there is concern that the Bill before us does not deliver on the Government’s stated intentions. I am grateful for the contributions of the noble Lord, Lord Fox, and the noble Baroness, Lady Scott, but I must disagree with their position.

The Bill delivers on the Government’s commitment, as announced at the Autumn Budget, to introduce from 2026-27 permanently lower tax rates for retail, hospitality and leisure properties and, as also announced at the Autumn Budget, the introduction of a higher tax rate on the most valuable properties—those with a rateable value of £500,000 and above—to fund that permanent tax cut sustainably. Clauses 1 to 4 of the Bill enable this.

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[Baroness Scott of Bybrook (Con)]

My Lords, I will speak to all the amendments in the name of the noble Lord, Lord Thurlow. I understand that he may be concerned by the lack of transparency surrounding the higher multipliers. We share this concern. We need to hear more detail from the Government. They are wrong to seek legislative powers to implement the higher multipliers without giving Parliament—and, more importantly, businesses—any clarity on what they are likely to be. We do not have an estimate of the revenue from the new multipliers. This is clearly not a satisfactory situation.

In principle, we are open to and understand the big concerns surrounding online giants, but more details are needed on this Bill, which we do not believe meets the policy aims. The principle of higher multipliers for certain ratepayers is a sensible idea when done well, so I cannot support the noble Lord’s Amendments 2 and 4. This Bill does not do it well with its arbitrary £500,000 threshold, but the principle of a higher multiplier for businesses that tend to pay less of other taxes can benefit small independent shops.

I cannot support the noble Lord’s Amendment 45—although I understand the sentiment—because, in the way the Bill is structured, high street businesses will be supporting other high street businesses through the higher multiplier. This is not sufficient reform. If we are to engage with the Bill on its own terms and seek to make it effective, the threshold will need changing the most. If the online giants were to pay a larger proportion of tax to enable a tax reduction for high street businesses, I would be inclined to support the Bill.

Before I finish, I thank both the noble Lord, Lord Thurlow, and the noble Earl, Lord Lytton, because, when you hear them talking, you will understand this sector of our economy. They understand what businesses know and think. The noble Lord, Lord Thurlow, is right to say that there should have been a much more in-depth consultation with all types of businesses, but it is difficult to do that when you do not know the effects on those businesses then or cannot give any indication whatever of that.

I also thank the noble Baroness, Lady Pinnock, because I have heard her stories of online giants in Yorkshire. I was pleased when I saw this coming, as perhaps the Government were going to deal with that issue for her. Sadly, I think they are dealing with part of it while, at the same time, putting our high streets in danger.

I am sorry that I disagree with the noble Lord that the Treasury should fund this reduction, but these are important points that the Government should consider carefully and answer fully. I hope the Minister will respond with much more clarity than so far.

[Lord Khan of Burnley (Lab)]

My Lords, I will address Amendments 2, 4 and 45 from the noble Lord, Lord Thurlow, which concern provisions relating to the new higher multiplier and the funding of the new lower multipliers.

At the Autumn Budget 2024, the Chancellor set out a Budget to fix the foundations—a Budget that took the difficult but necessary decisions on tax, spending and welfare to repair public finances, to increase investment in public services and the economy, to rebuild Britain and to unlock long-term growth. Part of that agenda included transformation of the non-domestic rating or business rates system, including delivering on the Government’s manifesto pledge to support the high street.

Support for the high street is an area on which I know that the noble Lord, Lord Thurlow, and others in this House have spoken passionately in prior debates on business rates legislation. I appreciate the depth of knowledge and experience that both he and the noble Earl, Lord Lytton, bring to these debates.

The Government have made clear that supporting the high streets is a priority. They are a focal point of economic activity and a point of local pride, and they can often reflect the unique character of a community. Yet, as they are property-intensive sectors, the Government are aware that they shoulder a significant business rates burden. Since the Covid-19 pandemic, a one-year relief has been repeatedly rolled over for retail, hospitality and leisure properties as a temporary stopgap. However, this has meant uncertainty for businesses about their business rates bills from one year to the next, and it has created a significant fiscal pressure for the Government.

The Bill will enable the Government to provide a permanent tax cut for qualifying retail, hospitality and leisure properties and, in doing so, better ensure the ongoing vibrancy of high streets up and down the country. However, against the challenging fiscal position that the Government inherited, we have been clear that we must take difficult choices to ensure that this support is delivered in a sustainable way. I repeat: the system should work in a sustainable way.

Specifically, this is why, at the Autumn Budget 2024, the Government announced our intention to introduce a higher tax rate on the most valuable properties. The amendments proposed by the noble Lord, Lord Thurlow, go to the heart of this element of the Bill. They serve to prevent the Government funding the support that the noble Lord would agree is critical for the high street from within the business rates system.

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[Baroness Scott of Bybrook (Con)]

Will the extra burdens on local authority budgets that might come be funded by the new burdens policy?

[Lord Khan of Burnley (Lab)]

Yes, that is right.

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[Lord Khan of Burnley (Lab)]

My Lords, in her contribution, the noble Baroness, Lady Scott, said that she hoped the Minister listens very carefully. Just to reassure her, I always listen very carefully and with great interest to everything that the noble Baroness says, as is the case for all noble Lords in this debate.

Six of these eight amendments seek to change the Bill to remove certain high street services from the higher multiplier. In the previous debates on the amendments in groups 4 and 5, I explained why the Government have taken a sector-agnostic approach to the higher multiplier and have not excluded any sector or type of property. The same considerations apply here and I will not repeat them.

As regard detail, it is worth being clear what type of retail properties on the current rating list would be caught in the higher multiplier. The Valuation Office Agency’s published data shows that, of the subsector of shops that are at or above the £500,000 threshold, 72% are supermarkets, large food stores or retail warehouses. That leaves only 900 other shops at or above £500,000 across England, and of these 630 are in London and the south-east. For most regions, the number of shops affected, excluding supermarkets, large food stores and retail warehouses is fewer than 50. These numbers are rounded to the nearest 10.

In particular, the noble Baroness, Lady Scott, mentioned petrol stations, and amendments would support petrol stations but, in reality, from the Valuation Office Agency’s data, the number of petrol stations above the higher multiplier threshold of £500,000 is fewer than five.

The danger with these carve-outs from the higher multiplier is that the benefit could, in part, flow to large businesses in thriving and valuable locations, reducing the ability for us to support smaller businesses and less valuable locations through the lower multiplier. We understand the importance of facilities such as post offices or banking hubs for local communities. The average post office has a rateable value of only £16,000, so we do not anticipate that the higher multiplier will apply to very many premises used by post offices, and post offices are eligible for the existing retail, hospitality and leisure relief.

We understand that Amendments 17 and 35 seek to add to the lower multiplier hereditaments that host banking hubs. In the debate we have just had on group 4, I explained why we feel it necessary to target the lower multiplier on RHL. These amendments could easily widen the lower multiplier to other settings and introduce a loophole to the Bill. I assure the Committee that the Government will continue to work closely with high street banks to ensure that communities and local businesses have access to the banking services they need. I hope the Committee is assured that the Government remain committed to banking hubs. With these facts and assurances, I hope that the noble Baroness, Lady Scott of Bybrook, will withdraw her amendment.

[Baroness Scott of Bybrook (Con)]

My Lords, I thank all noble Lords who have supported these amendments. This group has dealt with high street services, in particular, post offices and banking hubs. While it goes unnoticed, a post office remains an essential street service, as we heard from the noble Lord, Lord Thurlow. Its use extends well beyond a mail service, and for many, particularly those without internet access, it plays a critical role in ensuring that individuals can pay their bills, collect their pension or access other financial services that a bank would traditionally offer. Indeed, they are the backbone of many of our British high streets, notably those in rural areas. As we enter a digital age, physical banking services offered by bank branches are incredibly hard to come by. When branches close, the impact extends far beyond just customers. It impacts on the whole local economy, as we heard from the noble Lord, Lord Fox, and the noble Baroness, Lady Pinnock.

Many small retailers—farmers and other independent traders—continue to rely on cash transactions. When a bank closes, cash withdrawals become harder, credit becomes less accessible and many face greater financial insecurity. In fact, bank closures may be yet another a blow to small businesses, with the Federation of Small Businesses warning that they could result in reduced

“ability to manage cash flow and productivity”.

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[Lord Khan of Burnley (Lab)]

My Lords, these amendments seek to change the Bill to remove anchor stores from the higher multiplier. I apologise for being repetitive, but as I explained in the debates on the previous three groups of amendments, we have taken a sector-agnostic approach to the higher multiplier and not excluded any sector or type of property. This is the fairest option.

We have also ensured that the Valuation Office Agency has published data on those properties currently falling within the threshold for the higher multiplier. This shows that the impact on high street shops is very limited. I will not repeat those numbers at this time but encourage noble Lords to look at that information.

Alongside noble Lords, we of course appreciate the role anchor stores can play in the high street, but it should be acknowledged that anchor stores are often part of large retail chains that will also have a number of properties with a rateable value of below £500,000. Where retail properties’ rateable value is below £500,000, they will benefit from the lower tax rates for qualifying retail, hospitality and leisure from April 2026.

The amendment would also be difficult to operationalise and would require the Government to define the meaning of an anchor store. It would be very difficult to define these stores in the way that the noble Baroness is thinking. There are anchor stores in almost every out-of-town shopping centre and retail park, and what is an anchor store beyond a large shop?

While I understand the concerns of the noble Baroness, I do not think it follows that we should exempt anchor stores from the higher multiplier, nor do I think that this can easily be done without, in effect, removing all shops. Some very difficult decisions have been made, and we need to ensure that the system is long-standing and continues in a fair manner. I hope, therefore, that the noble Baroness, Lady Scott of Bybrook, will withdraw the amendment.

[Baroness Scott of Bybrook (Con)]

My Lords, I thank the noble Baroness, Lady Pinnock, the noble Lord, Lord Thurlow, and all others who have mentioned this issue throughout the afternoon. There is an important role for anchor stores. To the definition, with the greatest respect to the noble Lord, I suggest that they should ask communities and their residents what would be an anchor store in their local town centre and ask the sector to discuss that as well. As a former leader of a council for many years, and knowing many council leaders, as I do, I know that they know exactly what an anchor store at any one time would be for the size and type of the high street they are trying not only to protect but to keep being a high street for any length of time. Many leaders of councils across this country have spent many hours working with the sector to get exactly that in order to make sure that they have a good thriving and surviving high street for their local communities.

As we have said, we all agree that these stores play a crucial role in the vitality of high streets and town centres. We know that they drive footfall, support local businesses and contribute significantly to the economic and social fabric of our communities. That is why it is important that we find a definition and a way through this. Without them, many of our high streets will struggle to survive, let alone thrive. I have spoken to the sector, and these businesses will leave the high street and go out of town where it is cheaper. Not only that, but they may even go out of business and, as we are seeing, go permanently online. That will not help our high streets.

As I have said, the changes in the Bill could inadvertently harm these vital businesses and place an undue burden on them, pushing them out of our high streets. The Bill follows several other damaging decisions that businesses are having to fund. This one at the end of it could be the straw that breaks the camel’s back. Not only will it likely leave anchor stores paying higher business rates; they will also be paying increased staff costs, as we talked about earlier.

These decisions will have a cost, and if the Government continue to make them, we are worried that there will be no businesses left in the high street to tax. I urge the Minister to carefully consider the concerns raised by many noble Lords today. We just want a fair and equitable business rates system—

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[Lord Khan of Burnley (Lab)]

My Lords, Amendments 21, 40 and 44 concern the rateable value threshold above which the higher multiplier may apply. This is set in the Bill at no less than £500,000, as we have heard repeatedly in contributions by noble Lords. The Bill allows the Government to set a higher threshold through regulations if they wish, but the amendments would require this threshold to be increased annually in line with CPI.

Alongside the amendments, the noble Baroness, Lady Scott of Bybrook, has given notice of her intention to oppose Clause 3 standing part of the Bill. It would therefore be appropriate at this point if I set out why Clause 3 should stand part.

The noble Baroness, Lady Scott of Bybrook, raises a reasonable question as to whether, and if so how, the £500,000 threshold should change over time and other noble Lords have also raised this point. Of course, we would expect that, over time, the value of properties and therefore their rateable values will increase as the economy grows. As these rateable values grow, the current threshold in the Bill of £500,000 will, relatively speaking, be smaller and more properties may be drawn into that category. That is the issue that the noble Baroness is probing with these amendments.

However, I do not think these amendments are the answer to that issue. First, and perhaps most importantly, rateable values will not increase annually in line with inflation or with any other measure of property value or the economy. Rateable values are set every three years at revaluations, and between those revaluations will not change other than for matters such as physical changes to the property.

The Government have set out that our intention for the 2026 rating lists is for the threshold for the higher multiplier to be set at a £500,000 rateable value. The Government consider that this will best ensure that sufficient revenue is raised to provide for a meaningful level of support for retail, hospitality and leisure properties, and will do so in an objectively equitable way.

The 2026 rating list will last for three years, and those rateable values will not increase over that period, other than if, as I have said before, the property is expanded or improved, for example. By extension, the 2029 revaluation will be the next logical moment to consider whether the £500,000 threshold remains the appropriate minimum for the new higher multiplier.

In approaching these considerations, the Government will need to examine how rateable values have changed at the revaluation but also what support is to be provided to retail, hospitality and leisure properties and, consequently, how much revenue is needed to be raised from the higher multiplier.

I hope the noble Baroness will appreciate that there are several factors the Government will need to consider and balance, beyond just the changes in rateable value. More broadly, as the noble Baroness will be aware, the Government keep all taxes under review, including rates and thresholds. As such, I can assure the Committee that in relation to the proposed amendment, the Government will, as a matter of course, actively consider whether the £500,000 threshold in the relevant regulations should be amended at the 2029 revaluation, as they approach that revaluation.

The noble Lord, Lord Fox, asked whether MHCLG or the Treasury decided. It was the Government who decided. As much as I love darts, it definitely was not a dart-throwing exercise.

I will now expand further on Clause 3 so that, I hope, noble Lords can agree that it should stand part of the Bill. We have discussed several amendments in relation to Clause 3 today, so I shall try to keep my remarks to the point and not go over previously covered ground too much.

Clause 3 is concerned with how we will determine to which hereditaments those multipliers should apply. It is split into three main parts, concerning occupied hereditaments in Clause 3(2), unoccupied hereditaments in Clause 3(3), and hereditaments on the central rating list in Clause 3(4). Properties on the central list are typically utility networks spanning many local authority areas, such as the gas, electricity and water networks. Each of these parts of Clause 3 are essentially identical, so to save the Committee from repetition, I will explain the provisions on occupied hereditaments in Clause 3(2) only.

The most important part of Clause 3(2) is the small amendment made by Clause 3(2)(a) to existing powers in the Local Government Finance Act 1988. Under those existing powers, the Treasury already has the ability to determine in regulations which multiplier applies to which property. Those powers, in respect of occupied properties, are in paragraph 10(9) and 10(10) of Schedule 4ZA to the 1988 Act. Clause 3(2)(a) amends that part of the 1988 Act to extend those powers to cover also the new additional multipliers. This means that the Treasury will be able to determine by regulations which properties pay on which multiplier.

As with Clause 1, we have included in Clause 3 safeguards as to how the Treasury may use these powers. These limit the higher multipliers to hereditaments with a rateable value of £500,000 or more and limit the lower multipliers to only qualifying retail, hospitality and leisure hereditaments.

Finally on Clause 3, the existing powers for determining the application of the multiplier allow the Treasury to do that by reference to a list of factors found in paragraph 10(10) of Schedule 4ZA to the 1988 Act. This is a non-exhaustive list that includes factors such as its rateable value, location or use. Clause 3(2)(c) expressly gives the Treasury the scope also to determine the application of the multipliers by reference to the description which the Valuation Office Agency puts in the rating list.

I hope that this further information provides the reassurance and clarity needed for the noble Baroness to withdraw her amendment and agree that Clause 3 should stand part of the Bill.

[Baroness Scott of Bybrook (Con)]

My Lords, I thank the noble Lord for speaking in this debate. He actually brought today’s debate right back to the beginning: where did the £500,000 figure come from? If we could get that from the Minister, it would be very useful for our debates as we enter Report.

The answer to whether there will be any further uplifts, is, I understand, the revaluation, which is in three years, but three years could go on. I go back to the difficulty that this makes for businesses to plan when they know they are going to hit that cliff edge of £500,000 and that their business rates are going to go up considerably. I go back to the example of my noble friend Lord Jamieson, who gave the example of the health centre that wants to build an extension, which could possibly move it across; the health centre would need to think very seriously about doing that extension, and this will happen across all investment in different types of businesses, which I think is worrying.

This is something that we could resolve together by a relatively straightforward amendment to the Bill, and I hope that the Government will do the right thing in protecting these smaller businesses from being hit with higher business rates inappropriately in the future. But, at this point, I beg leave to withdraw my amendment.

Political Parties: Donations from Abroad

Debate between Baroness Scott of Bybrook and Lord Khan of Burnley

Wednesday 22nd January 2025 Lords Chamber

[Lord Khan of Burnley (Lab)]

My noble friend makes an excellent point. She is correct that overseas voters have the right to participate in UK parliamentary elections, and this includes the right to donate to parties or candidates they support. However, foreign money is not permitted, and it is a criminal offence to facilitate an impermissible donation. Those rules apply to voters abroad as well.

[Baroness Scott of Bybrook (Con)]

My Lords, a Question was asked on this matter on the 15 January 2025, answered by the noble Baroness, Lady Taylor of Stevenage. Can the Minister provide the House with more detail on His Majesty’s Government’s review of all matters relating to electoral donations? In particular, can he confirm that it will address the matter of public bodies disclosing information to political parties, and tell the House when we can expect the review to conclude?

[Lord Khan of Burnley (Lab)]

The noble Baroness mentioned a similar Question that was previously asked. When it comes to foreign influence, additional controls are being implemented through the foreign influence registration scheme, which will require those being directed by a foreign power to carry out, or arrange for others to carry out, political influence activities to register with the scheme. I will take her concern forward and ensure that, when we have our wider consultation and bring forward proposals, which are not yet finalised, we will look at this in legislation and policy.

Voter Identification (Amendment of List of Specified Documents) Regulations 2024

Debate between Baroness Scott of Bybrook and Lord Khan of Burnley

Thursday 28th November 2024 Grand Committee

[Baroness Scott of Bybrook (Con)]

My Lords, I thank the Minister for bringing these regulations before the Committee. As we have heard from my noble friends Lord Mott and Lord Hayward, the timeliness of these changes is welcome. My noble friend Lord Hayward is right: it would be preferable to have any other changes come to us all at one time. I would also like to hear the Minister’s views on the possible changes to the May 2025 elections.

To go back to the SI, we on these Benches welcome the inclusion of the Armed Forces veteran card for use as voter ID. This is a sensible policy that allows our veterans to use a well-respected form of ID to exercise their democratic rights. I note that these regulations also allow for the national entitlement card issued by local authorities in Scotland to be used as voter ID. I also noted all the relevant changes to the forms required and the small changes outlined by the Minister.

These Benches’ primary concern is that the integrity of the ballot box is maintained. I therefore again seek the Minister’s assurance that this integrity will be paramount in any future changes that the Government may make.

[Lord Khan of Burnley (Lab)]

I thank noble Lords for their valuable contributions to this debate. I will respond to some of the points raised.

I thank first the noble Lord, Lord Mott, for his support for these regulations. I will tackle the issue he raised about additional documents being added to the list, as he asked for more clarification. On the subject of accepted documents at polling stations, I recognise that there have been calls from the public and noble Lords to include various additional forms of documents since the original voter ID rules came into effect. The noble Lord, Lord Rennard, also touched on this. We are pleased to bring forward this legislation to include the veteran card on the list of accepted documents, as this has been frequently called for since the card was fully launched.

I understand that many people would like further forms of identification to be added to the list. As I mentioned, we are continuing to review the voter ID policy. If further changes to the list of accepted documents are found to be necessary or appropriate, we will bring forward proposals in due course. I look forward to discussing them with noble Lords at that time. I make that point in particular. I have had really healthy discussions with all noble Lords who have spoken and want to ensure that I continue to have that conversation with them.

Many noble Lords touched on the theme of increasing democratic participation, as did the noble Baroness on the Benches opposite. The Government are committed to encouraging democratic engagement among all electors, including young people. We will help to encourage the engagement of young people by legislating to give 16 and 17 year-olds the right to vote in all elections.

The Government are carefully assessing the postal voting process as part of our wider review of electoral conduct and the registration processes. We have begun work on this and will work closely with stakeholders from across the sector to gather their feedback, analysis and ideas. The Electoral Commission has published its final report on the general election. We will carefully consider its findings and recommendations. Once we have completed our review, we will bring forward firm proposals for changes and improvements to our electoral system. I look forward to discussing this with noble Lords in due course. On the point about when the review will end, we expect to have a report on it in spring 2025.

The noble Lord, Lord Hayward, raised a number of important issues on Electoral Commission reports and our report in particular. I thank the Electoral Commission for its ongoing research into the running of our elections, and for its feedback and advice on potential areas of improvement. The commission published its interim report on the 2024 general election in September, focusing on the impact of the voter ID policy. Officials are already considering its recommendations. Two weeks ago, the commission published its full report on that election. This draws on the full suite of evidence and data, including surveys of candidates, returning officers and polling station staff, and feedback from charities and civil society organisations.

We will be carefully reviewing the commission’s findings and recommendations from both reports, and providing a formal response to both reports in due course. We are very cognisant of the need to ensure that the foundations of our electoral system are robust and secure, which the noble Baroness, Lady Scott, asked about, as we introduce further reforms to the way in which elections are run.

We are undertaking a strategic review of electoral registration, conduct and funding processes, looking at the biggest challenges and the pain points in the current system. We are working in partnership with the elections sector to understand how we can address these challenges in a practical and pragmatic manner. I will provide noble Lords with an update on the Government’s overall strategic approach to elections and electoral registration, including the outcomes of this review, in due course.

[Baroness Scott of Bybrook (Con)]

Should I assume, since the Minister is saying that we will have nothing from the review until next spring, that there will be no further changes for the May 2025 elections?

[Lord Khan of Burnley (Lab)]

I am sorry for any miscommunication, but what we are saying is that we want to get everything ready for the May 2025 elections. The focus is on getting the review and I am sorry if I confused noble Lords on that point. It depends what comes out of the review: depending on what it tells us, we can act on that. That is our focus.

The noble Lord. Lord Hayward, talked about the IFF research and the point that the Minister in the Commons made on this. The Elections Act 2022 included a requirement for the Secretary of State to publish an evaluation of the implementation and impact of the voter ID policy on the first local and the first two UK general elections after the Act came into force. We have therefore contracted IFF Research, an independent research organisation, to conduct a comprehensive evaluation of the July 2024 general election—we would have waited much longer for an evaluation of two general elections. It is essential that we understand how the policy has operated in practice, what has gone well and where there are any areas for improvement in the future. We expect that report summarising the work on the voter ID policy in the spring of 2025.

Voter Registration and Participation

Debate between Baroness Scott of Bybrook and Lord Khan of Burnley

Thursday 14th November 2024 Lords Chamber

[Lord Khan of Burnley (Lab)]

I note my noble friend’s important points, but I assure him that the Government are committed to improving electoral registration and addressing low registration rates among various groups in society. We will examine different approaches and use the experience of other countries to inform our decisions.

[Baroness Scott of Bybrook (Con)]

My Lords, we welcome the inclusion of the Armed Forces veteran card for use as voter ID but note that there will be a further review. Can the Minister assure the House that the integrity of the ballot box will be maintained in any future changes that the Government make?

[Lord Khan of Burnley (Lab)]

I thank the noble Baroness for making the point about the addition of the Armed Forces veteran card to the list of accepted documents for voter ID. On her very direct question, yes—it is in our manifesto.

Anti-Muslim Prejudice and Hate Crime

Debate between Baroness Scott of Bybrook and Lord Khan of Burnley

Monday 9th September 2024 Lords Chamber

[Lord Khan of Burnley (Lab)]

I say in response to the noble Lord’s important points that all forms of racial and religious discrimination are completely unacceptable and have no place in our communities. This Government will explore a more integrated and cohesive approach to tackling it. We are committed to protecting the right of individuals to freely practise their religion and we will not tolerate religious hatred in any form towards any religion.

[Baroness Scott of Bybrook (Con)]

My Lords, the previous Government committed to spending over £117 million to protect mosques and Muslim schools and community centres in the UK from anti-Muslim hate attacks over the next four years. In the light of the unrest we saw this summer, what discussions has the Minister had with his ministerial colleagues to ensure that this money is being spent effectively to protect Muslim communities? In the light of the summer disruption, what further steps will the Government take to tackle anti-Muslim hate in the United Kingdom?

[Lord Khan of Burnley (Lab)]

My Lords, the noble Baroness makes an important point. On the latter question, the Home Office has announced a rapid response force—work which involves more security to help support mosques that are facing direct public and violent disorder against them. I have visited quite a few mosques and had discussions with communities. In relation to our £29.4 million pledge to support mosques, a lot of mosques are taking up these schemes. Their continuation is important, as it is to tackle any form of religious hatred we see, including anti-Semitism. Where there are high levels of religious hate crime, there is existing government funding to support institutions to protect themselves.

Social Disorder

Debate between Baroness Scott of Bybrook and Lord Khan of Burnley

Wednesday 4th September 2024 Lords Chamber

[Lord Khan of Burnley (Lab)]

Anyone who stokes this sort of violence, whether on the internet or in person, can face jail time. Riot, public nuisance and criminal damage all carry a sentence of up to 10 years in prison. Those who incite hate online must face the consequences. The Technology Secretary has had useful meetings with social media platforms to make clear their responsibility to continue to work to stop the spread of hateful misinformation and incitement online. Where they have already acted, they have the full backing and support of government officials. This is a really important point. The Government continue to work with social media platforms to proactively refer content for them to assess and take action, and to ensure that they are actively engaging with law enforcement on criminal intent.

[Baroness Scott of Bybrook (Con)]

My Lords, the scenes that we saw over the summer were shocking. The police and courts made an exemplary effort to respond to the situation, but the Government must now look at the root causes of this violence. What steps will the new Government take to improve social cohesion and tackle racism wherever it raises its ugly head?