Local Government Finance Act 1988 (Prescription of Non-Domestic Rating Multipliers) (England) Regulations 2023

Debate between Baroness Vere of Norbiton and Viscount Stansgate

Tuesday 23rd January 2024 Grand Committee

[Baroness Vere of Norbiton (Con)]

Once again, I am grateful to noble Lords for sharing their thoughts in this short debate.

As ever, the noble Lord, Lord Jones, rightly held the Executive to account. I always appreciate his questions. He asked how many small businesses there are. There are hundreds of thousands of them. I can tell the noble Lord that 90% of properties come under the small business multiplier, so only 10% pay at the standard rate; of course, that covers hundreds of thousands of properties, some of which may be used by a single business. We must recognise that the small business multiplier is really important because it covers most properties. As the noble Lord, Lord Shipley, pointed out, it was frozen at the Autumn Statement because we recognise and share his concerns about the impact of business rates on our high streets, which we want to keep as vibrant as possible.

The noble Lord, Lord Shipley, is right that this is a tax cut. Sadly, it is quite limited, but, nevertheless, we will take tax cuts wherever we can find them. As I mentioned in my opening remarks, it amounts to around £5 million and goes to charities. Charities get other reliefs as well, which is why the impact is probably smaller than one might otherwise think.

Monitoring and reviewing business rates is a really important area. The Valuation Office Agency is responsible for valuing non-domestic property for business rates purposes. As I mentioned, we have decided to reduce the revaluation period from five years to three years to make it a bit more flexible and agile. The agency is required by law to compile and maintain accurate rating lists for non-domestic properties in England; it must do this impartially and independently of central government. It follows international valuation standards and the RICS mandatory guidance on the appropriate method of valuation. Of course, the VOA remains happy to talk to ratepayers to ensure that it gets the number for the rateable value right.

It is also important to recognise that the VOA is undergoing a period of transformation. There are some opportunities to digitise business rates. There is also a positive opportunity to link business rates to the HMRC system, to make it much easier and so that there is better targeting and understanding of how the business rates system works with the tax data from businesses themselves. This reform programme is called the digitalisation of business rates, and it will be a major step forward in modernising the entire system.

The noble Lord, Lord Shipley, went on to ask what small businesses think of this and whether we have heard from them. I am pleased to be able to tell him that there was the 2023 business rates review consultation and the technical consultation. We heard from the Federation of Small Businesses and many other representative groups in those consultations; they provided us with valuable feedback on how we can make the business rates system more productive.

The noble Lord, Lord Jones, mentioned the issue of some in local government feeling the pinch at the moment. The provisional local government finance settlement for 2024-25 has made an additional increase of 6.5% in councils’ core spending power. A consultation with the sector closed on 15 January and we are considering the responses. The final settlement will be confirmed in early February. The Department for Levelling Up, Housing and Communities always stands ready to speak to any council that has concerns about its ability to manage its finances or faces pressures that it has not planned for. We are aware that a small number of local authorities have recently suffered financial distress because of issues specific to them. As I say, we are keen to work with local authorities to ensure that they continue to deliver services for the public.

The noble Lord, Lord Shipley, said that business rates are too high, although he gave credit to the Government, noting that we held the small business multiplier for 2024-25 in the Autumn Statement. That is a positive thing. There is an enormous number of reliefs available for different types of businesses— I was briefed on this—and it is worth making sure that businesses are aware of them. Noble Lords will be aware of the reliefs that we have been able to extend for hospitality, to ensure that our high streets remain vibrant places to go to and socialise. Indeed, there are plenty of others, such as the improvement relief. I think it is possibly quite complicated, but necessarily so, because it targets money to where we need it most.

The noble Lord, Lord Livermore, asked about unoccupied properties. Local authorities are responsible for administering business rates at a local level, and they would determine the occupation of the property. However, if there is any more information or guidance around that that I can provide him with, I will certainly write to him with an update on business rate evasion and avoidance.

Motion agreed.

[The Deputy Chairman of Committees (Viscount Stansgate) (Lab)]

It may be for the convenience of the Grand Committee that we adjourn now, as there is about to be a vote in the Chamber, and reconvene 10 minutes from the moment the Division Bells begin.

Trains: Wifi Provision for Passengers

Debate between Baroness Vere of Norbiton and Viscount Stansgate

Thursday 25th May 2023 Lords Chamber

[Baroness Vere of Norbiton (Con)]

I do not think I can necessarily disagree with the noble Baroness, but that is a very absolutist approach and there is some balance to be had here. She says that the Government are not willing to subsidise the railways; we already do. As I have said, £2.85 billion is going in for the services. As I mentioned earlier this week, £44.1 billion is going into control period 7—the highest ever—and that covers all the renewals, the maintenance and the Network Rail operations. That element of it is very significant. That is nearly £9 billion a year that the Government spend, and in addition a further £2.8 billion is spent on subsidising services.

[Viscount Stansgate (Lab)]

My Lords, the Minister says that no final decision has been taken, but is she trying to persuade the House that the Government no longer think, in the 21st century in which we live, that wifi should count as an essential service for those of us who use the railways?

[Baroness Vere of Norbiton (Con)]

The proof is in the pudding—between 10% and 20% of people on trains use the wifi. Most people nowadays use 4G and 5G networks.

Airports Slot Allocation (Alleviation of Usage Requirements) (No. 3) Regulations 2022

Debate between Baroness Vere of Norbiton and Viscount Stansgate

Wednesday 26th October 2022 Lords Chamber

[Baroness Vere of Norbiton (Con)]

I thank my noble friend for raising the issue of small aircraft. I know he has a great interest in the matter. I will have to write to him about whether it applies to private jets and other small aircraft. The instrument that we debated in Grand Committee very much covered the slots held by the large commercial airlines.

[Viscount Stansgate (Lab)]

My Lords, before the House agrees these regulations, will the Minister tell us whether the Government expect limits to be placed on the number of passengers able to use Heathrow over Christmas?

[Baroness Vere of Norbiton (Con)]

We are aware that the current passenger cap at Heathrow of 100,000 passengers will be removed very shortly—indeed, I think it is this weekend. I believe that no decision has been taken on the Christmas period. However, significant numbers of staff have been recruited by Heathrow, so on balance I expect that it will not return, but that would be an operational decision for Heathrow.

Motion agreed.

Industrial Action on the Railways

Debate between Baroness Vere of Norbiton and Viscount Stansgate

Monday 20th June 2022 Lords Chamber

[Baroness Vere of Norbiton (Con)]

I completely agree with the right reverend Prelate and noble Lords will have the opportunity to quiz the Government on the longer-term plan as we bring the legislation forward to put it into place. The right reverend Prelate may have seen the Williams-Shapps plan for rail: it sets out exactly what we want to do with the railways. We are hugely ambitious for our railways; we are investing in our railways; we are reopening abandoned routes all over the country; we are electrifying lines all over the country; we are opening high-tech networks such as the Elizabeth line; we have HS2 and Northern Powerhouse Rail; and we are creating thousands of jobs, particularly, for example, in train manufacturing. But, as I said, you have to build a modern railway on firm foundations, and we have to get to the stage where there are firm foundations on which to build that modern railway.

[Viscount Stansgate (Lab)]

My Lords, I thank the Minister for repeating the Statement, which I have to admit she did with relish, but when I listen to the tone and content, I find it hard to escape the conclusion that the Government are content, if not enthusiastic, for this industrial action to go ahead because they think it will bring them political advantage. I have only a few moments to ask a question, so I ask the Minister to explain to the House: what is the role of an engaged, ambitious Secretary of State in a dispute such as this? What more, in her view, could the Government do to bring about the solution to this dispute that we all hope to see?

[Baroness Vere of Norbiton (Con)]

The role of the Secretary of State is, of course, to support the sector in reaching an agreement.

Touring Hauliers: Arts Organisations

Debate between Baroness Vere of Norbiton and Viscount Stansgate

Wednesday 18th May 2022 Lords Chamber

[Baroness Vere of Norbiton (Con)]

It is a very complex picture. As I mentioned earlier, one in five has already set up with an EU base and a further 6% plan to do so. However, as I also mentioned, it is the case that many tours can already go ahead depending on how many different stops that particular event will have within the EU. If I can find any further details from the industry, I will certainly write to the noble Lord.

[Viscount Stansgate (Lab)]

My Lords, further to the Minister’s answer to the noble Lord, can she give any encouragement or hope to youth orchestras? It is not just professional orchestras that are finding it difficult to tour. Youth orchestras are vital for the experience gained by the young people—I admit that both my children spent years touring and playing all over Europe and had enormous experience with the Stoneleigh Youth Orchestra—but I fear that these in particular are falling completely by the wayside. Can the Minister offer any hope or encouragement for them?

[Baroness Vere of Norbiton (Con)]

I am not aware that there is a particular issue here for youth orchestras. Like any orchestra, if a youth orchestra does not have its own vehicles, it can of course contract with an appropriate haulier which is able to operate within the regime that is set up in the UK and in the EU. It will depend on the sort of tour that youth orchestras want to do and how many countries they will be visiting as to the rules and regulations and which licences will need to be held by the haulier with which they choose to contract.

Rail Infrastructure: North of England

Debate between Baroness Vere of Norbiton and Viscount Stansgate

Thursday 18th November 2021 Lords Chamber

[Baroness Vere of Norbiton (Con)]

My noble friend is not quite right to say that the Government are backing away from away from large-scale projects, as the IRP—when he is able to read it—will demonstrate to him. However, my noble friend is right that Network Rail has recently completed a study on the west Anglia main line and we are considering its findings. Network Rail is required to conduct similar studies for all parts of the network, and these provide helpful advice to government on potential investments for the future.

[Viscount Stansgate (Lab)]

Has the Minister seen the front-page banner headline in today’s Yorkshire Post? It says: “PM breaks his own rail pledge.” I want to ask a question about Leeds—and I gladly declare to the House what you might call a family connection. To be practical, can the Minister explain what impact today’s plans are going to have on a station such as Leeds where, as I understand it, HS2 would have had the effect of freeing up platforms for much-needed extra capacity? Without HS2, the existing platforms are going to have to cope with all existing and future demands.

[Baroness Vere of Norbiton (Con)]

My Lords, it is very difficult to have a sensible discussion on this topic on the basis of front pages of the media. It is impossible that the noble Viscount has been able have a look at the documents which, as we know are being published, possibly as we speak. However, I can assure him that we are well aware that Leeds is an incredibly important station. It is the fourth busiest in the country outside London. Passenger demand has increased by 30% over the last 10 years and the Government are committing to £100 million to look at the options for how to run HS2 services to Leeds, to build capacity and also to finally develop and deliver a mass transit system for Leeds.