Planning Laws: Basements
Debate between Lord Ahmad of Wimbledon and Baroness Hanham
Lord Ahmad of Wimbledon
I share the noble Baroness’s view of the important role of the HSE. Perhaps she is aware that this very week the HSE is carrying out an inspection of basement policies in two key boroughs: Kensington and Chelsea—which has already been mentioned—and Hammersmith and Fulham. The HSE has a very important role to fulfil in ensuring the safety of these developments.
Baroness Hanham (Con)
My Lords, in view of the terrible disturbances that such developments have caused to neighbours, is it not time for the Government to look at some statutory compensation scheme for people who live beside them? I declare an interest as somebody who has been sitting in the middle of developments on either side of me for the past eight months and been nearly driven mad. My daughter is about to have a basement dug up next to her. Very little effort is made to enable people who are affected by these developments to have any compensation or redress.
Lord Ahmad of Wimbledon
Of course I note with great care what my noble friend has said and will take it back. It is somewhat amusing that these schemes are sometimes referred to as “subterranean development”, which sounds like the sun is shining, but for some neighbours, as I fully acknowledge, that is certainly not the case.
Deregulation Bill
Debate between Lord Ahmad of Wimbledon and Baroness Hanham(9 years, 2 months ago)
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Baroness Hanham
I hesitate ever to come in on a point of principle but my noble friend Lady Gardner said that she wanted Amendments 47 and 48 to be grouped, and that is what we have done. Have we spoken to Amendment 47 separately? Is there any way in which we can get this settled? I have spoken to the group commencing with Amendment 48, not Amendment 47. I was waiting for the noble Lord, Lord McKenzie, to come in and speak to his amendments. It seems to me that my noble friends Lord Tope and Lord Lytton have also spoken to the group starting with Amendment 48. I am sure that there must be a quick way of getting this sorted so that we are all speaking to the group commencing with Amendment 48.
Lord Ahmad of Wimbledon
My noble friend makes a totally valid point and I apologise—there should have been some closure with regard to Amendment 47. Perhaps I may suggest that I respond specifically to the issues around Amendment 47 and then we can move on. I understand that the amendment, having been called, will need to be withdrawn. Therefore, if my noble friend Lady Gardner is minded to speak to Amendment 48, perhaps she can, first, withdraw Amendment 47, as that will be a useful way of moving on to the more substantive debate.
Lord Ahmad of Wimbledon
My Lords, first, I thank all noble Lords who have taken part in the debate, but make special mention of my noble friend Lady Gardner. I know that she had a fall yesterday and I am glad to see her in her rightful place today. We were concerned that on such an important issue we might not see my noble friend in her place. Much as some of the questions she has posed are challenging, I wish her well in any subsequent recovery. As we have seen again today, she has put forward some very compelling arguments in respect of her position.
I will also say from the outset that I of course understand that noble Lords are keen to ensure that any relaxation of legislation governing short-term letting in London is available only to residents, so that they can make their property available when they are away for a limited duration, not to allow non-residents to use property almost or exclusively for short-term letting. I confirm that this is exactly the aim of the Government’s proposals. We clarified our intentions for the reform of legislation on short-term letting of residential accommodation in London in a policy document that was shared with your Lordships, as my noble friend Lord Tope said, on 6 February. I am sure we can come up with varying definitions of “short” and what have you, but it is late in the day, so I will not dwell on that too long.
Section 25 of the Greater London Council (General Powers) Act 1973 provides that the use of residential premises for temporary sleeping accommodation for less than 90 consecutive nights is change of use, for which planning permission is required. London residents face a possible fine of up to £20,000 for each offence of failing to secure planning permission. There are currently, as I am sure noble Lords appreciate, thousands of London properties advertised on websites for use as short-term accommodation. However, each potentially is in breach of Section 25 as it stands.
In response to our Review of Property Conditions in the Private Rented Sector, the new policy document that I referred to sets out the Government’s approach to modernising the legislation so that residents can allow their homes to be used on a short-term basis without unnecessary bureaucracy. The Government have carefully considered the views put forward in responses, and I thank the noble Lord, Lord McKenzie, for acknowledging the time that I have certainly sought to take to respond to some of the concerns of noble Lords on this issue. In bringing forward our reforms, we will therefore seek to make provision for safeguards to protect London’s housing supply and residential amenity and provide the ability for local exemptions to be made which would exclude specified premises or areas from the changes.
The Government want to enable London residents to participate in the sharing economy and to enjoy the same freedom and flexibility as the rest of the country, without the disproportionate burden of requiring planning permission. This policy is aimed at helping residents, not at providing opportunities for change of use from residential to business premises. In order to address the issues raised and to respond to some of the concerns, the Government intend to restrict short-term letting of residential premises to a maximum of 90 days in the calendar year, so that properties cannot be used for short-term letting on a permanent basis throughout the year.
I also confirm that we intend to include the requirement that properties must be liable for council tax, to exclude business premises. I also assure my noble friend Lord Tope that the new flexibility can be withdrawn following a successful enforcement action and that, in exceptional circumstances, local authorities will be able to request that the Secretary of State agree to small localised exemptions from the new flexibility, where there is a strong case to do so. In response to the issue around regulations, I say to noble Lords that the Government intend to consider the matters I have just mentioned in deciding the most appropriate way to bring these measures forward into law.
For completeness, it is appropriate for me briefly to mention Amendment 47, which sought to restrict the ability to let residential property on a short-term basis, without planning permission, to those times that coincide with,
“a major national or international sporting or entertainment event”.
It would be extremely challenging to define such events in a way that would exclude many other sporting or entertainment events that occur in London on a weekly or even daily basis; for example, European or international football matches and major concerts at venues such as Wembley and the O2 arena. I am grateful to my noble friend for withdrawing that amendment.
I will respond to some of the questions that have been raised. My noble friend Lady Gardner raised some concerns about Parliamentary Answers. It has been confirmed to me that I provided Written Answers to her Questions. Perhaps they were not as complete as she expected but I have checked the records; those Answers were provided and referred to the policy document and the fact that this would be made available before Report, which I hope has indeed been done.
My noble friend Lord Tope raised the issue of not consulting, in particular with Westminster Council. I assure my noble friend that my officials have met with London Councils officials and representatives from a number of London boroughs, including Westminster.
My noble friend Lady Gardner raised the issue of tax liability. We expect people to pay tax where they are liable. The “Rent a Room” scheme to encourage people to take in lodgers provides a tax allowance on income received from renting out a room; it is a long-standing provision. My noble friend also talked about subletting in Camden. To confirm, a tenant will need to check with their landlord whether under the terms of their tenancy they can sublet. We do not seek to discriminate between people who own their property and tenants.
Amendments 48 and 49ZA would restrict the ability to let properties on a short-term basis, without planning permission, to no more than 30 days a year, as my noble friend Lady Hanham said. Amendment 48 would also prevent hosts being able to accept bookings from overnight guests at less than seven days’ notice, and would require them to notify the local authority of every single letting. It would allow local authorities to establish a fast-track notification process and introduce an administration fee. Amendment 49C would also require notice of short-term letting, and its intended duration, by the property owner.
We want to deregulate in order to provide the ability to let property on a short-term basis for 90 nights per year. This will provide residents with meaningful and proportionate freedom and flexibility in how they use their property. The Government believe that a limit of 30 nights is unduly restrictive. One of the major advantages of the internet is the ability to make transactions quickly and flexibly, and we want our reforms to facilitate this. A requirement for seven days’ notice would unreasonably limit the ability of hosts to offer accommodation to customers seeking to book at shorter notice.
Baroness Hanham
My Lords, for clarity, my amendment said 30 days. In speaking to it, I did not support the situation about the seven days’ notice, nor did I do anything other than say that we would want a short, light-touch registration, which could be up to as much as a year—very much supporting what the noble Lord said. It is important to get the nuances, which are slightly different, and I tried to make them clear but we were in a muddle about where we were.
Lord Ahmad of Wimbledon
The noble Baroness is always well placed to clear up muddles, as she has done so again. I fully accept that she spoke specifically to the issue of the 30 days.
Amendment 49, which would restrict the deregulation only to those properties which are the principal and permanent residence of the owner, and Amendment 49ZA, which would restrict the deregulation to the principal London residence of their owner, are unnecessary and overbearing. They would unreasonably prevent tenants carrying out short-term letting, which may be permitted within the terms of their lease. It would also prevent people short-term letting who may have another residence outside London, even though the London property would be viewed very much as their home.
Amendments 49A and 49B would remove the ability of the Secretary of State to direct that specified areas should be exempt from the changes. The Government want to be able to grant exemptions but only in exceptional circumstances and where a strong case has been made by the local authority. Otherwise, we want to be clear that our aim is to provide the same rights for all Londoners in all local authority areas.
The amendments would create different regulatory approaches across the capital, potentially resulting in differences between local authority areas. Residents would find that their near neighbours had either greater or lesser freedoms to short-term let their property, without any apparent justification.
Amendment 49C would remove the deregulation measures where a relevant enforcement process had taken place. It would also require the Secretary of State to make regulations for local exemptions where there were strong amenity grounds. I can assure noble Lords that we intend to provide that the new flexibility can be withdrawn following a successful enforcement action and that, in exceptional circumstances, local authorities will be able to request that the Secretary of State agree to small localised exemptions from the new flexibility where there is a strong case to do so.
Amendment 50 is also unnecessary in the Government’s view. It is already the case that anyone carrying out illegal short-term letting risks a planning enforcement fine of up to £20,000. It is already possible for local authorities to apply for costs in the event of unreasonable behaviour during an appeal against enforcement action.
I assure noble Lords that the Government’s intention is only to deregulate Section 25 to allow residents occasionally to let out their property on a short-term basis; for example, when they are away on holiday. We are not seeking to create new opportunities for short-term letting on a permanent basis. Our policy document shows how we intend to achieve this in a way which balances the reasonable aspirations of residents to let out their homes temporarily with safeguards to prevent abuse of our reforms.
For these reasons, it is the Government’s belief that Clause 33 should remain part of the Bill. I fully acknowledge that differing views have been expressed by noble Lords, but I think that it is the shared intention of the Government and your Lordships to allow letting of property for residents but not on a commercial basis. I hope that some reassurance has been provided by what I have said and I urge noble Lords not to press their amendments.
Deregulation Bill
Debate between Lord Ahmad of Wimbledon and Baroness Hanham(9 years, 6 months ago)
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Baroness Hanham (Con)
My Lords, I apologise to the Committee that I have not had the opportunity so far to take part on the Bill. I do so now as a very new co-president of London Councils and as a freeman of the Royal Borough of Kensington and Chelsea, of which I am a former leader.
I want to intervene on this issue because I am long enough in the tooth, as my noble friend is, to remember the 1973 Act being introduced. It was introduced then because there was an experience of a transient population developing within London along with scarce housing. They were coming in for a short time, going away again and not contributing at all to the settled population. I wish that that situation had changed but in fact it has not. Central London is still the magnet for people coming here for a short time. Why do we worry about that? I think that it is because it destabilises the population and the use of accommodation. It makes it almost impossible for a local authority to know what its property, or the property within the borough, is being used for.
The noble Lord, Lord Mawson, spoke about having proper regulation, but there is proper regulation. What is happening in the Bill takes that proper regulation away. It seems absolutely essential that the local authority should have the oversight of what is going on. An application has to be made to it for practically everything else to do with property, so it should be able to see what is going on and to approve, or not, the short-term use. Perhaps I may go back to the suggestion that this is stopping people letting out their homes for a short time. Nobody is looking at that. What they are looking at is somebody who owns a property and then deliberately turns it into not a buy-for-let but a buy-for-rent for six weeks or so.
In my own area, you often see people coming into quite expensive accommodation. They put their suitcases behind them and go in, and you have no idea who they are. They vanish again a week later and somebody else turns up. That is not at all helpful for stability and it certainly does not help us with the transient nature of the situation. Central London boroughs may suffer from that more than others: Westminster, Kensington and Chelsea, and probably Camden.
Secondly, there has been an enormous amount of new development in London which is not necessarily of any use to local residents. It will be made of less use to local residents if some of those really big glass buildings, even at the rents that are charged, are let out on a short-term basis. The coming and going there will be absolutely uncontrollable.
I do not know what mischief has brought this clause about. I very much hope that my noble friend Lord Ahmad will be able to tell us, because the legislation seems to have been running along quite happily, doing what it is meant to do, for more than 30 years. Why suddenly, at this moment when London is in turmoil, a perpetual fever, of people, including tourists, coming and going—apart from the fact that this is an opportune Bill to put it in—is it important?
My borough, the Royal Borough of Kensington and Chelsea, is very alarmed about this. It has made its position clear. One of the reasons why I support the opposition to the clause, as well as the amendments, is that it will be badly affected. Other boroughs may not be as badly affected, but if this is a matter where each borough will make up its mind about deregulation, that is its choice, its power and its local decision if its local residents support it. I do not think that there is a role here for the Secretary of State in making a decision that affects a local authority area that much.
It is London that is affected by the Bill. London was deliberately affected by the London Government Act because of the situation then. I doubt that any other city has the pressure that London has now—although that may develop. I very much hope that the clause will be reconsidered, because I think it is unnecessary. London has spoken before about this. People who want to let their houses when they go away must be exempted. As it stands, I am very much against the clause.
The Parliamentary Under-Secretary of State, Department for Communities and Local Government (Lord Ahmad of Wimbledon) (Con)
My Lords, first, I thank all noble Lords for their contributions to the debate. Many noble Lords have spoken from their personal experience in London and as representatives of various London councils.
Perhaps at the outset I may say that I am not an adopted Londoner; I am a born and bred Londoner and someone who has represented a London council and sat on the London Councils body itself, so I am aware of some of the key concerns that have been raised about the provisions. However, I cannot claim to have made a coherent contribution to the 1973 Act. I hope that my contributions today will be somewhat more coherent, but that is for others to judge.
The amendments, which would allow local authorities to make their own exemptions for particular properties and areas, would, in the Government’s view, risk removing the certainty and consistency that are behind our proposals for all London residents. Indeed, they would create a patchwork of different regulatory approaches across the capital, potentially resulting in unjustifiable differences between local authority areas. Residents may find that their near neighbours have either greater or lesser freedoms to let their property short term, which in many cases would be difficult for them to understand.
Let me be absolutely clear: we intend to retain the important safeguards of Section 25, which protect London’s housing supply for Londoners who live and work permanently in the capital city. However, through Clause 34, we want to provide certainty for all residents in all London local authority areas that they are able to let their homes on a short-term, temporary basis, such as when they are on holiday, without having to deal with the unnecessary bureaucracy of applying for planning permission.
These amendments also seek to exempt from deregulation properties that are not the main residence of the landlord. I reiterate that, through Clause 34, the Government only want to allow residents to be able to temporarily let their homes. This measure will do nothing to make it easier for those seeking to short-term let property on a permanent or commercial basis. Rather than specifying how the deregulation will work on the face of the Bill, the clause seeks the power to make regulations which will provide the legal framework. These will follow the affirmative procedure and will be subject to debate and the approval of Parliament on important issues, including in precisely what circumstances short-term letting will not require planning permission.
I turn to the detail of Clause 34. The clause updates an outdated 40 year-old law restricting Londoners from being able to temporarily let out their homes or spare rooms. Section 25 of the Greater London Council (General Powers) Act 1973 prohibits the use of a,
“building, or any part of a building”,
for “temporary sleeping accommodation” for fewer than 90 consecutive nights without planning permission for temporary change of use. In London, residents failing to secure planning permission face a fine of up to £20,000 for each offence. The regulations that the Government are bringing forward will clarify for London residents what is permissible.
Baroness Hanham
I clearly heard the Minister say that this provision is intended specifically to allow people to let out their homes. Under those circumstances, I wonder whether the current wording of the legislation, which refers to,
“accommodation of any residential premises”,
describes that particular position.
Lord Ahmad of Wimbledon
As a previous Whip to the noble Baroness, I know that when she asks questions one needs to be quite detailed in one’s response. Let me again assure the noble Baroness that I will write to her specifically on that element. I am sure officials have also made note of her quite specific question. My noble friend Lady Hanham also raised the issue of curtailing the role, or asking why the Secretary of State would retain this role. As I have already said, we will work with local authorities in London on how regulations covering the role of the Secretary of State would work.
I am just looking through the number of specific fines from local authorities. Again, I have touched on some of them. I do not have the detailed breakdown of how many people have been pursued by which authority, but I have requested that from officials and will write to all noble Lords in that respect. I trust that I have covered most if not all of the questions. For anything pending I shall, of course, review the contributions made by all noble Lords, which I welcome, not least because of the experience across the board. I reiterate that the Government recognise that this is an area where there will be considerable interest and we wish to ensure that we get the change right. Therefore, I welcome the contributions that have been made in Committee today.
I reassure noble Lords that the Government will be working closely with all interested parties in London, including the local authorities and the hospitality industry. The Government want to ensure that the measures brought forward meet householders’ aspirations of temporarily letting out their homes or spare rooms, while retaining the key purpose of Section 25 which is keeping London homes for those who live permanently in London. We believe that these reforms benefit those Londoners who wish to supplement their income by making their homes or spare rooms available. It offers an alternative to hotels and guesthouses—as the noble Lord, Lord Mawson, mentioned—and further supports the wider tourist industry. It also helps those temporarily working in the capital or searching for a place to live by expanding the pool of competitively priced accommodation on offer. I beg to move that Clause 34 stands part of the Bill and I urge the noble Lord, Lord McKenzie, to withdraw his amendment.
Localism Act 2011
Debate between Lord Ahmad of Wimbledon and Baroness Hanham
Baroness Hanham
To ask Her Majesty’s Government what steps they are taking to ensure that local people are aware of, and are using, the new community rights created under the Localism Act 2011.
The Parliamentary Under-Secretary of State, Department for Communities and Local Government (Lord Ahmad of Wimbledon)
My Lords, I thank my noble friend for her Question. We have put over 2,000 uses of community rights into place. We have put in place a £50 million support programme, which includes a helpline, online tools and resources, and specialist support and grants. We also continue to promote take-up of the rights through local, national and consumer press, the broadcast media, ministerial visits and conferences and are working with people such as CAMRA and Supporters Direct.
Baroness Hanham (Con)
My Lords, I thank the Minister for that reply. He will recall that there are a number of community rights within the Localism Act. May I refer particularly to community assets and the acquisition of those and ask my noble friend what progress is being made and whether he has any examples of good practice that could be passed on to others?
Lord Ahmad of Wimbledon
First, I pay tribute to my noble friend for her sterling work in negotiating the Localism Bill through your Lordships’ House. With her experience, she is well placed to talk about community rights. I can inform my noble friend that there are now 900 neighbourhood planning areas in place. Twenty-eight referenda were held; all voted yes. Some 1,200 community assets have now been listed for community bids, including football grounds, pubs, allotments, piers and village halls. Eight assets have now been bought and the Government have allocated a further £25 million to the community shares issue.
Growth and Infrastructure Bill
Debate between Lord Ahmad of Wimbledon and Baroness Hanham
Lord Ahmad of Wimbledon
I remind noble Lords that we are on Report and there are specific rules which should be borne in mind.
Baroness Hanham
My Lords, I thank my noble friend for that. The consultation will be available within the next few months, probably by May, as will the response and the secondary legislation.
I rely, in my response, on the ability for local authorities to use Article 4 directions. It is perfectly reasonable for them to do so, but it is also reasonable for people who own houses to wish to extend them and to do so without having to go through the procedures of planning applications when the extension is relatively modest. I hope noble Lords will feel able—
Lord Hunt of Chesterton
Is there some limit to the height? In many gardens, the most important things are wind and lighting and you can occlude the sun in your neighbour’s garden. We are hearing an extraordinary speech. A neighbourhood is a set of houses, built and designed in a way that we all understood when we bought those houses. If one person wants to push out, all the other people will push out and it will have an extraordinary effect on neighbourhoods. This will be a social revolution. What survey did the Government do of people around the country? Did they just listen to some bureaucratic process? Have there been social surveys across the country? I do not believe there have been. This is a change to the whole British way of life. I have been a councillor and I have seen these effects.
Lord Ahmad of Wimbledon
My Lords, I have to remind noble Lords that we are on Report, not in Committee. As your Lordships know, we are a self-governing Chamber. As the Companion states, there are specific criteria we need to observe and we owe the Minister that level of respect in allowing her to finish her response. If noble Lords wish to push this to the vote, that is a matter for them. At this time, we are on Report and I would ask noble Lords to respect that.
Baroness Hanham
The answer to the question about the extent is that it is limited to a single storey and within the curtilage of the building.
I have reminded the House that a consultation has taken place and that we will see the results before secondary legislation, that there is the question of Article 4 directions being used and that it is, and should be, the right of citizens to extend their houses if they wish.
Non-Domestic Rating (Rates Retention) Regulations 2013
Debate between Lord Ahmad of Wimbledon and Baroness Hanham(11 years, 2 months ago)
Grand CommitteeRead Full debate Read Hansard Text
Lord Ahmad of Wimbledon
That the Grand Committee do report to the House that it has considered the Non-Domestic Rating (Rates Retention) Regulations 2013.
Relevant documents: 15th Report from the Joint Committee on Statutory Instruments
Lord Ahmad of Wimbledon
My Lords, the regulations we are debating today are one of the last remaining building blocks needed to implement the rates retention scheme on 1 April this year. We will also cover the Local Government Finance Act 2012 (Consequential Amendments) Order 2013.
Only a little over two years ago, this Government announced that they wished to end the current system of business rates being centralised. That is an ambition that those of us who have worked in local government have heard many times over the years but, up to now, with no expectation of it being achieved. With the passing of these regulations and others which will follow shortly, we will start to deliver this particular government intention and policy. It has been widely recognised in both local government and business that the current rating system does not provide an incentive for local authorities to support growth. Currently, when a new business or development moves into an area and generates extra business rates, that is passed on in full to central government—never mind the fact that the local authority may have to meet new costs associated with it. That is a system that has been widely criticised and will end on 1 April; from then, under the new business rates retention system, local authorities will retain 50% of their local business rates income. If local government uses its expertise and local knowledge to create a strong economic environment and encourage development and new businesses into its area, it will be able to share in the resulting growth in business rates.
In this House, we have had many opportunities to consider the new rates retention scheme, particularly through the Local Government Finance Act 2012. That scrutiny allowed us to make a number of amendments to the Bill to improve the operation of the rates retention system. In particular, on 10 October last year, we brought forward a group of amendments to allow local government to use a “collection fund” approach to rates retention. This is a system that has been requested by local government. It is a system with which it is familiar and that all people who have served in local government know is used for council tax. The regulations we are considering today implement that system.
Throughout the development of the rates retention system, we have ensured that local government has been fully consulted on the principles behind the scheme and, importantly, its practical implementation. These regulations were developed in partnership with experts in local government and were published in draft for consultation last October. This proved to be a valuable exercise and we are confident that as a result the system will be workable. The rates retention regulations implement the collection fund system. They will also ensure that local authorities are fully funded for qualifying rate relief awarded in enterprise zones.
I turn first to the operation of the collection fund system. It provides stability for local government budgets. This is because, under these regulations, an estimate made by billing authorities of the coming year’s rating income is used to fix the shares paid to major precepting authorities and to be retained by the billing authority for its own budget. These amounts do not change in the year, even if the amount of rates collected changes. Thereby, authorities can plan with certainty for the coming year.
Of course, the estimate for the year is unlikely to be perfect and we can expect the actual amounts collected from ratepayers to be different. Under the collection fund system, that will generate either a surplus or a deficit. Again to provide financial stability that surplus or deficit will be rolled forward into the calculations for future years. This avoids sudden changes in a local authority’s budget.
The rates retention regulations also provide that the central share will be paid to central government in 10 monthly instalments, in line with the instalments of rates income paid by ratepayers to local government. The same instalment schedule will be used for other payments to and from central government in the rates retention system. The regulations also offer that schedule for use between billing authorities and precepting authorities, but we have ensured that, if they wish, they can agree different arrangements.
I turn to the funding of relief in enterprise zones. The regulations ensure that local authorities are fully funded for qualifying rate relief in enterprise zones, which will provide an important boost to economic growth across the country. The Government have promised that ratepayers moving into an enterprise zone before 1 April 2015 can receive up to five years of rate relief, up to the state aid de minimis limit. However, under the rates retention scheme, local authorities would normally have to share in the cost of that relief. We have agreed that central government should fund enterprise zone relief in full. Therefore, these regulations allow local authorities to deduct from the share of rates income they pay to central government their share of the cost of relief in enterprise zones. As a result, local authorities will be no worse off financially from central government’s policy of awarding rate relief in enterprise zones.
I turn briefly to the Local Government Finance Act 2012 (Consequential Amendments) Order 2013. These are technical amendments that, for want of a better term, tidy up the draft regulations. They make a number of technical and consequential changes to other legislation, where it refers to the current system of redistributed non-domestic rates. The draft order replaces those soon-to-be-obsolete terms with references to the new rates retention system and locally retained non-domestic rates. The order also makes technical changes to the way that authorities must calculate their council tax requirements to ensure that these calculations correctly reflect the rates retention scheme.
In conclusion, these regulations will provide local authorities with in-year stability of income from the rates retention scheme through the collection fund system, and will ensure that local authorities are fully compensated for the cost of qualifying rate relief in enterprise zones. They have been discussed in detail with local government and utilise systems that we know work well for council tax.