Non-Domestic Rating (Public Lavatories) Bill [HL]

Lord Hope of Craighead Excerpts

2nd reading (Hansard): House of Lords
Wednesday 10th July 2019 Lords Chamber

[Lord Hope of Craighead (CB)]

My Lords, I am sure that the House is very grateful to the Minister for the helpful and encouraging way in which he introduced this debate. I am particularly grateful to him for reminding us about the public convenience which lies in the underpass at the southern end of Whitehall. It is of interest to lawyers, some of whom engage in legal tourism, discovering places that are mentioned in celebrated cases and spending their holidays going from one to the other. The Westminster convenience is very easy for those who study at London universities to reach, unlike some places much further afield.

The point that interests me, and which led me to contribute to this debate, relates to my past. I once practised in the valuation for rating field and was the editor of a textbook on the subject. The fact that interests me is that public lavatories appear in the valuation list at all—but, on reflection, there is no doubt that they should be on the list and that they are chargeable to non-domestic rates.

This is the result of two basic rules: first, that every hereditament or structure that is capable of separate occupation should be entered in the valuation list; and, secondly, that the annual value attached to it for rating purposes is in theory the rent that the hereditament might reasonably be expected to let for from year to year, assuming that the tenant undertakes to pay all the rates and bear the cost of repairs and other expenses necessary to maintain the structure in a state that commands that rent. Nowadays, in practice, that figure is determined by a formula which probably does not bear much relationship to actual rents—but it is the formula that determines the rates that are chargeable for the hereditament.

As the Minister mentioned, not all lavatories that are available for public use are in separate occupation. Those found in railway stations and airports, for example, and those in other publicly funded buildings, are part of a larger hereditament. The problem is that it is the larger hereditament which forms the entry in the list and is valued, with each part of it contributing to the total annual value. As I understand it, we are concerned with the relatively simple position of self-standing hereditaments, but I recognise the point that the noble Baroness raised about lavatories and changing facilities in larger buildings. That would require separate treatment and is not as easy to deal with as what is being dealt with in this case. That is not to say that it is not a very important point—but how one deals with it is a bigger problem.

We are concerned with the self-standing public lavatories that one might hope to find in a town centre, in a public park or in or near a children’s playground. I have to confess that I never encountered one in my valuation practice and they are not mentioned in my textbook—perhaps they should have been. Nor can I remember when I last visited one. However, I have no doubt that they exist and they certainly are rateable.

As the noble Baroness forcefully explained, there is a very real problem, because they are increasingly difficult to find. This is not just a matter of convenience but a health issue, particularly for people with special lavatory requirements or other health problems which mean that they simply cannot risk going to places where one might hope to find them if they know that there is no public convenience there within easy reach. So something needs to be done. Removing the burden of rates is undoubtedly one way of addressing the issue, as the cost of maintaining these premises is not immaterial. Therefore, like the noble Baroness, I entirely support the principle behind the Bill.

Exempting the subjects from rates altogether by this mandatory relief is quite a big step. I am reminded of a similar decision, taken during the depression of the 1920s, to introduce, under the Rating and Valuation (Apportionment) Act 1928, a system of rating relief to encourage investment in industrial and freight transport hereditaments. The relevant legislation provided that the annual value of these subjects was to be determined by dividing by two the figure on which the rates would be levyable if the Act had not been passed. That measure was designed to encourage people to invest in factories and workshops, and no doubt also to discourage them from closing them down, in order to increase opportunities for employment at a time of acute difficulty and depression.

It was a sensible system, but it lasted beyond its useful time and was abolished in the 1960s. Since then, I have sometimes wondered whether a system of de-rating might be introduced to help the occupiers of premises suffering from depression in hard times. In a way, what we are dealing with today is a very good example of that. Here we have subjects that are clearly suffering from the economic problems of keeping them open. The closures which the noble Baroness referred to are dramatic and disturbing. It is a subject which requires similar treatment. Here, the relief is even more generous than that given in 1928. It is not just 50% off but 100% off, which is most welcome.

My only concern is whether giving this mandatory relief will achieve the desired result. I hope it is not just a matter of closing the stable door. Of course, there is no way of knowing what the effect of the Bill will be until it is enacted, but it will certainly help. I hope that it will go as far as the noble Baroness and the Minister indicated. I agree that this Bill should receive a Second Reading, and I hope that it will pass into law as soon as possible.