Non-Domestic Rating (Designated Area) Regulations 2021 Debate
Full Debate: Read Full DebateLord McCrea of Magherafelt and Cookstown
Main Page: Lord McCrea of Magherafelt and Cookstown (Democratic Unionist Party - Life peer)Department Debates - View all Lord McCrea of Magherafelt and Cookstown's debates with the Ministry of Housing, Communities and Local Government
(3 years, 6 months ago)
Lords ChamberMy Lords, I thank the Minister for his introductory remarks in presenting the statutory instrument.
These regulations form part of a scheme to allow local government to retain a share of non-domestic rates, to be shared between central and local government, with 50% each. As a former local councillor for 37 years, I know how important rates are in providing local services. The Government previously identified a number of geographical areas designed to help job creation and encourage growth. I appreciate that this system applies only to England and Wales, but the 50:50 split of rates income between central and local government is generally mirrored in Northern Ireland.
I acknowledge that these regulations do not extend to the Province, but I share their overriding aim to provide flexibility and support for local councils, enabling them to promote economic development via the rates system. Belonging to a pro-business party, my colleagues have previously outlined our support for devolving to local councillors the powers and ability to lower business rates in their council areas by up to 3%. We also want to enhance the small business rate relief scheme and maintain industrial derating.
Ultimately, these regulations promote and encourage a rates-based growth strategy in designated areas of local government. This is certainly something on which I want to see a greater emphasis in Northern Ireland, and my colleagues in the Executive are seeking to take this forward. New developments and new businesses can boost the income of local councils and generate growth. Therefore, the business rates base should be a key driver.
The recovery from Covid-19 must have at its core an emphasis on skills and productivity, backed by infrastructure investment. A business rates system which is fit for purpose and allows the economy to grow and evolve is therefore essential. Higher rates bills are not only a barrier to business creation and growth, but a harmful impediment to existing firms. Rates reforms can remove these obstacles to growth and place the future of businesses that are under threat from the chaos of the pandemic on a more stable footing.
I am also mindful that the charitable relief from non-domestic rating has been a vital lifeline for faith-based organisations and for the community and voluntary sector. Any strategy for spearheading the recovery from the ravages of Covid-19 must not neglect these groups, as their operation has already been severely disrupted.
In conclusion, I agree with those who have emphasised the necessity of a specific plan to revive our town centres and high streets. I trust that the Government will give us a positive lead on that.