Levelling-up and Regeneration Bill

Debate between Lord Stunell and Baroness Bloomfield of Hinton Waldrist

Committee stage
Wednesday 22nd March 2023 Lords Chamber

[Baroness Bloomfield of Hinton Waldrist]

I will be coming to that in a moment.

Finally, I turn to Amendments 445, 445A, 445B and 447, tabled by the noble Lord, Lord Foster of Bath. These amendments concern the detail of how the registration scheme will operate, particularly in relation to data sharing and the safety of properties. These issues will indeed be explored in the consultation, and a registration scheme will be designed to ensure that all providers of short-term lets are aware of their legal responsibilities to ensure health and safety in their properties. Infrequent use should not mean that short-term lets do not need to meet safety standards, but that issue will be considered in much more detail in the consultation.

The shape of England’s guest accommodation landscape has changed greatly over the past 15 years. Online platforms have enabled greater choice in accommodation for holidaymakers and have brought many benefits to the tourism sector. This proliferation of a new type of guest accommodation has, however, been unregulated, which has prompted concerns including on safety, as my noble friend highlighted. We want to ensure that England continues to provide a safe and competitive guest accommodation offer, while also supporting those who live and work in our local visitor economies.

That is why the Government launched a call for evidence on this topic, as an important first step in understanding how we can ensure we continue to reap the benefits of short-term lets, while also protecting holidaymakers and local interests. This initial call for evidence, which ran between June and September last year, was indeed led by DCMS, as it follows on from previous work that that department did, as short-term lets are an integral part of the UK visitor economy. A report on that call for evidence will be published at the same time as the consultation on the registration scheme, this summer, and I reassure noble Lords that both departments are working together closely because of their shared interest in the scheme.

It has become clear from the call for evidence process that there is a compelling case for introducing light-touch regulation in this sector, and that is what we are intending to do through the Bill. The Government are also introducing a registration scheme for short-term lets through the Bill. The details of how the scheme will operate will be explored through a public consultation, which will be published before this year’s Summer Recess with a view to the register being up and running as soon as possible thereafter. The consultation is intended to flesh out many different aspects of how the scheme would operate, such as what information would be collected, who would administer the scheme, which requirements should be satisfied as a condition of registering and whether any fees would be charged; it will also cover any enforcement powers, which were asked about by an earlier contributor to the debate.

The important matters on safety that noble Lords raised—

[Lord Stunell (LD)]

I appreciate what the Minister said about enforcement. It was in fact me who talked about that—not my noble friend Lord Shipley, as was widely said. Enforcement is vital because without it, the scheme becomes a dead letter. Making sure that any costs or fees take adequate account of that is quite important.

[Baroness Bloomfield of Hinton Waldrist (Con)]

The noble Lord has made that point well and I will certainly take it back to the department, which will take note of it.

Regarding a precise time definition for short-term lets, it is not the length of time but the activity that is important. In essence, the definition of a short-term let is a dwelling used by a guest, in return for payment, that is not the guest’s main residence

The noble Baroness, Lady Taylor, asked whether the planning changes that the Secretary of State referred to are the subject of the planned consultation on a short-term let use class, as discussed by this Committee on Monday. I recognise that a number of the questions asked by noble Lords will be answered only by the consultation process. However, I hope that, in the meantime, I have been able to offer at least some reassurance; I therefore ask the noble Lord, Lord Foster, to withdraw his amendment.

Non-Domestic Rating (Lists) (No. 2) Bill

Debate between Lord Stunell and Baroness Bloomfield of Hinton Waldrist

2nd reading & 2nd reading (Hansard) & 2nd reading (Hansard): House of Lords
Monday 18th January 2021 Lords Chamber

[Lord Stunell (LD) [V]]

My Lords, the non-domestic rating Bill is a simple Bill but it has some important ramifications that I want the Minister to clarify in this debate.

The first point I want to explore is how the Government intend to compensate local authorities for the income lost through the current Covid-19 emergency rates rebates, particularly for retail premises. As the Minister himself said, that has cost around £10 billion in this financial year, and it is at least a possibility that there will be some extension of that rebate system into the next year. My first question to the Minister is therefore: who is carrying the burden of that shortfall? Are the Chancellor and the Treasury making up the missing income so that local authorities do not lose out on the redistribution, or is the payout to the fund being cut and the damage borne by local authorities? The Minister may feel that that is outside the scope of the Bill, but that matter is very relevant to the point I shall explore in just a minute or two.

The Bill is the end product of a yo-yo policy-making process by the Government. Plan A was to reduce the review periods to every three years with a review date in 2022. That was changed to an intention to bring the review forward to 2021, to tackle the increasing evidence that outdated valuations were producing more and more unfair burdens for some—especially high-street retailers—and unearned tax holidays for others, especially distribution centres and out-of-town warehouses.

However, we now have a Bill that is to be effective from 2023, which is one year later than the original plan A and two years later than plan B. The Bill, plan C, avoids carrying out revaluation surveys until the Covid-19 pandemic is over—we sincerely hope. That makes sense in the current circumstances; it is not an issue for me at least. But the crucial point that remains is for how long hard-pressed retailers will be left paying exorbitant rates for rapidly depreciating high-street locations. How soon will they get the relief they so desperately need? One unintended result of the switch from plan B to plan C could be that that relief will be delayed by up to two years—a point the noble Lord, Lord Reid of Cardowan, made eloquently.

One key to this may be the antecedent valuation date, or AVD. That is the baseline date from which assessing the rental values will be made. I am indebted to the Association of Convenience Stores for its briefing on that topic. The first part of the briefing welcomes a proposed AVD of 1 April this year because the ACS believes that would allow full account to be taken of the steep decline in retail values and would give its members smaller rates bills to pay. The second part makes a case for the urgent extension of the rates relief scheme into the coming year because of the continuing impact of Covid-19 on its businesses. Indeed, it says in its evidence that four out of 10 of its members would have gone out of business without that support this year, so it has been absolutely critical.

The Bill is running two years later than the Government originally intended. There must not be a two-year delay in bringing the benefits of an updated valuation to the retail sector, which has been left on its knees, not just by Covid-19 but by underlying trends in retail purchasing that were already in train but have been hugely accelerated as a result of it.

If the revaluation is done this year and comes into force only in 2023—and, even worse, if there is any kind of a transition period that delays any benefits to it—the retail industry, already struggling desperately, will be left high and dry between the end of the Chancellor’s scheme and their incoming reduced rates bills. That brings me back to the working of the current retail rate relief system. If the Chancellor has acknowledged the acute pressures facing retail businesses by granting them business rates relief, and if he pays heed to what the Association of Convenience Stores and many others have had to say about extending that scheme, surely there has to be some joined-up thinking across government departments. It cannot make any sense for there to be a critical gap of two years, possibly more, between the end of the Chancellor’s scheme and the delayed implementation of the rates revaluation, given that that review is to be based on an AVD of 1 April this year.

Can the Minister confirm that the AVD will indeed be on 1 April and that he will strongly resist any idea of phasing in the reliefs granted by the revaluation beyond 2023, which would delay the benefit to the retail sector even further? Will he explore any available options for implementing at least some parts of the revaluation at an earlier date than April 2023 so that their full impact will immediately be available sooner, to the retail sector in particular? The public lavatories Bill has a backdated provision granting retrospective tax relief from 2020, so the concept will not be unfamiliar to him. Will he consider introducing a similar provision for the retail rebates in this Bill as well?

Finally, if an early start is not an option, will he work with the Chancellor to provide appropriate transitional support to that sector between the end of the Chancellor’s scheme—that is, the current support package—and the new valuations taking effect? It would be folly for what is now a two-year delay in the original timetable proposed by the Government, which would lead to a near-fatal blow to our high streets—

[Baroness Bloomfield of Hinton Waldrist (Con)]

I remind the noble Lord of the advisory speaking limit.