Local Government Finance Bill

Baroness Anelay of St Johns Excerpts

Wednesday 10th October 2012 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Communities and Local Government (Baroness Hanham)]

My Lords—

[Baroness Anelay of St Johns]

My Lords, I know that we have just returned from rather a long recess, but may I remind noble Lords that, in order to enable the Minister to move her amendments, it may be helpful to leave the Chamber rather quietly?

[Baroness Hanham]

My Lords, the amendments in this group concern the funding of business rate relief in enterprise zones. Enterprise zones will contribute to the growth of the local and national economy through a range of measures and financial incentives. One of those incentives is a discount on business rates. The discount will apply for five years and be available up to the state aid de minimis level for businesses that move into an enterprise zone before April 2015. The Government have committed fully to fund these business rate discounts and the amendments in this group will ensure that, through regulations, we are able to deliver on that commitment.

Amendment 25 will give the Secretary of State powers to provide for the deduction of a particular amount from the central share, including by reference to amounts of rate relief awarded. This will allow billing authorities to deduct the cost of discounts in enterprise zones from their central share payments to the Secretary of State, thereby compensating them for the cost of those discounts. As this will reduce the revenue received by the Government, Amendment 25 also provides that the regulations will require the consent of the Treasury. Amendment 36 will then allow us to ensure that the compensation for the cost of the enterprise zone discounts is shared as appropriate between the billing authority and the major precepting authorities. It does this by allowing us, in regulations, to require the billing authority to make payments to major precepting authorities so that, where appropriate, those precepting authorities are also compensated for their share of the cost of the discount.

The remaining amendments in this group are consequential on these amendments and, with this explanation, I hope noble Lords will be prepared to accept them.