Non-Domestic Rating (Nursery Grounds) Bill

Debate between David Drew and Yvonne Fovargue

2nd reading: House of Commons
Tuesday 5th June 2018 Commons Chamber

[Yvonne Fovargue (Makerfield) (Lab)]

I am pleased to say that this Bill has been addressed in a climate of co-operation, as has been said. The Bill irons out an anomaly in the business rate system highlighted by the Tunnel Tech case, as we heard from the hon. Member for Chichester (Gillian Keegan), and it is the right thing to do. It removes unnecessary doubt, although, as the hon. Member for Harrow East (Bob Blackman) has highlighted, there are still little grey areas and perhaps those need looking at in the future. The Bill will make claims clearer for small businesses and, we hope, avoid lengthy and costly court cases in future.

We have all heard how important the horticultural industry is to many areas, and the hon. Member for Taunton Deane (Rebecca Pow) highlighted that. We also heard about the many variations in the horticultural and plant industry, and she has tempted us to go to look at her garden after all she said about planting this weekend. There is an increased use of new technology, with the polythene tunnels and grass and crop growing, and of businesses that specialise in one discrete stage of the growth and do not rear the crops to their mature state ready for the market. Fewer distinctions seem to be made between “nursery ground” and “market garden”, and the Bill does recognise that, even if it retains the terminology. A lot of businesses contain elements of both and simply prefer to see themselves as “food growers”, rather than separating the businesses out. Nobody here wants to stand in the way of home food production, or of more crop-growing operations taking place under the cover of polythene or involving some of the many other novel, innovative techniques that our growers are looking at now. That can lead to cost savings for consumers and more efficient use of limited land, and, as we have heard, it can also protect us from bringing in imported seeds, which may also bring in imported diseases. The hon. Member for Boston and Skegness (Matt Warman) highlighted the fact that removing some of the anomalies and giving people confidence that the business rates will not be charged allows his local businesses to grow.

[Dr David Drew (Stroud) (Lab/Co-op)]

Does my hon. Friend accept that this is one piece of evidence of a Government agency, the Valuation Office Agency, seemingly overstepping the mark, causing confusion and not a little additional cost? Does she agree that this Government need to get a grip on this sooner rather than later?

[Yvonne Fovargue]

I do agree with my hon. Friend on that. Indeed, this is not the first time the VOA has caused confusion. To see that, we have only to look at the combined premises Bill that had to be brought before the House to separate out the issue of whether premises were conjoined because of how close they were. That was discovered to be wrong from the VOA, too.

I am pleased that the Government have confirmed that the revenue they have received from plant nurseries being assessed for business rates will be returned, but I am not sure we can call it an unexpected windfall. This is money that the local authorities will have factored into providing local services. The hon. Member for Taunton Deane said this could be hundreds of thousands of pounds in some cases, and that is a big loss to a local authority already struggling with the Government cuts at the moment. I agree with my hon. Friend the Member for Oldham West and Royton (Jim McMahon) that this and all policies should be costed. Without that, the effective scrutiny of financial implications is impossible. It is just not good enough to talk about a “handful” if that handful involves hundreds of thousands of pounds to a local authority. I would like to see this and all future policies costed. If the VOA will not give the figures to the Government, surely the Government should be telling that other arm of government, as it is a Government agency, that they need these figures.