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

Baroness Laing of Elderslie Excerpts

2nd reading & 2nd reading: House of Commons & Programme motion & Programme motion: House of Commons & Ways and Means resolution & Ways and Means resolution: House of Commons
Wednesday 30th September 2020 Commons Chamber

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Kelly Tolhurst)]

I thank all hon. Members for their contributions to this debate, but also for the ideas and the clear passion that Members across the House have on this issue.

I want to pick up on just a few points, because I know time is short. While I have great respect for the hon. Member for Blackburn (Kate Hollern) from our previous dealings, this country has been facing one of the most significant pandemics, and the response from this Government in support of business has been significant. Over the next five years alone, there will be over £23 billion in support for businesses. We have taken steps quickly and in an agile way, and we have been able to protect those jobs, as our constituents quite rightly look to us to do.

I would like to touch on retail, which has been mentioned a lot today. Quite rightly, when people think of rates and when people think of our communities, they look at our town centres and our high streets. Of course, in my previous role, where retail was very much a focus, this issue was not lost on me. One of the things we need to recognise is that, during the pandemic, we were able to double the amount of retail relief. The Chancellor expanded this to 100%, enabling more retail, hospitality and leisure businesses to make use of those discounts.

We also need to recognise, as hon. Members have highlighted, the changing nature of our high streets. Of course, my Department has launched the £1 billion future high streets fund, particularly to work with local authorities to make sure we can take our high streets to the next phase. We are working with local authorities and communities to develop the thriving high streets that we sorely need.

The Bill may be narrow and technical in scope, but in practice it does deliver on an important Government tax commitment by setting in law the date of the next business rate revaluation on 1 April 2023. Business rates are a local tax, rather than a national tax, which is why this small Bill is necessary. However, for many businesses, this Bill is as important as a national tax measure. We hear from rate payers that the accuracy of rateable values is important to the fairness of the business rate system. Frequent valuations ensure that business rates bills are up to date, and accurately reflect rental values and relative changes in rents. That is why we remain committed to frequent revaluations and why we had previously decided to have the next revaluation in 2021. That revaluation would have been based on the rental market at 1 April 2019, before coronavirus. I trust hon. Members understand the exceptional circumstances in which we decided to no longer proceed with the 2021 revaluation, and I very much welcome the support that has been expressed from across the House.

I would like to pick up on a point made by the hon. Member for Westmorland and Lonsdale (Tim Farron). We recognise the issue he raises relating to holiday lets. We have consulted on possible changes to the criteria which could enable more holiday lets to be registered for business rates. We will set out a Government response once we have considered that in more detail.

I also want to pick up on a point expressed by many hon. Members today about the fundamental review of rates. The Treasury has set out the scope and launched a call for evidence. It has been great to hear from hon. Members in this debate, including my hon. Friends the Members for Thirsk and Malton (Kevin Hollinrake), for Keighley (Robbie Moore) and for Ruislip, Northwood and Pinner (David Simmonds), the hon. Member for Richmond Park (Sarah Olney) and my hon. Friend the Member for Dudley North (Marco Longhi). I very much hope they participate fully in the call for evidence and feed in their ideas, so that the Treasury can evaluate them. The scope of the fundamental review includes reducing the overall burden, improving the current system, and considering more fundamental changes in the medium and long term. Hon. Members have rightly called for that. We do hear in our constituencies that the burden of that single bill is large for so many of our businesses.

These measures are particularly important for local authorities. My Department has held discussions with representatives from local government, including the Local Government Association. For local authorities, we intend to make any adjustments to the rates retention scheme that are necessary to ensure that locally retained income is, as far as practicable, unaffected by the revaluation. That will give local authorities the assurance they need regarding locally retained income and revaluations. We will also ensure that local authorities have what they need to issue the new bills in a timely manner.

The Bill sets the next revaluation in 2023, but ratepayers do not have to wait until then to benefit from the reforms we have made to the rating systems. They are benefiting now from the small business rates scheme, which has removed 700,000 small businesses from the rating, and from a £10 billion package targeted on the businesses most affected by the pandemic, which means that more than half of all ratepayers in England will pay no rates at all this year.

I thank colleagues for their contributions to the debate and look forward to the House supporting the Bill.

Question put and agreed to.

Bill accordingly read a Second time.

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

Motion made, and Question put forthwith (Standing Order No. 83A(7)),

That the following provisions shall apply to the Non-Domestic Rating (Lists) (No. 2) Bill:

Committal

(1) The Bill shall be committed to a Committee of the whole House.

Proceedings in Committee, on Consideration and up to and including Third Reading

(2) Proceedings in Committee, any proceedings on Consideration and any proceedings in legislative grand committee shall (so far as not previously concluded) be brought to a conclusion two hours after the commencement of proceedings in Committee of the whole House.

(3) Proceedings on Third Reading shall (so far as not previously concluded) be brought to a conclusion three hours after the commencement of proceedings in Committee of the whole House.

(4) Standing Order No. 83B (Programming committees) shall not apply to proceedings in Committee of the whole House, to any proceedings on Consideration or to other proceedings up to and including Third Reading.

Other proceedings

(5) Any other proceedings on the Bill may be programmed.—(Eddie Hughes.)

Question agreed to.

Non-Domestic Rating (Lists) (No. 2) Bill (Ways and Means)

Motion made, and Question put forthwith (Standing Order No. 52(1)(a)),

That, for the purposes of any Act resulting from the Non-Domestic Rating (Lists) (No. 2) Bill, it is expedient to authorise provision for, or in connection with, changing the dates on which non-domestic rating lists must be compiled.—(Eddie Hughes.)

Question agreed to.

[Madam Deputy Speaker (Dame Eleanor Laing)]

In order to allow the safe exit of hon. Members participating in this item of business and the safe arrival of those participating in the next, I shall now suspend the House for three minutes.