Local Government Finance Bill

Lord Ahmad of Wimbledon Excerpts

Wednesday 10th October 2012 Lords Chamber

Moved by

[Lord Ahmad of Wimbledon]

51: Schedule 1, page 35, line 14, leave out “(an “in-year calculation”)”

[Lord Ahmad of Wimbledon]

My Lords, Amendments 51 to 56 in this group are minor technical amendments to the provisions about safety net payments on account. A central feature of the rates retention scheme is that authorities will be eligible for safety net payments if their business rates income declines significantly. We have just finished consulting on the threshold below which the safety net should apply.

Equally important is the process by which authorities will be able to access safety net payments. In our discussions with local government through the working group established to look at the technical details of the scheme, it was established that as part of the process for setting their budgets, authorities will have to estimate their business rates income before the start of the financial year. On the basis of those estimates they will be able to calculate whether they will be likely to need a safety net payment. The strong view of the sector is that they should then be able to claim a safety net payment “on account”, as provided for in paragraph 26 of the schedule. The Government agree with this position.

However, the drafting of paragraph 26, which refers throughout to an “in-year calculation”, might be thought to preclude a calculation made “before the year”. It is to remove this possible ambiguity that we have tabled the amendments in this group. With this explanation, I ask noble Lords to accept them. I beg to move.

[Lord McKenzie of Luton]

My Lords, the amendments seem entirely straightforward. We are happy to support them.

--- Later in debate ---

Moved by

[Lord Ahmad of Wimbledon]

52: Schedule 1, page 35, line 24, leave out “an in-year” and insert “a”