Non-Domestic Rating (Shale Oil and Gas and Miscellaneous Amendments) Regulations 2015

Lord Kennedy of Southwark Excerpts

Tuesday 24th February 2015 Grand Committee

[Lord McKenzie of Luton]

My final question was to do with the status of outstanding appeals, and whether we can have an analysis of those between the relevant revaluation years.

[Lord Kennedy of Southwark (Lab)]

My Lords, first, I declare an interest as an elected member of Lewisham Council. As the Minister outlined, we are debating two sets of regulations. The first set, as he said, forms part of a scheme for local retention of business rates; the purpose is to designate classes of property liable to business rates to which the business rates income is to be wholly retained by local authorities. The second set of regulations makes changes to the operation and calculation of levy and safety net payments under the scheme for local retention of non-domestic rates.

I have no issue with either of these regulations as they stand, and I can see the benefit of incentivising local economic growth. I agree with my noble friend Lord McKenzie of Luton on the points that he raised; I would be interested to hear the response from the Minister to those points. I see the point about incentivising fracking schemes locally.

I should say at this point that I am a supporter of the UK doing all that it can to maximise different energy sources as our use and demand for power increase, ensuring security of supply. We all accept that fracking is not without its critics, and in some places controversy as well. As this is a relatively new technology in the UK, proceeding with appropriate levels of caution, risk assessment, and safety and security is really important, as it is that things are handled well here. Anything that the noble Lord could say about that in respect of local government would be appreciated.

I noted the comments in the accompanying note that some of the respondents to the consultation were concerned that these proposals could adversely affect independent planning decisions, and it would be useful if the noble Lord could say something about that when he responds to this debate. It would also be useful if the noble Lord could comment on the suggestion from the energy sector that the scheme could be extended to other aspects of energy-source extraction. I am not at all convinced by that, but it would be helpful to hear the views on this of the noble Lord and those of his department.

The second set of regulations is a sensible measure that protects local authorities against the risk of volatility in local rates income and the risk to local services that that could bring about by providing a safety net. They obviously make some changes there. I am content with these regulations and look forward to the noble Lord’s response.