Telecommunications Infrastructure (Relief from Non-Domestic Rates) Bill

Debate between Marcus Jones and Amanda Milling

3rd reading: House of Commons & Committee: 1st sitting: House of Commons & Report stage: House of Commons
Tuesday 5th September 2017 Commons Chamber

[Mr Jones]

Even in developments of under 30, developers are required to provide a broadband connection for the people who are going to be occupying those properties. It is the developments of over 30 that require fibre broadband to be connected. While my hon. Friend does not seem happy with the premise on which that is based, the rationale behind it is based on the viability of new developments. Quite often, the smaller developments are more difficult for developers to find viable. Therefore, rather than prevent those developments from taking place by overburdening developers with regulations, a balance was struck.

[Amanda Milling (Cannock Chase) (Con)]

Since speaking on Second Reading about connectivity to new homes, another case arrived in my inbox last week. I cannot go through it in an intervention, but needless to say it involves BT Openreach and the developer, with lots of emails to and from the constituent. I am sure that I will be writing to my right hon. Friend the Minister for Digital about it over the next few weeks.

[Mr Jones]

I am sure that my right hon. Friend the Minister will be very happy to talk to my hon. Friend about this issue.

As I have said, through our work with the sector and the Valuation Office Agency, we believe that we have found a clear way to capture the concept of new fibre. We have set this out in our draft regulations and the consultation document that we published last week. However, this is a technical and fast-moving sector, so we will keep the operation of the relief under review to ensure that it is working as planned and that the regulations keep pace with the continuing technical advances and changes in the industry. Accordingly, it will remain important that we have the powers available to amend the operation of the relief scheme over time. The powers in the clauses will also allow the Secretary of State to determine the level of relief to be awarded. As I have said, the Government intend to allow telecoms operators 100% relief, but only for new fibre. That new fibre will of course form part of existing telecom networks with existing ratings assessments.

Through the operation of this scheme, we intend to ensure that the relief is awarded only in respect of new fibre and not existing fibre. To achieve this, the powers in the clauses will allow us to set, by a formula contained in regulations, the correct level of relief for each property, reflecting the amount of their network that qualifies for the relief. This will be based on a certificate of the amount of rateable value that it appears to the valuation officer is attributable to the new fibre. The consultation document we published last week explains how, when taken together, the formula in the Bill and the formula in the draft regulations will deliver the correct relief for a property.

As I have said, these provisions are mirrored in the first three clauses of the Bill. Sometimes the letters in the formula differ, but that is merely to conform to existing lettering in the sections into which the formula will be introduced. Hon. Members will have noticed that clause 1 includes a table referring to different subsections. In theory, there will be instances where a property could be eligible for the new fibre relief but also for another such as charitable relief, although we believe this to be extremely unlikely. However, for completeness, the table in clause 1 makes it clear which relief should apply. No such conflict can arise for unoccupied properties or properties on the central list, so the table appears only in clause 1. The rules we have adopted here are consistent with the existing hierarchy of reliefs in the business rates system. Charity relief will apply above all others, and then reliefs such as small business rate relief. The relief for new fibre will apply only where no other relief applies.

Clause 4 gives effect to the schedule to the Bill. As I have described, the Bill makes a number of amendments to different sections of the Local Government Finance Act 1988. Most of the amendments in the schedule are to that Act, and are necessary merely to ensure that those provisions continue to make sense and operate as intended. We are also in the schedule making consequential changes to the Business Rate Supplements Act 2009. Ratepayers entitled to mandatory reliefs in the main business rates system are also entitled to the same relief against the business rate supplement currently applied to larger properties in London. The Bill ensures that that continues to apply for the new fibre relief through these consequential amendments.

Clause 4 also includes the normal power to make regulations for other consequential provisions. We intend to use these powers to make consequential changes to the regulations that govern the transitional relief scheme. This will ensure that the relief is also available for those ratepayers who are either receiving transitional relief or whose reductions from the revaluation are being capped to fund the transitional relief.

Clause 5 provides the normal authority from Parliament that is necessary when making provisions that create a charge on public funds.

Clause 6 provides that the Bill applies to England and Wales. Business rates policy is devolved, so it will be for the Welsh Government to consider whether to introduce a similar relief. The Welsh Assembly Government have asked for the powers in this Bill to apply to Wales, although it will of course be a matter for Welsh Ministers to exercise those powers in relation to Wales. In Scotland and Northern Ireland, business rates legislation is made in their own Parliaments, so again it will be a matter for them whether to proceed with this measure. However, under the Barnett formula, Wales, Scotland and Northern Ireland will receive their share of the funding of the relief. As we have discussed, the relief for new fibre will apply from 1 April 2017, so clause 6 also provides that the amendments and powers in the Bill can take effect retrospectively for the financial year commencing 1 April 2017.

Oral Answers to Questions

Debate between Marcus Jones and Amanda Milling

Monday 14th December 2015 Commons Chamber

[Mr Marcus Jones]

This Government are doing a number of things to help the type of traders that the hon. Gentleman refers to. We have allowed sensible planning changes to allow local areas to respond more flexibly to changing market conditions on the high street. We are tackling over-zealous parking practices and I am working closely with retail organisations on the Future High Streets Forum to develop strategies that will enable our high streets and communities to meet the future needs of the consumer.

[Amanda Milling (Cannock Chase) (Con)]

I commend Staffordshire fire and rescue service for its work in fire prevention, which has contributed to a fall in call-outs, but does my right hon. Friend agree that further integration and collaboration between police, fire and other blue light services would help to identify vulnerable people more effectively, which would lead to better outcomes for the public and great efficiency savings?

Oral Answers to Questions

Debate between Marcus Jones and Amanda Milling

Monday 14th September 2015 Commons Chamber

[Mr Jones]

I thank the right hon. Lady for her question. She will be a loss to the shadow Front Bench. Local authorities already have significant powers to bring empty properties back into use. They are incentivised by receiving the new homes bonus to get long-term empty properties back into use. They also have the power to change the council tax regime to charge more council tax on properties that stand empty for a long period. I suggest that she contact her local authority and ask what it is doing about this.

[Amanda Milling (Cannock Chase) (Con)]

23. Following a passionate local campaign, planning permission was recently rejected that would have seen the Ascot Tavern, a local pub in Cannock, demolished and replaced by yet another new supermarket. Local campaigners are looking at registering the pub as a community asset. What measures are the Government taking to assist and support communities who find themselves in that situation and similar ones?

[Mr Jones]

I welcome my hon. Friend’s interest in this important subject. We have removed permitted development rights from pubs that are listed as assets of community value. As was promised in our manifesto, we are committing £1.5 million to a pub loan fund to support community groups in taking ownership of their local pub. The My Community advice service also offers important advice and support to local groups that are looking to take on their local.