Draft Non-Domestic Rating (Alteration of Lists and Appeals) (England)(Amendment) Regulations 2018

Mark Francois Excerpts

Tuesday 13th March 2018 General Committees

[Mr Mark Francois (Rayleigh and Wickford) (Con)]

Mine is a very brief contribution. May I lend weight to the very good point made by my right hon. Friend the Member for Meriden? I, too, have some equestrian centres in my constituency, and I have received representations from them on exactly the same point. The Minister will know that the British Horse Society is quite exercised about this matter. I do not know how much he can say about that today, but will he undertake to take the point away and enter into discussions with the Valuation Office Agency to see whether something can be done to unpick that rather difficult and, I think, unintended consequence of the Government’s action?

[Mr John Whittingdale (Maldon) (Con)]

I had not intended to speak, but I am spurred to do so by my right hon. Friends the Members for Meriden and for Rayleigh and Wickford. I represent the Chelmsford equestrian centre, which has been to see me about this very point. The fact that three members of a fairly small Committee have raised this issue indicates that there is a serious problem. I am sure that the Minister did not come here fully briefed to talk about equestrian centres, but we would appreciate it if he looked into the issue and let us know about it in due course.

[Mr Francois]

And thus avert a major rebellion.

[The Chair]

If I were allowed to raise the issue, I would do so too.

[Rishi Sunak]

From my perspective, this has been a good and helpful debate. I was grateful to receive so many contributions, which, to be honest, I did not expect at 9 o’clock on a Tuesday morning. I shall briefly turn to the various points raised, starting with those of the hon. Member for Oldham West and Royton.

The hon. Gentleman talked about the schedule of fees, which is £200 for smaller businesses and £500 for larger ones. That approach was taken in the first instance for reasons of simplicity. He will know that Her Majesty’s Revenue and Customs’s penalty system is relatively complicated and works on a sliding scale as a percentage of the potentially lost revenue. The decision in this instance was to start with a simple, fixed system. On the £500 maximum penalty, I appreciate his point about that perhaps not being a huge amount for a large company and the Government are committed to reviewing the limits over time. In the short term, as he rightly pointed out, the limits are fixed in primary legislation—in the Enterprise Act 2016.

The hon. Gentleman’s second point was about the VOA’s capacity. In the first instance, I believe it is right for any agencies of the state to ensure that they make the best use of their resources and organise themselves as efficiently as possible for the benefit of all our constituents who work hard to pay the taxes that fund them. That said, the hon. Gentleman is right that with the introduction of a new system the appropriate capacity must be there to deliver the smooth transition we would all like to see. Part of the reason for the reforms to the business rates system is to reduce the volume of speculative appeals. As I mentioned, 70% of appeals under the previous system were denied in the end, so we clearly had the balance wrong. The new system should reduce the burden for things that are, frankly, a waste of time for the VOA and, in time, the benefits of that will come through. In the short term, I assure the hon. Gentleman and the Committee that I will hold the VOA to the strongest possible account for delivery against the targets and will shortly meet the agency’s director to discuss exactly that.

On the hon. Gentlemans third point, NHS trusts are independent of my Department and of the Government in general, as he will be aware. That said, the scale of the challenge he talked about has reached my desk. I am monitoring it and am in discussions about it with the LGA. I think I agree with his broad point that if there are to be large transfers of financial resources between different parts of Government, it is appropriate that that is done through the Government and the normal matter of a spending review, with the priorities being worked out through Parliament rather than through ad hoc decisions of courts. We will keep the matter under review.

On the points raised by my right hon. Friends the Members for Meriden, for Rayleigh and Wickford and for Maldon, as I probably come from one of the most rural constituencies in the country—certainly among those in this room—I am personally aware of the issue with riding schools, spending, as I do, most of my Saturday mornings with my daughters at the Northallerton equestrian centre. I would be delighted to take up the issue directly with the VOA, to ensure that appropriate information flows properly between the various claimants and the VOA and to see whether there is a broader system issue that has not been picked up by the regulations.

[Mr Francois]

May I take this opportunity to congratulate the Minister on a very polished debut? I knew today was going to be an interesting day when I went down to the Tea Room and found it in darkness—clearly the victim of a Russian cyber-attack. I am grateful that he said he would look into that point with the VOA, but I would like to charge him to do slightly more. When he has done so, will he write to members of the Committee, including the Chair, who obviously has an interest, to let us know whether it is possible to make any progress?

[Rishi Sunak]

I would be delighted to write to you, Mr Rosindell, and to other members of the Committee on that point. Before I confirm that, however, in the short term, I urge hon. Members to ensure that riding stables in their constituencies appeal to their local authorities for discretionary relief, as I have encouraged my auction marts and riding stables to do. The Chancellor announced a £325 million fund to deal with cases that were not captured by the other reliefs put in place around the time of the revaluation.