Telecommunications Infrastructure (Relief from Non-Domestic Rates) Bill

Rosie Winterton Excerpts

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

Question proposed, That the clause stand part of the Bill.

[The Second Deputy Chairman of Ways and Means (Dame Rosie Winterton)]

With this it will be convenient to discuss the following:

Clauses 2 to 4 stand part.

That the schedule be the schedule to the Bill.

Clauses 5 and 6 stand part.

New clause 1—Report on operation of the relief—

“(1) The Secretary of State shall, by 30 September 2018, lay a report before Parliament containing an assessment of the operation of the relief in the 2017-18 financial year.

(2) The report shall include an account of—

(a) the impact upon the level of local authority income raised through non-domestic rating,

(b) the level of investment likely to have been stimulated by the proposed relief, and the scope for extending the relief to other forms of investment,

(c) whether the duration of the relief is appropriate,

(d) the views of those subject to charge of non-domestic rates on the relief, and

(e) the efficacy of the existing mechanism for distribution of relief.”

[The Parliamentary Under-Secretary of State for Communities and Local Government (Mr Marcus Jones)]

The Government are committed to supporting full-fibre telecommunication infrastructure and the roll-out of 5G. This will deliver a step change in the speed, service quality and reliability of broadband and mobile services. Independent research suggests that increased broadband speed alone could add £17 billion to UK output by 2024, so this is a vital measure for the whole economy. The Bill will provide the powers we need to implement an important part of that strategy.

At the 2016 autumn statement, the Government announced 100% rate relief for new full-fibre infrastructure in England. The clauses in the Bill will allow us to deliver that relief with retrospective effect to 1 April 2017. We have already published draft regulations that illustrate how we will use these powers to implement the relief. The draft regulations have been prepared in consultation with telecoms experts in the Government, Ofcom and telecoms providers. Business rates and telecoms are technical fields so there is considerable scope for complexity where they meet. However, I am glad to say that through our work with the sector, we believe that we have found a clear approach to allow the valuation officer to identify, capture and quantify new fibre.