John Bercow
Main Page: John Bercow (Speaker - Buckingham)
The Parliamentary Under-Secretary of State for Communities and Local Government (Andrew Stunell)
I beg to move, That the clause be read a Second time.
Mr Speaker
With this it will be convenient to discuss the following:
Government new clause 10—Power for HMRC to supply information for purposes of council tax
New clause 2—Discounts—
‘(1) Section 11 of the LGFA 1992 is amended as follows.
(2) In subsection (1), for the word “shall”, substitute “may”.
(3) In subsection (2)—
(a) for the word “shall”, substitute the word “may”;
(b) for the word “twice”, substitute the words “a multiple of”.
(4) Omit subsections (3) and (4) and insert—
(a) In this section “the appropriate percentage” and “multiple” are to be determined by the relevant local authority and approved as part of their Council Tax Reduction Scheme as set out in Schedule 1A.
“(b) The eligibility for any reduction shall be determined as part of the Council Tax Reduction Scheme.
(4) Schedule 1 to this Act shall have effect for determining who shall be disregarded for the purposes of discount.”.’.
New clause 5—Report on effects of provisions—
‘At a date no later than three years from the implementation of this Act the Secretary of State shall prepare a report detailing the effects of these provisions on—
(a) the number of people receiving council tax support in each local authority including the number in employment, the number actively seeking work, and the number of pensionable age, and
(b) the costs incurred by each authority in running the scheme, including the cost of appeals.’.
New clause 7—Power to set higher amount for second homes—
‘(1) The LGFA 1992 is amended as follows.
(2) After section 11A insert—
“11C Higher amount for second homes: England
(1) For any financial year, a billing authority in England may by determination provide in relation to its area, or such part of its area as it may specify in the determination, that if on any day a dwelling is a second home—
(a) the discount under section 11(2)(a) shall not apply, and
(b) the amount of council tax payable in respect of that dwelling and that day shall be increased by such percentage of not more than 50 as it may so specify.
(2) The Secretary of State may by regulations prescribe one or more classes of dwelling in relation to which a billing authority may not make a determination under this section.
(3) A class of dwellings may be prescribed under subsection (2) by reference to such factors as the Secretary of State thinks fit and may, in particular, be prescribed by reference to—
(a) the physical characteristics of, or other matters relating to, dwellings;
(b) the circumstances of, or other matters relating to, any person who is liable to the amount of council tax concerned.
(4) Where a determination under this section has effect in relation to a class of dwellings—
(a) the billing authority may not make a determination under section 11A(3), (4) or (4A) in relation to that class, and
(b) any determination that has been made under section 11A(3), (4) or (4A) ceases to have effect in relation to that class.
(5) A billing authority may make a determination varying or revoking a determination under this section for a financial year, but only before the beginning of the year.
(6) A billing authority which makes a determination under this section must publish a notice of it in at least one newspaper circulating in its area and do so before the end of the period of 21 days beginning with the date of the determination.
(7) Failure to comply with subsection (6) does not affect the validity of a determination.
(8) For the purposes of this section, the Secretary of State may by regulations prescribe the definition of a dwelling to be considered a “second home”.
(3) In section 11(2) (discounts: no chargeable residents) after “sections 11A”, insert “, 11C”.
(4) In section 11A (discounts: special provision for England) after subsection (4B) (inserted by section 9) insert—
“(4D) Subsections (3), (4) and (4A) are subject to section 11C (4).”.
(5) In section 66(2)(b) (matters to be questioned only by judicial review), after “section 8(2), 11A”, insert “, 11C”.
(6) In section 67(2)(a) (functions to be discharged only by authority), after “section 8(2), 11A”, insert “, 11C”.’.
Government amendments 42 to 48.
Amendment 6, in clause 8, page 5, line 28, leave out ‘2013’ and insert ‘2014’.
Amendment 7, page 5, line 29, leave out ‘2013’ and insert ‘2014’.
Amendment 4, in clause 10, page 7, line 41, at end insert—
‘(12A) After sub-paragraph (7) insert—
(7A) In this paragraph, “increase” means an increase under section 11C(1)(b) (higher amount for second homes: England).”.’.
Government amendments 49 and 50.
Amendment 1, in schedule 4, page 48, line 43, at end insert—
‘(8A) Before making regulations under sub-paragraph (8), the Secretary of State must consult with local authorities regarding any proposed requirements for schemes.’.
Government amendment 51.
Amendment 9, page 49, line 15, at end insert—
(d) notify all persons within their area receiving council tax benefit on or immediately following 1 April 2012, of the implications of the draft scheme, including the estimated impact of that scheme on their living standards.’.
Government amendment 52.
Amendment 2, page 49, line 22, leave out sub-paragraphs (4) and (5).
Amendment 10, page 49, line 44, leave out ‘2013’ and insert ‘2014’.
Government amendments 53 and 54.
Amendment 11, page 50, line 2, at end insert—
‘(3A) The default scheme must be designed in such a way as to ensure, insofar as can reasonably be assessed, that no person below pensionable age, in or seeking employment, shall receive a lesser entitlement to a council tax reduction than that to which they would have been entitled under council tax benefit.’.
Amendment 12, page 50, line 2, at end insert—
‘(3B) If the default scheme has the effect of reducing or removing a reduction to which any class of persons was entitled under council tax benefit, it must include such transitional provision relating to that reduction or removal as the Secretary of State, after consultation with representatives of local government, thinks fit.’.
Amendment 13, page 50, line 5, leave out ‘2013’ and insert ‘2014’.
Amendment 3, page 50, line 14, leave out sub-paragraphs (2) and (3).
Government amendments 55 to 61.
Andrew Stunell
I am delighted to be taking part in the resumption of the debate from the previous Session, as it is good to be resuming our consideration of this important Bill and these important provisions. The Bill is a major step forward in localising fundraising and decision making to local councils and restoring to them local control. Discussing local government finance is very much an acquired taste, albeit one that I can see has not been acquired by too many hon. Members today.
May I draw the House’s attention to the publication of the statements of intent, which the Department has tabled for the benefit of hon. Members over the past few days? The statements bring to the House’s attention a great deal of the technical work behind the Bill and of how the Government intend that the scheme should be implemented over the coming months.