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Business Rate Supplements Bill

My Lords, I declare an interest as a chartered accountant and as a director of companies that pay business rates, and I have been a councillor for more than 10 years, so on this amendment, I probably have a foot in each camp. I cannot see the logic of the Government's position in not giving businesses a vote in all instances. That seems to defy all logic. Last night, while listening to the European election results, I heard Harriet Harman saying time and again that the Government must listen to what the people are saying, that the Government must address their concerns. Here is the ideal opportunity for the Government to do just that. All business organisations are saying that there should be a vote in all instances where a business rate supplement is charged. In fact, most, if not all, submissions from lobby groups that I have received argue that there should be a vote in all instances. That is, except for the Local Government Association. As my noble friend Lord Jenkin has just said, "They would say that, wouldn’t they?". If, as Harriet Harman says, the Government are going to listen to and address the concerns of business, this would be a good place to start. After all, the Government and the Prime Minister keep telling us that they want to support business. Here is their opportunity. The second piece of logic in the Government's position that I do not follow is that of consistency. The Government are prepared to give business a vote if its total contribution is greater than a third of the total cost of the project. I cannot follow the logic of not giving the vote below one-third. What is the significance of the percentage to businesses? None at all, really—a 2 per cent charge is a 2 per cent charge as far as business is concerned. In addition, as my noble friend Lord Jenkin just mentioned, the Government allow voting in all instances under the BID schemes, whatever the percentage contribution from businesses, so why not now with the business rate supplement? If the Government want to be consistent, they should allow voting in all instances for the business rate supplement, as they do for the BID schemes. The whole point of the Bill is to raise money for local infrastructure projects that will benefit local businesses. Local authorities are expected to work in partnership with local businesses. There will be consultation but, as the Bill stands, that can be ignored. Local government can press ahead with a pet project despite the wishes of businesses. Business may not consider that the local authority’s chosen project is the right or best project for business in that area, but as things stand the local authority can override its wishes. What would concentrate the minds of local government is the knowledge that, at the end of the day, the project will be subject to a vote from the business community in all instances. It would also ensure that both parties really worked in partnership to ensure that the right project was selected.