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Business Rate Supplements Bill

My Lords, I am grateful to both noble Lords for their constructive approach to these issues. Of course local businesses should have confidence that they will be consulted if they are likely to have to pay the supplement. That is why Clause 6 requires levying authorities to consider whether they should consult those persons that they think will become liable for the BRS in future. The discretion allowed for in Clause 6 is not a get-out-of-jail-free card when it comes to consulting those who might become liable for the supplement. The levying authority will have to be able to justify any decision it takes not to consult those who might become liable for the supplement. For example, where properties with a rateable value of £50,000 are liable, it would be very difficult for the authority not to consult ratepayers whose properties had a rateable value of £49,999. The Bill as drafted gives flexibility for dealing with marginal situations—for example, determining whether it is necessary to consult those with a rateable value of £30,000 in an area where the BRS might be relatively short-term, and therefore it would be highly unlikely that such businesses would move into the category in such a short time. It enables the levying authority to take a reasonable and proportionate approach to consulting those who might become liable for the supplement. However, the amendment, by requiring authorities to consult those who might become liable for the supplement in future, runs the risk that they will have to consult absolutely anyone who has the remotest possibility of becoming liable for the supplement, lest they open themselves to a potential legal challenge. I am sure that that is not the intent of the amendment, but that is what the local authority is likely to feel obliged to do if the amendment is carried and we do not have the flexibility that we envisage in the Bill as it is presented. Amendment 23 requires levying authorities to publish the results of consultation on their initial prospectuses. Amendment 24 would require levying authorities to publish a revised initial prospectus following the consultation but before the publication of the final prospectus. Of course any consultation process on the BRS needs to be transparent, and businesses need to have confidence that their concerns and comments will be taken seriously and will be reflected in the final plans for the project. For these reasons, levying authorities will be required to publish a final prospectus. This will set out how the BRS will work and the details of the project, taking account of the comments and views expressed during the consultation. In line with best practice, the authority should also consider publishing a summary of the consultation responses, setting out how the project has changed as a result. I emphasise best practice. We are certainly prepared to emphasise in guidance what we expect to see in best practice and levying authorities should follow that. However, to require a revised initial prospectus in all cases surely goes further than what will be needed in many cases, resulting in unnecessary delay and excessive bureaucracy. Instead of taking a standardised approach, which in many cases may not be appropriate, we should give levying authorities the flexibility to decide what is right for their area and for their proposal. That is the basis of the Bill as it stands. I am grateful to the noble Baroness for having identified issues that need serious consideration. I know that they reflect discussions held in Committee. I merely wish to emphasise that we considered these matters in drafting the Bill. We are seeking to avoid being overly prescriptive where we do not need to be, but we certainly agree—as has been emphasised this evening—that best practice on consultation needs to be followed. We are happy to signal in guidance that levying authorities should indeed refer to existing best practice. I hope that on that basis the noble Baroness will feel sufficiently reassured to withdraw the amendment.