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Business Rate Supplements Bill

My Lords, at this stage in the evening, one takes solace where one can, and I take a great deal of solace from the noble Baroness, Lady Hamwee, who, in very succinct terms, has indicated why she cannot support the amendments, and, of course, neither can I. I will deal with Amendment 35 separately. The interaction between business improvement districts and BRSs has generated a fair degree debate and passion, both in this House and in the other place. I do not for one moment underestimate the concerns that have been raised on this issue and I understand the force with which the noble Lord presented his amendments and the articulate way in which he sought to advance them. However, we do not think that having an automatic offset is the right way forward. It is worth taking a step back and thinking about what we are trying to deliver here. This Bill provides a real opportunity for local authorities to work together with businesses to develop proposals that will enhance the economic development of local areas. This is not about diktats from Whitehall; it is about devolving responsibility to the local level. It will be for the local authorities, working in partnership with businesses in their area, to put forward proposals in their prospectus. Provided local authorities can make the link to economic development, we want them to use this new power flexibly to meet the specific needs of their area. We have set an overall limit of 2p but we are giving authorities the flexibility to decide whether the levy should be set at 0.5p, 1p, or 2p. They can decide whether to offer more generous safeguards to businesses. They can, if they wish, choose to set the threshold for liability above £50,000—for instance, at £65,000. They can decide to exclude or include empty properties in their BRS proposals. All this represents the fact that flexibility is at the heart of the Bill. It would be totally inconsistent to impose a requirement on levying authorities to have an automatic offset for those paying BID levies. It would be equally illogical for the automatic offset to apply in every case except for the Crossrail project. I heard what the noble Lord had to say about his Amendment 35, but the Bill is clear that it should be left to the Mayor to decide whether to have an offset. Surely that is the simplest and most consistent way of going about it. I understand the arguments for an automatic offset, but the noble Lord will recognise from the debates I have outlined here and elsewhere that he does not command a universal view. We have heard from those in the BID sector itself who do not favour this approach. It would be unwise and irresponsible to ignore those views. The Bill is right to say that levying authorities can choose to do it, if appropriate. It is for the local authorities to make their decisions. The noble Lord valiantly pressed an issue which, I recognise, has a degree of support, although he suggested that, with Crossrail and the mayor, there is not that support. The other side of the case is at least as strong and our concern in the Bill is to maintain for local authorities—they will have to take the initiative, nothing is imposed on them; if they do not take initiatives, none of these projects go forward—the maximum flexibility for them to make the choice. That must be the right strategy, and I hope that the noble Lord is at least persuaded enough to withdraw his amendment.