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Business Rate Supplements Bill

My Lords, Amendment 36 stands in my name and that of my noble friend Lady Hamwee. I have already declared my interest but I think that I should make it specifically clear here. I am a member of the executive—known elsewhere as the cabinet—in a London borough council which will be directly affected by these proposals. The purpose of the amendment is to make it absolutely clear and beyond doubt in the Bill that the subsection in Clause 22 that refers to the costs of collection or recovery also includes the set-up costs—the costs of implementing this procedure. As has already been said, London borough councils are the billing authorities and the GLA is the levying authority. We know that if and when the Bill is enacted, as I am sure it will be, London borough councils will be billing within a very short space of time. Indeed, the president of London Councils, the noble Lord, Lord Jenkin of Roding, has already made clear the considerable anxiety—certainly not unwillingness; on the whole we welcome this—in the organisation about the very short timescale for implementing all this and also about the additional costs of doing so. Most London borough councils are what are called "floor authorities"; in other words, although their grant entitlement may increase, the actual money that they receive will not. They will therefore be under particularly great financial pressure in the coming years, given the financial outlook, and that can only increase anxiety concerning the costs that will be incurred. It is stated in the Bill, and reasonably so, that the costs of collection or recovery will be met from the levy raised, but it is not clear—and we want it to be made clear now—that the initial costs, which will probably be quite considerable, in setting up and initiating this proposal will also be met in that way. That can be made clear beyond doubt by including this amendment in the Bill. A further issue arises. There may well be, let us say, differences of opinion between the levying authority—in this case, the GLA—and London borough councils collectively or even individually as to what are reasonable costs either of recovery and collection or, perhaps even more likely, of setting up the process. How does the Minister foresee those differences ultimately being resolved? I am sure he will say that with good will they should be resolved between the levying authority and the billing authorities. Of course that is the case, but I think that those of us who are realistic know that that is not always achievable. Does he foresee any role for the Government in quickly resolving any outstanding disputes about those additional costs? I hope that the Minister can give us some comfort on this. There is considerable anxiety among London councils about the very short timescale for resolving all these issues, for carrying out the implementation and for recovering in full all the costs involved in so doing. In moving this amendment, I have spoken specifically and exclusively about London because we know, without doubt, that London authorities will be the pathfinders for this. It will happen in London before it happens anywhere else. They are pathfinders, the only pathfinders. It will apply, in due course, to all other parts of the country that find themselves in a position of having levying authorities that are not also the billing authorities. I hope that the Minister will feel able to accept this amendment and, on that note of optimism, I beg to move.