Clause 10 - Non-money receipts
Local Government Bill
3:30 pm
Mr Philip Hammond (Runnymede and Weybridge, Conservative)
I beg to move amendment No. 38, in
clause 10, page 5, line 2, at end add—
'( )(a) No regulation may be made under this section in respect of a disposal the consideration for which is wholly in the form of housing nomination rights.
(b) Regulations under this section in respect of disposals consideration for which consist partly of money payable to the authority or consideration other than housing nomination rights and partly of housing nomination rights may not apply section 9 in respect of that part of the consideration which consists of housing nomination rights.'.
It is necessary to look at regulation 16 in connection with this. For some reason, the regulations do not run in a chronological sequence through the Bill so regulation 16 is made under the powers given to the Secretary of State in clause 10. The explanatory notes make it clear that the intention of the clause is to provide that where a local authority makes a disposal in kind, it shall be treated as having made a disposal for money, the money being the equivalent value of the consideration in kind. If a disposal is made under value, it will be treated as having been made for money at the full value.
That bites most obviously and immediately where local authorities quite properly dispose of land to a registered social landlord at an undervalue and receive in exchange nomination rights in respect of the housing that will be built on that land. If I
understand the Bill correctly, such a disposal will give rise to a notional receipt by the authority, which will be subject to the Government's levying regime under clause 11. That seems wholly inappropriate and contrary to Government policy.
Mr. Raynsford indicated assent.