Clause 49 - BID Revenue Account
Local Government Bill
9:15 am
Mr Christopher Leslie (Parliamentary Secretary, Cabinet Office; Shipley, Labour)
The clause imposes a duty on the billing authority responsible for collecting the BID levy to hold the revenue that it collects on behalf of the BID in an account called the BID revenue account, which is separate from the billing authority's other finances, not least to give protection to those other finances.
That will also ensure that there is clear accounting for the BID arrangements. The money raised through the BID levy will therefore be ring-fenced and may be used only for BID purposes.
The billing authority must run the BID revenue account in accordance with ''proper practices'', which are defined in clause 21 and are the accounting practices to be followed by local authorities, including any specifically provided for in legislation. Therefore, if hon. Members were wondering about the particular rules that govern the revenue account arrangements, clause 21 will apply in the usual way to their operation.
Clause 49 gives the Secretary of State power to make further regulations relating to the BID revenue account, should that prove necessary. The hon. Member for New Forest, West asked about that. Those arrangements are set out in the guidance. In setting up the BID system, we want to be as flexible as we can in the arrangements set out. Experience over time may well show that we need to take certain lessons into account. Flexibility to make further regulations is necessary so that we can make changes to respond to any issues that crop up. We envisage that such issues will be of a technical nature, relating to financial audit.
On the question of what would happen in the event of unforeseen circumstances giving rise to a deficit, I shall have to write to the hon. Member for Cotswold. I need to find out more on that and shall provide him with information later. I shall ensure that I circulate that information to the rest of the Committee.