Clause 56 - Duration of BID arrangements etc
Local Government Bill
3:00 pm
Mr Christopher Leslie (Parliamentary Secretary, Cabinet Office; Shipley, Labour)
That is the question that the hon. Member for Poole (Mr. Syms) asked—whether the alterations would be significant. The clause grants the Secretary of State the power to make regulations regarding the alteration or termination of BID arrangements. We would expect BID arrangements to contain rules on how the business improvement district could be wound up prematurely if the parties to the BID so decided, and the regulations will be general rather than for specific BID proposals.
Again, we want to ensure that safeguards can be put in place, which is the purpose of clause 56 providing the Secretary of State with the ability to make alterations or terminations. They will provide a fall-back to allow a BID to be altered or terminated early if BID members decide to do that in the light of experience but the specific BID arrangements contain insufficient provisions. The regulations could provide a mechanism to deal with such matters as outstanding
contracts or assets that a BID may have when it dissolves.
In setting out the regulations, we will make it clear that we do not envisage the Secretary of State using them to intervene directly in the operation of a business improvement district. Alterations and terminations will take place only in rare and exceptional circumstances, and the presumption will always be the protection of the ratepayers by ensuring that large and unforeseen burdens do not fall on them. It may be helpful for me to circulate an indication of our policy intent on the use of the regulations to give a clearer and more in-depth picture of how we envisage using the regulations, if at all. That may also help enlighten any debate on Report.