Mr Andrew Turner (Isle of Wight, Conservative)

It would be out of order if I prolonged the debate on the previous two clauses, but this clause talks about the commencement of the BID arrangements. The Minister has just referred to the local authority only having the power of veto between the ballot on the BID and the commencement of the arrangements. Clearly the local authority's power depends on the extent of the period available between the ballot on the BID and the commencement of the arrangements. I am not sure whether the clause allows a reasonable period for the local authority to consider the matter and for local elections and the conclusion of a consultation on its local strategy to take place before the implementation of the BID arrangements. Does it merely provide for the implementation of such administrative arrangements as are necessary? Indeed, once we start putting those administrative arrangements in place, is that a signal that the BID arrangements have begun to be put in place?

Surely the BID arrangements would be put in place from the moment that the results of the ballot were announced—rather like the arrangements for MPs. It would be difficult for the Minister to identify a period during which the arrangements had not commenced. Perhaps the clause clarifies when the arrangements commence, but from my initial reading I have not found that easy to identify. I am becoming increasingly concerned about why the local authority should require a power of veto after the ballot. If the local authority is so concerned that its community strategy or policies would be inhibited by the BID arrangements, why have those arrangements reached the stage of a ballot? I appreciate that I am not allowed to go over old ground. Will the Minister explain when the BID arrangements commence?

Mr Edward Davey (Kingston & Surbiton, Liberal Democrat)

I rise partly to help the hon. Member for Isle of Wight and also to place on the record that in Kingston we hope to have a BID up and running by this time next year. There may be a ballot in Kingston for a BID in the coming autumn/winter. As I understand it, although the BID proposals in Kingston have not yet been published, according to subsection (3) the day on which the BID proposals come into force has to be set out and arranged as part of the proposals themselves. It is up to local discretion. It is not on the day or the day after the vote has taken place. I hope that that explains the matter to the hon. Gentleman.

Mr Andrew Turner (Isle of Wight, Conservative)

In effect, it means that the local authority would be prevented from exercising its veto, because the BID proposals could include a provision that the arrangements should come into effect the moment the ballot result is announced.

Mr Edward Davey (Kingston & Surbiton, Liberal Democrat)

That is not my understanding of the veto arrangements. Perhaps the hon. Gentleman will intervene to explain why his understanding is different. My understanding from debates within the local business community in Kingston upon Thames is that they will leave a short period after the vote takes place to make the necessary legal arrangements for incorporation and so on, but because they are practical business people they want to push ahead with setting up the business improvement district to derive the benefits from it.

They want to ensure that the benefits they seek to make Kingston a cleaner, safer, well-maintained and better-promoted town centre are achieved as early as possible. I am pleased with the way the Government have phrased clause 55. It leaves discretion for the local BID proponents to decide exactly when the commencement of the BID arrangements suits them in order to deal with the practical issues that they will face. I would not want to see it amended, and I hope that it will be carried.

Mr Christopher Leslie (Parliamentary Secretary, Cabinet Office; Shipley, Labour)

Under clause 55, when a BID proposal is approved by a ballot, the local billing authority must ensure that the BID arrangements come into force on the day specified in the BID proposals. The hon. Member for Kingston and Surbiton (Mr. Davey) was right to point out that there will be an opportunity for transition between the proposals and the

arrangements. That is the point at which a veto can be exercised.

If a BID is vetoed, the BID arrangements cannot come into force unless the Secretary of State allows an appeal against the veto. In that case, the BID arrangements will come into force on the day determined by the Secretary of State. That day cannot be before the day specified in the BID proposals, and before determining which day it should be, the Secretary of State must consult the billing authority and representatives of the ratepayers. I appreciate the question asked by the hon. Member for Isle of Wight about whether the arrangements could come into force on the day after a ballot. That is an especially interesting point. I have made inquiries, and it appears that it is possible in theory, if unlikely. However, they could and do come into effect on the date specified in the proposals. I will re-examine the guidance, but it suggests that there should be a reasonable period of time between proposals, the date of the result of the ballot and the date when the arrangements come into force to ensure that all parties have sufficient opportunity to consider whether they need to exercise any powers under the provisions.

Question put and agreed to.

Clause 55 ordered to stand part of the Bill.