In Committee, the Minister said that it was not a half-and-half policy; he said that businesses that were most important for rural villages would receive mandatory relief, but less important businesses would not, but that was not the half-and-half aspect to which I was referring. I was making the point that the Government cannot make up their mind about the best way to give rate relief, even to those businesses that they consider to be the most important in rural areas—small post offices and general stores. They cannot decide whether rate relief should be given on a mandatory or discretionary basis. I see no logic behind this half-and-half system, where some of the relief can be left up to the discretion of the local authority and some of it has to be decided here in Westminster.
The one criticism of the amendments that has been made, and which may, if not properly understood, concern some smaller local authorities that may benefit from rate relief, is that some of them simply would not have the money to give discretionary relief. It is clear that the Government will set aside the money in their future Budgets as soon as the rate relief system is introduced. That money can be distributed in a number of ways. If the mandatory part of the Bill were removed, it would be possible for the Government to decide, in next year's rate support settlement, that some of that money should be used directly to enhance rate support for those local authorities that are expected to pass on rate relief on a discretionary basis. If that is done, there is no reason to assume that any local authority will be worse off as a result of using discretionary powers. The discretionary powers will be properly available to them, as will the money to use them. Therefore, the small businesses that need the rate relief will receive it.
I firmly believe that local people know best where to spend the money. I was happy to hear that that belief was strongly supported by two Conservative Members who spoke on new clause 1. If councils believe that the right way to use the money that they will have in future is to give discretionary relief to local businesses, they will do so. If they do not believe that, they should have the right to choose how best that money should be spent. Some authorities may have greater needs for the money than rate relief for small businesses. It is their choice; they are in the best position to know. Some local authorities may give much more discretionary relief than the Government currently envisage.
By making part of the rate relief mandatory, the Government are showing that they do not trust local government to support vital rural businesses in the way that all hon. Members would like them to be supported. It is a case of, "We know better than them." The Government are saying that they know better than local authorities where the rate relief is needed, but that is not true, and I was happy to have the support of two Conservative Members on that issue. The amendments provide a touchstone to show the commitment of parties in the House to the principle of subsidiarity, of devolving powers to the lowest level, and of trusting local authorities to take the right decisions for their people because they are in the best position to make the right decisions. Because the amendments go to the very heart of the principle of subsidiarity, I shall do everything I can to force a Division on them tonight.