Part of Non-Domestic Rating Bill - Report – in the House of Lords at 5:00 pm on 19 September 2023.
My Lords, I shall speak also to Amendments 9, 10 and 11 at the same time. All of these cover slightly different things, and I will try and skate through fairly quickly. In each case, I am simply looking for some reassurance from the Government Bench that these matters are in focus and that certain things will be done.
The first is the question of disclosure of information between the Valuation Office and a ratepayer’s surveyor. It may well be that practices have grown up because of these rather unsatisfactory, unqualified surveyors, who have been going around for some time. There are many fewer of them than there used to be. It may well be that the Valuation Office has somehow built a defensive carapace against this, faced with representations that might not have been all they were cracked up to be. But at the end of the day, there is this question, which the noble and learned Lord, Lord Etherton, will understand, of equality of arms: there has to be some common sharing of information and data relating to the value of the hereditament, otherwise negotiations really are in a pretty pickle and, in many cases, will get into worse level of dispute than is absolutely necessary.
As my explanatory statement says, Amendment 8 would reinforce the need for a reciprocal duty of disclosure on the valuation office by making disclosure mandatory, except for the exceptions in sub-paragraph (4), which is basically a data protection exception. I would very much appreciate comment that this will happen and there will be guidance within the Valuation Office Agency to deal with this—to improve transparency and to reinforce confidence.
Amendments 9 and 10 relate to the question of an annual return or confirmation requirement on ratepayers, which is a new provision that the Government are seeking to insert. I had to check my notes from the previous stage of the Bill, but according to the information I had, this would result in some 700,000 hereditaments having to make an additional return or being at risk of making an additional return. The point that was made to me, and that I continue to make, is that this is potentially excessive. In discussions with the Bill team and the Minister, we were given reassurances that there would be piloting and that they would not roll this out unless it was running smoothly and the online system for reporting was robust. I would simply like to have reassurance on that point and that the results of the pilot will be a matter of discussion with stakeholders, so that we do not just have a one-sided arrangement on that. The truth of the matter is that many ratepayers do not understand the terminology because they are traders; they are not people who are involved in getting to understand what a “hereditament” is—as I may have said at an earlier stage of the Bill, it is not a word easily conjured with. There is a great deal that they do not understand about making returns as they are at the moment, so there is a need for a process of general simplification. That deals with Amendments 9 and 10, which are connected.
Amendment 11 relates to something slightly different, which is consequential on this whole reporting business, and that is that, when a business ratepayer advises the Valuation Office Agency that there has been a change, the matter is dealt with promptly, whether it is a reduction or an increase. An increase obviously affects the income from the rating scheme as a whole, but a reduction is something that directly affects the ratepayer. At the moment, I understand there is still quite a considerable backlog within the Valuation Office Agency. The concern is that, unless the backlog is cleared and unless there is better funding and resourcing within the Valuation Office Agency, these things will be held up. The idea here is that ratepayers in particular should not receive retrospective increases in their rating liabilities unless the valuation office acts promptly on receipt of ratepayer-provided information. This is to give an incentive to the valuation office to make a prompt approach and deal with it, but it is all to do with speed of turnaround of necessary changes. Not everything that is advised to the Valuation Office Agency will be relevant, but quite a lot of it may be. If we are going to get into this new era of reporting 60 days after an event has happened and at the end of the year, then we need some reciprocity in relation to that. That is the gist of those amendments.
I just add that, although the Minister has not spoken to them yet, I support government Amendments 12 and 13. They are necessary and appropriate. I have no real views on Amendment 20 either way; it is an administrative consequence of other amendments. I beg to move.