Clause 1 - Mandatory rate relief onformer agricultural premises

Part of Rating (Agricultural Premises and Rural Shops) Bill – in a Public Bill Committee at 12:00 pm on 8 May 2001.

Alert me about debates like this

Photo of Hilary Armstrong Hilary Armstrong Minister of State (Local Government and Housing), Department of the Environment, Transport and the Regions, Minister of State (Department for Environment, Transport and the Regions) (Local Government) 12:00, 8 May 2001

I do not think that we want to debate that matter further now. The hon. Gentleman knows that it takes time to consult on and draw up legislation, while ensuring that the resources of the Parliamentary Counsel are used effectively. We sought to get the Bill through the House quickly so that there can be immediate relief.

The amendment would extend the period of relief to five years from the date when a hereditament first received relief, even if that extended beyond the five-year life of the scheme. However, the Bill seeks to meet a specific need--one that is clear now but may not always be. The scope for diversification is finite. We are providing a scheme that applies for a fixed five-year period that will be known to all ratepayers and so will be clear.

Hon. Members know that it is not only in local government finance that further proposals are being made. Everyone knows that we shall have to consider the future organisation of farming. To introduce a measure such as the amendment would, in many senses, suggest that everything would continue for some time. The impetus to recognise a new and different system would be curtailed if we accepted the amendment.

We have provided a power to extend the scheme if it is still needed in five years' time. That would need to be considered with our proposal for a rate relief scheme for all small businesses in England, which was in the local government finance Green Paper. If implemented, it would provide mandatory rate relief to all small businesses covered by the farm diversification scheme in the Bill, as well as those not covered by it.

The Government must look at the issue carefully. It is important that we rationalise the number of relief schemes, how people apply for relief and what they know is available. Confusion about what people might be eligible for is a problem. I have been to several authorities and talked to farmers and others involved in, for example, the tourism industry, including those offering bed and breakfast. Many of them are confused as to what they are entitled to receive, so the case for rationalisation is fairly strong.

I understand the arguments made by the hon. Member for Somerton and Frome, but he will understand that if I agree to the amendment, I would seal in law for more than five years something that would make that rationalisation even more difficult. The Government may have to extend the relief because agreement may not be reached elsewhere. However, to do so today would make it much more difficult in the medium term to sort such matters out in a rational way and see the conclusion of the scheme, because it would be overtaken by a more comprehensive scheme that would enable rate payers to be much clearer about what was available. I realise that that is not what Opposition Members want, but it is the right way to proceed. I invite the hon. Member for Somerton and Frome to withdraw the amendment.