Session 2014 - 15
Internet Publications
Other Bills before Parliament


 
 

Public Bill Committee:                               

331

 

, continued

 
 

This amendment commences the power to make regulations under the new clause inserted by

 

amendment NC1 on Royal Assent (so it is treated in the same way as the power to make regulations

 

under clause 4).

 

Matthew Hancock

 

Jo Swinson

 

Clause  148,  page  132,  line  22,  at end insert—

 

“( )    

in Part 5, section (Funding for free of charge early years provision);”

 

Member’s explanatory statement

 

This amendment provides that NC7 will come into force on Royal Assent.

 

Matthew Hancock

 

Jo Swinson

 

Clause  148,  page  132,  line  40,  leave out sub-paragraph (iii)

 

Member’s explanatory statement

 

This amendment removes the provision that would bring clause 30 into force two months after

 

Royal Assent. Instead, it will be brought into force by commencement regulations (so that it can

 

come into force at the same time as regulations made under amendments 22 and 23).

 

Matthew Hancock

 

Jo Swinson

 

Clause  148,  page  133,  line  12,  leave out “and 79” and insert “to (Shadow directors:

 

provision for Northern Ireland)”

 

Member’s explanatory statement

 

This amendment provides that the new clause inserted by amendment NC6 will come into force 2

 

months after Royal Assent.

 

Matthew Hancock

 

Jo Swinson

 

Clause  148,  page  133,  line  21,  at end insert—

 

“(3A)    

Section (Exclusion of home businesses from Part 2 of the Landlord and Tenant

 

Act 1954) as it applies in Wales comes into force on such day as the Welsh

 

Ministers may by regulations appoint.”

 

Member’s explanatory statement

 

This amendment gives the Welsh Ministers the power to bring new clause NC11 into force in

 

relation to Wales.

 

New clauses

 

Matthew Hancock

 

Jo Swinson

 

NC1

 

To move the following Clause—

 

“Small and medium sized businesses: information to finance platforms

 

(1)    

Where—


 
 

Public Bill Committee:                               

332

 

, continued

 
 

(a)    

a small or medium sized business has applied to a designated

 

bank for a loan or other credit facility, and

 

(b)    

the application has been unsuccessful,

 

    

the Treasury may by regulations impose a duty on the bank to provide

 

specified information about the business to designated finance platforms.

 

(2)    

The regulations—

 

(a)    

must provide that the duty only applies where the business to

 

which the information relates agrees to its information being

 

provided to the designated finance platforms;

 

(b)    

may require a bank—

 

(i)    

to seek the agreement of a business for the purposes of

 

paragraph (a);

 

(ii)    

to ask the business for any of the specified information

 

that the bank does not already have;

 

(iii)    

to provide the information to the finance platforms

 

within a specified time period.

 

(3)    

The regulations may make further provision about the duty in subsection

 

(1), which may in particular include provision about—

 

(a)    

the types of loans and credit facilities that trigger the duty,

 

(b)    

the circumstances in which an application is to be considered

 

unsuccessful, and

 

(c)    

the finance platforms to which information must be provided.

 

(4)    

Where a finance platform has received information by virtue of

 

subsection (1), the Treasury may by regulations—

 

(a)    

impose a duty on the finance platform to provide specified

 

information to all finance providers requesting access to the

 

information, and

 

(b)    

impose a duty on the finance platform to provide specified

 

information about a particular business to a finance provider

 

where—

 

(i)    

the finance provider has requested information about the

 

business, and

 

(ii)    

the business has agreed to its information being provided

 

to the finance provider.

 

(5)    

Information specified for the purposes of subsection (4)(a) must be in

 

such a form that no individual business, and no person associated with the

 

business, can be identified.

 

(6)    

The regulations may provide that the duty in subsection (4)(a) or (b) does

 

not apply unless—

 

(a)    

the finance provider or business agrees to the finance platform’s

 

terms and conditions;

 

(b)    

the finance provider complies with specified requirements about

 

the use and disclosure of the information.

 

(7)    

The regulations may make further provision about the duties in

 

subsection (4)(a) and (b), including in particular provision—

 

(a)    

requiring the finance platform to provide the information within

 

a specified time period;

 

(b)    

setting out how a request by a finance provider must be made to

 

a finance platform;


 
 

Public Bill Committee:                               

333

 

, continued

 
 

(c)    

setting out how a business may indicate agreement for the

 

purposes of subsection (4)(b)(ii);

 

(d)    

about the time period for which information must be kept by the

 

finance platform;

 

(e)    

about the removal of information from the finance platform.

 

(8)    

The regulations may make provision—

 

(a)    

prohibiting finance platforms from charging fees to small and

 

medium sized businesses, or

 

(b)    

permitting finance platforms to charge fees to small and medium

 

sized businesses.

 

(9)    

The regulations must make provision for the designation of banks and

 

finance platforms by the Treasury, and the regulations may in particular

 

provide for—

 

(a)    

conditions that must be met for a bank or finance platform to be

 

designated;

 

(b)    

considerations that the Treasury may take into account before

 

deciding whether to designate a bank or finance platform;

 

(c)    

the Treasury to consider the advice of another person before

 

making a designation;

 

(d)    

the procedure for designating a bank or finance platform;

 

(e)    

how the list of designated banks and finance platforms must be

 

published;

 

(f)    

the revocation of a designation.

 

(10)    

In this section “specified” means specified or described in the

 

regulations.”

 

Member’s explanatory statement

 

This new clause enables the Treasury to make regulations requiring certain banks to pass

 

information about small and medium sized businesses which make unsuccessful applications for

 

credit to online platforms, and requiring those platforms to share the information with finance

 

providers. The provision of information would be subject to the agreement of the business.

 


 

Matthew Hancock

 

Jo Swinson

 

NC2

 

To move the following Clause—

 

“Sections 4 to 5: interpretation

 

(1)    

For the purposes of sections 4 to 5, a business is a small or medium sized

 

business if—

 

(a)    

it has an annual turnover of less than £25 million,

 

(b)    

it carries out commercial activities,

 

(c)    

it does not carry out regulated activities as its principal activity,

 

and

 

(d)    

it is not owned or controlled by a public authority.

 

    

Regulations under those sections may make further provision for the

 

purposes of determining which businesses they apply to (including


 
 

Public Bill Committee:                               

334

 

, continued

 
 

provision about the calculation of turnover and the determination of

 

control).

 

(2)    

In sections 4 to 5 and this section—

 

“designated bank” means a bank that has been designated by the Treasury

 

by virtue of section 4(7) or (Small and medium sized businesses:

 

information to finance platforms)(9);

 

“designated credit reference agency” means a credit reference agency that

 

has been designated by the Treasury by virtue of section 4(7);

 

“designated finance platform” means a finance platform that has been

 

designated by the Treasury by virtue of section (Small and medium sized

 

businesses: information to finance platforms)(9);

 

“finance platform” means a person that provides a service for the exchange

 

of information between finance providers and businesses that require

 

finance;

 

“finance provider” means a body corporate that lends money or provides

 

credit, or arranges or facilitates the provision of debt or equity finance, in

 

the course of a business (and regulations under sections 4 and (Small and

 

medium sized businesses: information to finance platforms) may make

 

further provision for the purpose of determining which finance providers

 

they apply to);

 

“public authority” has the same meaning as in the Freedom of Information

 

Act 2000 (see section 3 of that Act);

 

“regulated activities” has the same meaning as in the Financial Services and

 

Markets Act 2000 (see section 22 of that Act);

 

“subordinate legislation” has the same meaning as in the Interpretation Act

 

1978 (see section 21 of that Act).

 

(3)    

The Treasury may by regulations change the figure for the time being

 

specified in subsection (1)(a).

 

(4)    

Before making regulations under subsection (3) the Treasury must

 

consult such persons as they consider appropriate.

 

(5)    

Regulations under subsection (3) are subject to negative resolution

 

procedure.”

 

Member’s explanatory statement

 

This new clause defines terms used in clauses 4, 5, the new clause in amendment NC1 and this new

 

clause.

 


 

Matthew Hancock

 

Jo Swinson

 

NC3

 

To move the following Clause—

 

“Small and micro business regulations: further provision

 

(1)    

The small and micro business regulations may make provision—

 

(a)    

about the calculation of the headcount of staff, turnover and

 

balance sheet total of an undertaking, including provision about

 

the period (“assessment period”) in respect of which they are to

 

be calculated;


 
 

Public Bill Committee:                               

335

 

, continued

 
 

(b)    

for the headcount of staff, turnover and balance sheet total, or a

 

proportion of such, of any undertaking which satisfies such

 

conditions as may be prescribed in relation to another

 

undertaking (the “principal undertaking”) to be treated as part of

 

the principal undertaking’s headcount of staff, turnover and

 

balance sheet total.

 

(2)    

Conditions which may be prescribed under subsection (1)(b) include, in

 

particular, conditions relating to—

 

(a)    

the extent of ownership (whether direct or indirect) of one

 

undertaking by one or more other undertakings;

 

(b)    

the degree of control exercised (whether directly or indirectly)

 

by one or more undertakings over another.

 

(3)    

The small and micro business regulations may make provision about—

 

(a)    

the assessment period or periods in respect of which an

 

undertaking must meet the small business size conditions or the

 

micro business size conditions in order to be a small business or

 

(as the case may be) micro business;

 

(b)    

the circumstances in which an undertaking which has been

 

established for less than a complete assessment period is to be

 

regarded as meeting the small business size conditions or the

 

micro business size conditions.

 

(4)    

Provision made by virtue of subsection (3) may, in particular, provide

 

that—

 

(a)    

an undertaking is a small business or a micro business if it meets

 

the relevant size conditions in respect of each of its two most

 

recent assessment periods;

 

(b)    

where there has been only one complete assessment period since

 

an undertaking was established, the undertaking is a small

 

business or a micro business if it meets the relevant size

 

conditions in respect of that period;

 

(c)    

an undertaking which is a small business or a micro business

 

does not cease to be such unless it fails to meet the relevant size

 

conditions in respect of two consecutive assessment periods.

 

(5)    

The small and micro business regulations may make provision for one

 

undertaking (“undertaking A”) which satisfies such conditions as may be

 

prescribed in relation to another undertaking (“undertaking B”), to be

 

treated as being undertaking B (whether or not undertaking B is still in

 

existence) for such purposes as may be prescribed.

 

(6)    

Conditions which may be prescribed under subsection (5) include, in

 

particular, conditions relating to—

 

(a)    

the transfer of a business from undertaking B to undertaking A;

 

(b)    

the carrying on by undertaking A of a business on undertaking B

 

ceasing to carry on the activities, or most of the activities, of

 

which the business consists in consequence of arrangements

 

involving both undertakings;

 

(c)    

the existence of some other connection between undertaking A

 

and undertaking B.

 

(7)    

The purposes which may be prescribed under subsection (5) include, in

 

particular—


 
 

Public Bill Committee:                               

336

 

, continued

 
 

(a)    

determining the date on which undertaking A was established

 

(and so the number of assessment periods there have been since

 

it was established);

 

(b)    

determining which periods are assessment periods in respect of

 

undertaking A;

 

(c)    

calculating the headcount of staff, turnover and balance sheet

 

total of undertaking A.

 

(8)    

The small and micro business regulations may provide that an

 

undertaking of such description as may be prescribed is not a small

 

business or a micro business even if it falls within the relevant definition.

 

(9)    

In this section—

 

“micro business size conditions”, “small business size conditions” and

 

“undertaking” have the same meanings as in section 30;

 

“prescribed” means prescribed in the small and micro business regulations.”

 

Member’s explanatory statement

 

This new clause sets out the permitted content of regulations under amendments 22 and 23

 

supplementing the definitions of “small” and “micro” business. This includes provision about

 

calculating staff headcount, turnover and balance sheet totals, aggregating data of connected

 

undertakings, assessment periods, anti-avoidance and exceptions.

 


 

Matthew Hancock

 

Jo Swinson

 

NC11

 

To move the following Clause—

 

“Exclusion of home businesses from Part 2 of the Landlord and Tenant Act 1954

 

(1)    

Part 2 of the Landlord and Tenant Act 1954 (security of tenure for business,

 

professional and other tenants) is amended as follows.

 

(2)    

In section 23(4) (tenancies to which Part 2 applies) at the beginning insert

 

“Subject to subsection (5),”.

 

(3)    

After section 23(4) insert—

 

“(5)    

Where the tenant’s breach of a prohibition (however expressed) of use for

 

business purposes which subsists under the terms of the tenancy and

 

extends to the whole of that property consists solely of carrying on a

 

home business, this Part of this Act does not apply to the tenancy, even

 

if the immediate landlord or the immediate landlord’s predecessor in title

 

has consented to the breach or the immediate landlord has acquiesced in

 

the breach.

 

(6)    

In subsection (5) “home business” has the same meaning as in section

 

43ZA.”

 

(4)    

After section 43 (tenancies excluded from Part 2), insert—

 

“43ZA

Further exclusion of home business tenancies from Part 2

 

(1)    

This Part of this Act does not apply to a home business tenancy.

 

(2)    

A home business tenancy is a tenancy under which—

 

(a)    

a dwelling-house is let as a separate dwelling,


 
 

Public Bill Committee:                               

337

 

, continued

 
 

(b)    

the tenant or, where there are joint tenants, each of them, is an

 

individual, and

 

(c)    

the terms of the tenancy—

 

(i)    

require the tenant or, where there are joint tenants, at

 

least one of them, to occupy the dwelling-house as a

 

home (whether or not as that individual’s only or

 

principal home),

 

(ii)    

permit a home business to be carried on in the dwelling-

 

house, or permit the immediate landlord to give consent

 

for a home business to be carried on in the dwelling-

 

house, and

 

(iii)    

do not permit a business other than a home business to

 

be carried on in the dwelling-house.

 

(3)    

The terms of a tenancy permit the carrying on of a home business if they

 

permit the carrying on of a particular home business, a particular

 

description of home business or any home business.

 

(4)    

A “home business” is a business of a kind which might reasonably be

 

carried on at home.

 

(5)    

A business is not to be treated as a home business if it involves the supply

 

of alcohol for consumption on licensed premises which form all or part

 

of the dwelling-house.

 

(6)    

The appropriate national authority may by regulations prescribe cases in

 

which businesses are, or are not, to be treated as home businesses.

 

(7)    

Regulations under this section—

 

(a)    

may include transitional or saving provision,

 

(b)    

may make different provision for different purposes,

 

(c)    

are to be made by statutory instrument which—

 

(i)    

in the case of an instrument made by the Secretary of

 

State, is subject to annulment in pursuance of a

 

resolution of either House of Parliament, and

 

(ii)    

in the case of an instrument made by the Welsh

 

Ministers, is subject to annulment in pursuance of a

 

resolution of the National Assembly for Wales.

 

(8)    

For the purposes of this section, a dwelling-house which is let for mixed

 

residential and business use is capable of being let as a dwelling.

 

(9)    

If, under a tenancy, a dwelling-house is let together with other land, then,

 

for the purposes of this section—

 

(a)    

if the main purpose of the letting is the provision of a home for

 

the tenant, the other land is to be treated as part of the dwelling-

 

house, and

 

(b)    

if the main purpose of the letting is not as mentioned in

 

paragraph (a), the tenancy is to be treated as not being one under

 

which a dwelling-house is let as a separate dwelling.

 

(10)    

In this section—

 

“the appropriate national authority” means—

 

(a)    

in relation to England, the Secretary of State, and

 

(b)    

in relation to Wales, the Welsh Ministers;

 

“dwelling-house” may be a house or part of a house;


 
previous section contents continue
 

© Parliamentary copyright
Revised 4 November 2014