Enterprise Bill (HC Bill 112)

(b) the conduct of the insurer in handling the claim may be a
relevant factor in deciding whether that term was breached and,
if so, when.

(5) Remedies (for example, damages) available for breach of the term
5implied by subsection (1) are in addition to and distinct from—

(a) any right to enforce payment of the sums due, and

(b) any right to interest on those sums (whether under the contract,
under another enactment, at the court’s discretion or
otherwise).”

(2) 10In section 22 of that Act (application etc of Parts 2 to 5), after subsection (3)
insert—

“(3A) Part 4A applies only in relation to contracts of insurance entered into
after that Part has come into force, and variations to such contracts.”

23 Contracting out of the implied term about payment of claims

(1) 15After section 16 of the Insurance Act 2015 (contracting out: non-consumer
contracts) insert—

“16A Contracting out of the implied term about payment of claims:
consumer and non-consumer insurance contracts

(1) A term of a consumer insurance contract, or of any other contract,
20which would put the consumer in a worse position as respects any of
the matters provided for in section 13A than the consumer would be in
by virtue of the provisions of that section (so far as relating to consumer
insurance contracts) is to that extent of no effect.

(2) A term of a non-consumer insurance contract, or of any other contract,
25which would put the insured in a worse position as respects deliberate
or reckless breaches of the term implied by section 13A than the insured
would be in by virtue of that section is to that extent of no effect.

(3) For the purposes of subsection (2) a breach is deliberate or reckless if the
insurer—

(a) 30knew that it was in breach, or

(b) did not care whether or not it was in breach.

(4) A term of a non-consumer insurance contract, or of any other contract,
which would put the insured in a worse position as respects any of the
other matters provided for in section 13A than the insured would be in
35by virtue of the provisions of that section (so far as relating to non-
consumer insurance contracts) is to that extent of no effect, unless the
requirements of section 17 have been satisfied in relation to the term.

(5) In this section references to a contract include a variation.

(6) This section does not apply in relation to a contract for the settlement of
40a claim arising under an insurance contract.”

(2) In section 17(1) of that Act (the transparency requirements), after “16(2)” insert
“or 16A(4)”.

24 Additional time limit for actions for damages for late payment of insurance
claims

After section 5 of the Limitation Act 1980 insert—

“5A Additional time limit for actions for damages for late payment of
5insurance claims

(1) An action in respect of breach of the term implied into a contract of
insurance by section 13A of the Insurance Act 2015 (late payment of
claims) may not be brought after the expiration of one year from the
date on which the insurer has paid all the sums referred to in subsection
10(1) of that section.

(2) Any payment which extinguishes an insurer’s liability to pay a sum
referred to in section 13A of the Insurance Act 2015 is to be treated for
the purposes of this section as payment of that sum.”

Part 6 15Non-domestic rating

25 Disclosure of HMRC information in connection with non-domestic rating

(1) The Local Government Finance Act 1988 is amended as follows.

(2) In Part 3 (non-domestic rating), after section 63 insert—

“63A Disclosure of Revenue and Customs information

(1) 20An officer of the Valuation Office of Her Majesty’s Revenue and
Customs may disclose Revenue and Customs information to a
qualifying person for a qualifying purpose.

(2) Information disclosed to a qualifying person under this section may be
retained and used for any qualifying purpose.

(3) 25Each of the following is a “qualifying person”—

(a) a billing authority;

(b) a major precepting authority;

(c) a person authorised to exercise any function of an authority
within paragraph (a) or (b) relating to non-domestic rating;

(d) 30a person providing services to an authority within paragraph
(a) or (b) relating to non-domestic rating;

(e) the Secretary of State;

(f) the Welsh Ministers;

(g) a prescribed person.

(4) 35Each of the following is a “qualifying purpose”—

(a) enabling or assisting the qualifying person to whom the
disclosure is made, or any other qualifying person, to carry out
any functions conferred by or under this Part which are not
functions of the Secretary of State or the Welsh Ministers;

(b) 40enabling or assisting the Secretary of State or the Welsh
Ministers to carry out functions conferred by or under section
53 or 54 (central non-domestic rating), or by or under Schedule
9 so far as relating to central non-domestic rating lists;

(c) any other prescribed purpose relating to non-domestic rating.

(5) In this section—

• “prescribed” means—

  (a)

  in relation to England, prescribed by regulations made
  5by the Secretary of State, and

  (b)

  in relation to Wales, prescribed by regulations made by
  the Welsh Ministers;

• “Revenue and Customs information” means information held as
  mentioned in section 18(1) of the Commissioners for Revenue
  10and Customs Act 2005.

(6) Regulations under this section may only be made with the consent of
the Commissioners for Her Majesty’s Revenue and Customs.

63B Restrictions on onward disclosure of Revenue and Customs
information

(1) 15Information disclosed under section 63A or this section may not be
further disclosed unless that further disclosure is—

(a) to a qualifying person for a qualifying purpose,

(b) for the purposes of the initiation or conduct of any proceedings
relating to the enforcement of any obligation imposed by or
20under this Part of this Act,

(c) in pursuance of a court order,

(d) with the consent of each person to whom the information
relates, or

(e) required or permitted under any other enactment.

(2) 25Information may not be disclosed under subsection (1)(a) to a
qualifying person within section 63A(3)(c), (d), (e), (f) or (g) except with
the consent of the Commissioners for Her Majesty’s Revenue and
Customs (which may be general or specific).

(3) Information disclosed to a qualifying person under this section may be
30retained and used for any qualifying purpose.

(4) A person commits an offence if the person contravenes subsection (1)
or (2) by disclosing information relating to a person whose identity—

(a) is specified in the disclosure, or

(b) can be deduced from it.

(5) 35It is a defence for a person charged with an offence under this section
of disclosing information to prove that the person reasonably
believed—

(a) that the disclosure was lawful, or

(b) that the information had already lawfully been made available
40to the public.

(6) A person guilty of an offence under this section is liable—

(a) on summary conviction, to imprisonment for a term not
exceeding 12 months or to a fine, or to both;

(b) on conviction on indictment, to imprisonment for a term not
45exceeding 2 years or to a fine, or to both.

(7) A prosecution for an offence under this section may be instituted only
by or with the consent of the Director of Public Prosecutions.

(8) In relation to an offence under this section committed before the
commencement of section 154(1) of the Criminal Justice Act 2003
5(increase in maximum term that may be imposed on summary
conviction of offence triable either way) the reference in subsection
(6)(a) to 12 months is to be taken as a reference to 6 months.

(9) This section is without prejudice to the pursuit of any remedy or the
taking of any action in relation to a contravention of subsection (1) or
10(2) (whether or not subsection (4) applies to the contravention).

(10) In this section—

• “qualifying person” has the same meaning as in section 63A;

• “qualifying purpose” has the same meaning as in that section.

63C Freedom of information

(1) 15Revenue and customs information relating to a person which has been
disclosed under section 63A or 63B is exempt information by virtue of
section 44(1)(a) of the Freedom of Information Act 2000 (prohibition on
disclosure) if its further disclosure—

(a) would specify the identity of the person to whom the
20information relates, or

(b) would enable the identity of such a person to be deduced.

(2) In this section “revenue and customs information relating to a person”
has the same meaning as in section 19(2) of the Commissioners for
Revenue and Customs Act 2005.”

(3) 25In section 143 (orders and regulations), in subsection (4ZA) after “section”
insert “63A or”.

26 Alteration of non-domestic rating lists

(1) Section 55 of the Local Government Finance Act 1988 (non-domestic rating:
alteration of lists) is amended as follows.

(2) 30After subsection (4) insert—

“(4A) In relation to an English list, the provision that may be included in the
regulations by virtue of subsection (4) includes—

(a) provision about the steps that must be taken before a person
may make a proposal for an alteration of the list (which may
35include steps designed to ensure the person checks the accuracy
and completeness of any information on which any decision by
the valuation officer has been based and gives the valuation
officer an opportunity to consider the results of those checks
and alter the list);

(b) 40provision restricting the circumstances in which any of those
steps may be taken and provision about the timing of any step;

(c) provision for valuation officers to impose financial penalties on
persons who, in, or in connection with, proposals for the
alteration of the list, knowingly, recklessly or carelessly provide
45information which is false in a material particular.

(4B) If provision is made by virtue of subsection (4A)(c)—

(a) the maximum amount of any penalty that may be specified in,
or determined in accordance with, the regulations is £500;

(b) the regulations must require any sum received by a valuation
5officer by way of penalty to be paid into the Consolidated Fund;

(c) the regulations may include provision for any penalty to be
recovered by the valuation officer concerned as a civil debt due
to the officer;

(d) the regulations must include provision enabling a person on
10whom a financial penalty is imposed to appeal against the
imposition of the penalty or its amount to the valuation
tribunal.”

(3) After subsection (5) insert—

“(5A) In relation to a proposal made by a person to alter an English list, the
15provision that may be included in regulations by virtue of subsection
(5) includes provision—

(a) about the grounds on which an appeal may be made;

(b) about the matters which are not to be taken into account by the
valuation tribunal as part of an appeal;

(c) 20about the circumstances in which new evidence may be
admitted on an appeal, and about the conduct of an appeal in
relation to such evidence;

(d) about the payment of fees by ratepayers in relation to appeals,
the payment of those fees into the Consolidated Fund and the
25circumstances in which those fees are to be refunded.

This subsection is without prejudice to the powers to make regulations
conferred by Part 3 of Schedule 11 (tribunals: procedure, orders, etc).”

(4) For subsection (8) substitute—

“(8) In this section—

• 30“English list” means—

  (a)

  a local non-domestic rating list that has to be compiled
  for a billing authority in England, or

  (b)

  the central non-domestic rating list that has to be
  compiled for England;

• 35“valuation tribunal” means—

  (a)

  in relation to England, the Valuation Tribunal for
  England;

  (b)

  in relation to Wales, a valuation tribunal established
  under paragraph 1 of Schedule 11.”

(5) 40In section 143 of that Act (orders and regulations), after subsection (3C)
insert—

“(3D) Any power to make regulations conferred by section 55 (alteration of
non-domestic rating lists) is exercisable by statutory instrument.

(3E) A statutory instrument which contains (whether alone or with other
45provision) regulations made by virtue of section 55(4A)(c) or (4B)
(alternation of non-domestic rating lists: financial penalties) may not be
made unless a draft of the instrument has been laid before and
approved by a resolution of each House of Parliament.

(3F) Any other statutory instrument containing regulations under section 55
is subject to annulment in pursuance of a resolution of either House of
Parliament.”

Part 7 5Other enterprise-related provisions

Industrial development

27 Allowable assistance under Industrial Development Act 1982

In section 8(8) of the Industrial Development Act 1982 (allowable assistance per
project)—

(a) 10for “the Secretary of State pays or undertakes to pay” substitute “are
paid, or undertaken to be paid,”;

(b) after “shall not exceed £10 million” insert “in the case of payments
made, or undertakings given by, the Scottish Ministers, or £30 million
in any other case”;

(c) 15after “the said sum of £10 million” insert “or £30 million”.

28 Grants etc towards electronic communications services and networks

(1) The Industrial Development Act 1982 is amended as follows.

(2) In section 13 (improvement of basic services), in the heading, at the end insert
“in development areas and intermediate areas”.

(3) 20After that section insert—

“13A Improvement of electronic communications networks and services etc

(1) This section applies if it appears to the Secretary of State that adequate
provision has not been made for an area in respect of electronic
communications facilities.

(2) 25The Secretary of State may, with the consent of the Treasury, make a
grant or loan towards the cost of improving an electronic
communications facility if—

(a) the Secretary of State considers that doing so is likely to
contribute to the development of industry in the area, or

(b) 30the Secretary of State considers that doing so is likely to benefit
the area in any other way (for example, by improving social or
economic inclusion), and the grant or loan is made to an
undertaking that is, or is to be, carried on in the area.

(3) In this section—

(a) 35“area” means the United Kingdom or a part or area of the
United Kingdom;

(b) “electronic communications facility” means an electronic
communications network, electronic communications service
or associated facility, as defined by section 32 of the
40Communications Act 2003.

(4) The power conferred by this section is in addition to any other powers
of the Secretary of State to make grants or loans.”

(4) In section 16(1)(a) (Secretary of State’s accounts), for “13 and 14” substitute “13
to 14”.

(5) 5In section 20(3) (extent)—

(a) for “and 12” substitute “, 12 and 13A”;

(b) after “sections 15” insert “, 16”.

UK Government Investments Limited

29 UK Government Investments Limited

(1) 10The Treasury or the Secretary of State may—

(a) provide grants, loans, guarantees or indemnities, or any other kind of
financial assistance (actual or contingent) to UK Government
Investments Limited, or

(b) make other payments to UK Government Investments Limited.

(2) 15“UK Government Investments Limited” means the private company limited by
shares incorporated on 11th September 2015 with the company number
09774296.

UK Green Investment Bank

30 Disposal of Crown’s shares in UK Green Investment Bank company

(1) 20Part 1 of the Enterprise and Regulatory Reform Act 2013 (UK Green
Investment Bank) is amended as follows.

(2) Omit the following provisions—

(a) section 1 (the green purposes);

(b) section 3 (alteration of Bank’s objects where it is designated by
25Secretary of State);

(c) section 5 (accounts, reports etc where Bank is designated by Secretary
of State).

(3) In section 2 (designation of Bank)—

(a) for the heading substitute “Interpretation”,

(b) 30omit subsections (1) to (8) (Secretary of State’s power to designate), and

(c) after subsection (9) insert—

“(10) In this Part “UK Green Investment Bank company” means—

(a) the UK Green Investment Bank, or

(b) a company that is or at any time has been in the same
35group as the Bank.

(11) For the purposes of subsection (10) a company is to be regarded
as being in the same “group” as the UK Green Investment Bank,
if, for the purposes of section 1161(5) of the Companies Act
2006, the company is a group undertaking in relation to the UK
40Green Investment Bank.”

(4) In section 4 (financial assistance from the Secretary of State)—

(a) in subsection (1)—

(i) omit “Where an order has been made under section 2,”,

(ii) for “the UK Green Investment Bank” substitute “a UK Green
5Investment Bank company”, and

(iii) for “Crown’s shareholding in it is more than half of its issued
share capital” substitute “Crown holds shares in it or another
UK Green Investment Bank company”,

(b) in subsection (3), in paragraphs (d) and (e), for “the Bank” substitute
10“the company”,

(c) omit subsection (5), and

(d) in subsection (6) (no effect on other powers to give financial assistance
to the Bank)—

(i) for “the Bank”, in the first place, substitute “a UK Green
15Investment Bank company”, and

(ii) for “Crown’s shareholding in the Bank is not more than half of
its issued share capital” substitute “Crown does not hold shares
in it or another UK Green Investment Bank company”.

(5) In section 6 (documents to be laid before Parliament)—

(a) 20in subsection (1)(a) omit “after an order has been made under section
2,”,

(b) in subsection (1)(b) for “the Bank” substitute “a UK Green Investment
Bank company”, and

(c) omit subsections (3) and (4).

(6) 25After section 6 insert—

“6A Report on disposal of Crown’s shares in UK Green Investment Bank
company

(1) As soon as reasonably practicable after a disposal of shares held by the
Crown in a UK Green Investment Bank company the Secretary of State
30must lay before Parliament a report on the disposal.

(2) The report—

(a) must state—

(i) the kind of disposal, and

(ii) the proportion of the company’s share capital retained
35by the Crown (or that none has been retained); and

(b) must include—

(i) an assessment of how the Secretary of State’s objectives
for the disposal have been achieved, and

(ii) where the Crown still holds one or more shares in a UK
40Green Investment Bank company, details of the
Secretary of State’s intentions as to the Crown’s future
role and interest in such companies.

(3) The Secretary of State must give a copy of the report to—

(a) the Scottish Ministers,

(b) 45the Welsh Ministers, and

(c) the Office of the First Minister and deputy First Minister in
Northern Ireland.

(4) Subsection (3) applies to a report as described in section 31 as well as to
a report under this section.”

31 UK Green Investment Bank: transitional provision

(1) The Secretary of State may not make regulations under section 38 appointing
5the day on which section 30 comes into force unless the Secretary of State has—

(a) decided to make a disposal of shares held by the Crown in a UK Green
Investment Bank company, and

(b) laid before Parliament a report on the proposed disposal (or, if more
than one, on each of them) which states—

(i) 10the kind of disposal intended,

(ii) the expected time-scale for the disposal, and

(iii) the Secretary of State’s objectives for the disposal.

(2) In this section “UK Green Investment Bank company” means—

(a) the public company limited by shares incorporated on 15 May 2012
15with the company number SC424067 and with the name UK Green
Investment Bank plc, or

(b) a company that is or at any time has been in the same group as that
company.

(3) For the purposes of subsection (2) a company is to be regarded as being in the
20same “group” as another company, if, for the purposes of section 1161(5) of the
Companies Act 2006, the company is a group undertaking in relation to that
other company.

32 Objectives of UK Green Investment Bank

(1) Prior to a sale of shares of a UK Green Investment Bank Company (as defined
25in section 31(2)) the Secretary of State shall—

(a) ensure that the objects of the UK Green Investment Bank Company
contained in its articles of association (“the Objectives”) shall be—

(i) the reduction of greenhouse gas emissions;

(ii) the advancement of efficiency in the use of natural resources;

(iii) 30the protection or enhancement of the natural environment;

(iv) the protection or enhancement of biodiversity;

(v) the promotion of environmental sustainability;

(b) ensure the articles of association of the UK Green Investment Bank
Company require its directors to act and review their actions against
35the Objectives;

(c) create a special share; and

(d) establish a company limited by guarantee registered with the Charity
Commission (“the Charitable Company”) that will own the special
share.

(2) 40Any amendment to the Objectives shall require the consent of the Charitable
Company, as holder of the special share.

(3) The special share shall—

(a) have no income or capital rights;

(b) have no voting rights except on a vote to amend the Objectives and on
45a vote to alter the rights of the special share.

(4) The rights of the special share shall be deemed altered by the issue of any other
special share of the same class.

(5) The Charitable Company that will own the special share shall—

(a) have three members, none of which shall be public bodies;

(b) 5have as initial members legal persons appointed by the Committee on
Climate Change established under the Climate Change Act 2008;

(c) provide that if any member ceases to be a member the remaining
members shall nominate the replacement member;

(d) provide that the members will be required to act unanimously in
10exercising the rights attached to the special share.

(6) For the avoidance of doubt, the Committee on Climate Change shall play no
role in the conduct of the Charitable Company or its members following the
initial appointment of those members prior to the sale of UK Green Investment
Bank company shares by the Secretary of State.

15Pubs code

33 Market rent only: conditions and triggers

(1) The Pubs Code shall require pub-owning businesses to offer a market rent only
option to tied pub tenants which fall within the definition in section 70(1)(a) of
the Small Business, Enterprise and Employment Act 2015 in the following
20circumstances—

(a) in connection with the renewal of any of the pub arrangements;

(b) in connection with a rent assessment or assessment of money payable
by the tenant in lieu of rent;

(c) in connection with a significant increase in the price at which any
25product or service which is subject to a product or service tie is supplied
to the tied pub tenant where the increase was not reasonably
foreseeable—

(i) when the tenancy or licence was granted, or

(ii) if there has been an assessment of the kind specified in
30paragraph (b), when the last assessment was concluded;

(d) after a trigger event has occurred.

(2) A “trigger event”, in relation to a tied pub tenant, means an event which—

(a) is beyond the control of the tied pub tenant,

(b) was not reasonably foreseeable,

(c) 35has a significant impact on the level of trade that could reasonably be
expected to be achieved at the tied pub, and

(d) is of a description specified in the Pubs Code.

34 Report on pub company avoidance

(1) The Pubs Code Adjudicator shall have a duty to report to the Secretary of State
40on cases of pub-owning businesses engaging in unfair business practices in
order to avoid the provisions in Part 4 of the Small Business, Enterprise and
Employment Act 2015, to the detriment of the tenant.

(2) A report under subsection (1) shall make recommendations on—