Local Government Finance Bill

Insert the following new Clause—

“Changes to national business rate policy

The Secretary of State may not make any changes to national business rate policy which impact on local business rate yields without first consulting all interested parties.”

Page 4, line 4, leave out from “Schedule” to end of line 5 and insert “shall have effect in relation to such financial year as is approved by a resolution of both Houses of Parliament (“the initial financial year”) and subsequent financial years, and the initial financial year shall be no earlier than the financial year beginning 1 April 2014”

Insert the following new Clause—

“Non-domestic rating, valuation, appeals, etc.

After the coming into force of this Act, any question as to the person or body liable to a charge to council tax or business rates shall be referred to the Valuation Tribunal and may be determined prior to any hearing by agreement with either the Valuation Office Agency or Billing Authority (or both) or (as the case may be) determined as part of any appeal into the level of banding or assessment as if it were an appeal against a non-domestic assessment.”

Insert the following new Clause—

“Payment by instalments

The Secretary of State may by order make regulations for the payment by instalments of any backdated liability for non-domestic rates where the previous liability arises in respect of an effective date specified by the valuation officer in a rate year prior to the year in which the relevant alteration to the valuation list is made.”

Insert the following new Clause—

“Rural petrol filling stations

The amount prescribed as the maximum amount of the rateable value for the purposes of section 43(6B)(6) (mandatory relief for certain hereditaments) of the Local Government Finance Act 1988 shall be, in the case of a petrol filling station (as defined in article 1(2) of the Non-Domestic Rating (Public Houses and Petrol Filling Stations) (England) Order 2001, £40,000.”

Insert the following new Clause—

“Relief for community buildings

Any relief given of rates chargeable in respect of any hereditament occupied by, or by trustees for, a charity and wholly or mainly used for charitable purposes (whether of that charity or of that and other charities) shall also be given in respect of any hereditament that is held on trust by or on behalf of a parish or town council or for a local community, not being for profit and used wholly or mainly for community purposes.”

Insert the following new Clause—

“Annual return regarding occupation of space

(1) Paragraph 5(1) of Schedule 9 to the Local Government Finance Act 1988 (request for specified information regarding a hereditament from the owner or occupier) is amended as follows.

(2) After “A valuation Officer may serve a notice” insert “from 1st April 2013, at least annually”.

(3) After sub paragraph (1A) insert—

“(1B) The notice may also require that details be provided of significant alterations to the hereditament whether of a structural nature or as to the occupation of the whole or any part or parts thereof made in the period of 12 months up to the time of the notice and both owner and occupier of any hereditament may be served with such notice accordingly, and any information requested may include the date of the change or addition.””

Insert the following new Clause—

“Central Rating Lists

(1) This section shall apply to any appeal in respect of the Central Rating List after the 31st March 2015.

(2) As regards the Central Rating List, and except as hereinafter provided, no single billing authority or group shall exercise rights to appeal or become involved in any appeal discussions as a party regardless of the size of the apportioned part of that central list assessment falling within its boundary.

(3) A billing authority desiring to be a party to a Central Rating List appeal shall first notify the responsible Valuation Officer of its intention to form an “Appeal Group”.

(4) An Appeal Group shall consist of not less than ten billing authorities which once formed shall be entitled to be represented as a single party in making or participating in any appeal including discussions or settlement of proceedings arising from any appeal provided such appeal is first lodged after 31st March 2015 and shall advise the valuation officer of the identity of the member authorities accordingly.

(5) Where the appeal group wishes to participate in an appeal lodged by another party, an appeal group shall be formed within 5 months of the date on which the valuation officer notifies relevant authorities as provided for hereunder.

(6) An appeal group shall be represented by a single nominated billing authority (the “lead authority”) on behalf of others and the lead authority shall act in the same capacity as a single authority whether as appellant or respondent.

(7) The lead authority shall be entitled to recover its reasonable costs from and be responsible for repaying costs as appropriate to the other members of the appeal group on such basis as they may determine or failing agreement as determined by the Secretary of State and shall be entitled to seek an award of costs or be liable to refund costs to another party as if it were a single party to the appeal.

(8) On receipt of notification of an appeal (in whatever form) against a Central List entry, the responsible valuation officer shall notify any billing authority in whose area any part of the hereditament concerned is situated (or if the billing authority is the appellant, the ratepayer) and pending notification of the formation of an appeal group shall not conclude negotiations or agree terms for the disposal of the appeal.

(9) The Secretary of State may make further regulations in relation to the exercise of these provisions.”

Insert the following new Clause—

“Disclosure and provision of information

In any appeal against the banding for council tax in the valuation list or of any non domestic hereditament in the Rating List, the parties shall prior to any appeal hearing, disclose and exchange the evidence on which they propose to rely as if the provisions of the Civil Procedure Rules applied.”

Insert the following new Clause—

“Appeals by billing authority

After paragraph 25 (arrangements for appeals) of the Non-Domestic Rating (Alteration Of Lists And Appeals) (England) Regulations 2005 insert—

“25A Appeals by billing authority

(1) A billing authority which on and after the date this Bill passes into law is aggrieved—

(a) by the inclusion of any hereditament in the rating list; or

(b) by any value ascribed in the list to a hereditament or by any other statement made or omitted to be made in the list with respect to that hereditament; or

(c) in the case of a building or a portion of a building occupied in parts, by the valuation in the list of that building or portion of a building as a single hereditament,

may at any time save as hereinafter provided make a proposal for the alteration of the list so far as it relates to that hereditament.

(2) In any appeal against an entry in the non-domestic rating list for their area on and from April 1st 2015 and save as hereinafter provided the relevant billing authority shall have rights as if it were a direct party to the appeal to take any step that a party could take in pursuance of that appeal including the attendance and presentation of evidence at Valuation Tribunal including the rights of appeal afforded to others taking part in the proceedings to the Upper Tribunal as necessary.

(3) In the exercise of the rights, the billing authority shall be entitled to a copy of any validly made proposal (within six weeks of its being received by the valuation officer) and may give notice to the responsible valuation officer within 4 months of that copy being received of its intention to be a party to the matter including any subsequent negotiations and shall be entitled to be notified of any withdrawal or discontinuance of the appeal and shall be a party to any agreement to alter the rating list that may be reached or any compromise of the appeal howsoever arrived at.

(4) Once so notified, the other parties to the appeal shall treat the billing authority as a full party and it shall be entitled to be notified of any and all procedural steps after its notice is received and for the avoidance of any doubt the billing authority is entitled under these provisions to be concerned by any or all of the entry or entries appearing in the rating list including but not limited to value, description and effective date.

(5) If the billing authority decides at any time that it no longer wishes to be involved in the proceedings it shall be entitled to notify same to the other parties and take no further part in the proceedings but without prejudice to any liability to contribute to the other parties costs as hereinafter determined.

(6) The Secretary of State may by order set out the circumstances under which such withdrawal may give rise to liability to contribute to the costs of any of the other parties to the matter where withdrawal would cause unreasonable additional expense or hardship to that other party.

(7) A billing authority shall have no rights of inspection as regards any hereditament (save for circumstance in which the billing authority itself is the owner or the occupier) in connection with the exercise of its rights under this section.””

Insert the following new Clause—

“Current rent passing

The Secretary of State may by order make regulations for the making of appeals against an entry or entries in the Rating List and no appeal shall be struck out or declared invalid save as provided for in regulations and in any event a failure to provide detail of the rent passing at the date the proposal to alter the List is made shall not render that appeal invalid.”

Insert the following new Clause—

“Validation of appeals

In paragraph 8 of the Non-Domestic Rating (Alteration of Lists and Appeals (England) Regulations 2009 (S.I. 2009/2268)) (invalid proposals) in sub-paragraph (1), after the words “he may at any time after its service on him” insert “provided that period is not longer than one month after such service”.”

Insert the following new Clause—

“Appeals: unified system

The Secretary of State shall by regulation provide for a unified system of appeals from the Valuation Tribunal on questions of liability and assessment (not being recovery of a debt) including a common basis of appeals to the Upper Tribunal (Lands Chamber) in relation to valuation, administration of national non-domestic rates, council tax and local support to council tax determination.”

Insert the following new Clause—

“Independence and neutrality of the valuation body

With effect from 1 April 2015 no agency or individual for the time being discharging the duties of a Valuation Officer under section 61 of the Local Government Finance Act 1988 shall be under the administrative or financial control of a department of state or other authority which is also charged with the duty of setting the national non-domestic rate multiplier or receiving the funds or revenues raised by the billing and collection of a rate.”

Insert the following new Clause—

“Rental value

In the case of any hereditament where there is clear market evidence that the rental value at a given date is materially lower than an entry in the Local Rating List based on the antecedent valuation date, and the rent passing is lower than the entry in the said List, it shall constitute a material change of circumstances.”

Insert the following new Clause—

“Council tax benefit

Nothing in this Act shall exclude council tax benefit from inclusion in universal credit.”

Insert the following new Clause—

“Grants: minimum amounts

Any grant payable to a local authority in England in support of a council tax reduction scheme shall not be less than the amount required to meet the costs of a scheme prescribed for the purposes of paragraph 4 of Schedule 1A to the LGFA 1992, or the amount of council tax benefit subsidy for that local authority in respect of the year beginning 1 April 2012.”

Insert the following new Clause—

“Electronic communication

The Secretary of State shall by regulation provide for the use of electronic means to communicate information regarding the level of a council tax demand.”

Page 5, line 11, at beginning insert “From 1 April 2014,”

Page 5, line 25, at end insert—

“(1A) Each billing authority in England shall receive the appropriate grant to meet the loss of council tax income in its discount scheme directly from the Secretary of State.”

Page 5, line 26, after scheme insert “, and consult their staff on its effectiveness,”

Page 5, line 31, at end insert—

“( ) The total amount of any grant payable to a local authority in England will be assessed each financial year beginning with 1 April 2013 in line with the Government’s New Burdens Doctrine.”

Page 5, line 31, at end insert—

“( ) In exercising its powers under subsection (2)(b), the authority must have regard to the impact of the scheme on work incentives for those persons in the area, including for those who are in employment or actively seeking employment.”

Page 5, line 31, at end insert—

“(2A) Each local authority in preparing its council tax reduction scheme should start on the basis that, all other factors being the same, the total cost should be no greater or less than in the previous financial year.”

Page 5, line 31, at end insert—

“( ) In exercising its powers under subsection (2)(b), the authority must have regard to the impact of the scheme on disabled people in the area.”

Page 5, line 31, at end insert—

“( ) In exercising its powers under section 1(2)(b), the authority must have regard to the impact of the scheme on carers in the area.”

Page 6, line 8, at end insert—

“( ) No regulations under paragraphs 2 and 4 of the new Schedule 1A to the LGFA 1992 shall be made unless a draft of the instrument has been laid before and approved by resolution of each House of Parliament.”

Page 6, line 17, leave out “2013” and insert “2014”

Page 6, line 19, leave out “2013” and insert “2014”

Baroness Hollis of Heigham gives notice of her intention to oppose the Question that Clause 9 stand part of the Bill.

Insert the following new Clause—

“Council tax discount: vulnerability

The Secretary of State shall issue guidance to all local authorities determining who shall be considered vulnerable for the purposes of eligibility for council tax discount.”

Page 58, line 8, after “income” insert “including universal credit”

Page 58, line 32, at end insert—

“( ) A scheme must set out the steps, including consulting local charities and organisations providing advice on benefits, which the local authority will take to ensure that—

(a) it estimates the numbers of people eligible to an application for reduction under the scheme;

(b) persons entitled to a reduction will be made aware of their entitlement; and

(c) assistance is available to such persons who wish to make an application.”

Page 58, line 32, at end insert—

“( ) Provision shall be made by the Secretary of State for the funding of the council tax discount scheme for all eligible claimants under the scheme.”

Page 58, line 32, at end insert—

“( ) Where the Secretary of State has agreed to make a payment on account in accordance with paragraph 26 of Schedule 7B, consideration shall also be given to the provision of additional funds for the council tax discount scheme.”

Page 58, line 42, leave out from beginning to end of line 13 on page 59

Page 58, line 43, at end insert—

“( ) Before making regulations under sub-paragraph (8), the Secretary of State must consult with local authorities regarding any proposed requirements for schemes.”

Page 59, line 41, at end insert—

“( ) Such consultation shall apply to the proposed council tax discount scheme both under the existing benefit structure, and when appropriate under the proposed Universal credit structure.”

Page 60, line 1, leave out sub-paragraph (4)

Page 60, line 18, at end insert—

“( ) If a local billing authority is subject to judicial review in respect of a failure to complete the steps set out in sub-paragraph 1 because of any delay in the issue of regulations or guidance, or in the coming into force of this paragraph, the Secretary of State shall reimburse the authority for any costs incurred in connection with such a review.”

Page 60, line 21, at end insert—

“( ) The default scheme must include provisions concerning reductions for vulnerable people having at least the equivalent effect to provisions under council tax benefit regulations for the year commencing 1 April 2012.

( ) The Secretary of State must make regulations to—

(a) state the class or classes of persons deemed to be vulnerable for the purposes of the above; and

(b) identify the extent to which he considers such persons must be entitled to a reduction under any other scheme made as a consequence of section 9 of this Act.”

Page 60, line 23, leave out “2013” and insert “2014”

Page 60, leave out line 28

Page 60, line 34, at end insert—

“(4A) If the default scheme reduces or removes a reduction to which any class of persons was entitled under council tax benefit, it must include such transitional provision relating to that reduction or removal as the Secretary of State, after consultation with representatives of local government, think fit.”

Page 60, line 34, at end insert—

“(4A) The default scheme shall ensure, in so far as can be reasonably assessed, that no person of working age shall receive a lesser entitlement to a council tax reduction than they would have been entitled to in similar circumstances under council tax benefit arrangements replaced by such a scheme.”

Page 61, line 5, leave out “2013” and insert “2014”

Page 61, line 14, leave out sub-paragraphs (2) and (3)

Page 62, line 3, at end insert—

“(4) Both billing and precepting authorities shall be entitled to hold such balances to deal with shortfalls in council tax receipts as agreed with their auditors.”

Page 62, line 25, leave out paragraph 9

Page 66, line 19, at end insert—

1A In Part 1 of Schedule 11 to the LGFA 1988 (the Valuation Tribunal for England), after paragraph A18 insert—

A18A (1) A member of the First-tier Tribunal (an “FTT member”) may act as a member of the Valuation Tribunal for England.

(2) An FTT member may only act as a member of the Tribunal—

(a) at the request of the President and with the approval of the Senior President of Tribunals,

(b) in relation to an appeal that relates, in whole or in part, to a council tax reduction scheme made or having effect as if made by a billing authority in England, and

(c) if the FTT member is not disqualified from being, or acting as, a member of the Tribunal.

(3) A request under sub-paragraph (2)(a)—

(a) may relate to a particular appeal or to appeals of a particular kind,

(b) may be made only if the President thinks that FTT members are likely to have particular expertise that is relevant to the determination of the appeal, or to appeals of the kind, to which it relates.

(4) An approval under sub-paragraph (2)(a) may relate to a particular appeal or to appeals of a particular kind.

(5) The President may withdraw a request at any time; and an FTT member acting as a Tribunal member in response to a request must cease to do so if it is withdrawn.

(6) References in this Schedule and in regulations made under paragraph A19 to a member of the Tribunal include an FTT member acting as a member of the Tribunal.

(7) But sub-paragraph (6) does not apply—

(a) to paragraph A7, A8, A9, A10 or A12 (which make provision about the appointment and removal of, numbers of, and payments to, members of the Tribunal);

(b) to regulations under paragraph A19, if and to extent that the regulations provide that it does not apply.

(8) The Valuation Tribunal Service may make payments to the Lord Chancellor in respect of the expenditure incurred by the Lord Chancellor in paying remuneration, allowances or expenses to an FTT member whilst acting as a member of the Tribunal.

(9) In this paragraph—

(a) references to an appeal include a review by the Tribunal of a decision made by it on an appeal,

(b) “council tax reduction scheme” has the same meaning as in Part 1 of the Local Government Finance Act 1992 (see section 13A(9) of that Act).””

Page 67, line 5, at end insert—

“6A The Local Government Act 2003 is amended as follows.”

Page 67, line 6, leave out “of the Local Government Act 2003”

Page 67, line 7, at end insert—

“8 In section 105(2)(aa) (functions of the Valuation Tribunal Service: payments to members of the Valuation Tribunal for England), after “A14” insert “or A18A(8)”.”

Page 67, line 7, at end insert—

8 In section 1(3)(c) of the Welfare Reform Act 2012, after “an amount for housing” insert “including council tax costs”.”

Page 67, line 7, at end insert—

“9 In section 8(2)(c) of the Welfare Reform Act 2012, after “section 11 (housing costs), and” insert “including council tax”.”

Page 67, line 7, at end insert—

“10 For section 36 of the Welfare Reform Act 2012 substitute—

“36 Migration to universal credit including council tax benefit

Schedule 6 contains provisions about the replacement of benefits, including council tax benefit, by universal credit.””

Insert the following new Clause—

“Report on effects of provisions

At a date no later than three years from the implementation of this Act, the Secretary of State shall prepare a report detailing the effect of these provisions on—

(a) the number of people receiving or eligible to receive council tax support in each local authority, including the number in employment, the number actively seeking work, and the number of pensionable age;

(b) the costs incurred by each authority in running the scheme, including the cost of appeals; and

(c) the impact on work incentives.”

Page 6, line 40, leave out “2013” and insert “2014”

[Re-numbered as Amendment 73A]

Insert the following new Clause—

“Power to make discounts discretionary

(1) Section 11 of the Local Government Finance Act 1992 (discounts) is amended as follows.

(2) In subsection (3) leave out from “or” to the end and insert “such other percentage as the billing authority may determine”.

(3) Omit subsection (4).”

Insert the following new Clause—

“Review of changes to entitlement to council tax support

As part of the Local Government finance report, the Secretary of State shall—

(a) report on changes to the numbers of individuals entitled to council tax support;

(b) redirect funding for council tax support to reflect the changes to entitlement.”

Page 9, line 5, leave out subsection (2) and insert—

“(2) This section comes into force on such day as the Secretary of State may by order made by statutory instrument appoint.”

Page 9, line 6, leave out “2013” and insert “2014”

Insert the following new Clause—

“Council tax reduction: disabled people

Nothing in this Act shall affect the current eligibility of disabled people to receive a reduction in their council tax liability through the disabled band reduction scheme.”

Insert the following new Clause—

“Additional council tax band

The Secretary of State shall consult with local authorities for the introduction of an additional higher band of council tax — “I” — in England, for dwellings with a 1991 property value of £420,000, at a tax rate relative to Band D of 21/9; or its 2013 equivalent.”

Insert the following new Clause—

“Enforcement of council tax

Councils shall include procedures in their contracts with bailiff companies covering the enforcement of council tax which allows for the return of a warrant by the bailiffs to the councils for reconsideration when—

(a) there is a mistake in the decision to issue the warrant in the first place;

(b) the warrant was imposed by the local authority before the relevant facts of the case were known;

(c) the circumstances of the defaulter have changed since the warrant was issued by the local authority;

(d) the defaulter is experiencing financial hardship and is unable to pay the tax; and

(e) the circumstances of the defaulter fall within the circumstances of “vulnerable situations” on page 9 of the National Standards for Enforcement Agents issued by the Ministry of Justice in 2012.”

Insert the following new Clause—

“Proposals to alter valuation list

On receipt of a proposal to alter the valuation list made by or on behalf of a ratepayer, the Valuation Officer Agency shall within 30 days issue an acknowledgement of receipt and any such acknowledgement shall be evidence that the proposal is valid.”

Insert the following new Clause—

“Appeals against entry

The Secretary of State may by order make regulations for the conduct of appeals against an entry in the valuation list and no appeal shall be struck out or declared invalid save as provided for in regulations.”

Page 17, line 7, at end insert—

“( ) In Schedule 11 to the LGFA 1988, in paragraph 8(3)(ea) (regulations about procedure before tribunals)—

(a) for sub-paragraph (iv) substitute—

“(iv) paragraph 15A or 15B of Schedule 2 to the 1992 Act or regulations under that Schedule;”,

(b) omit the “or” following that sub-paragraph, and

(c) after “1996” insert “or of information supplied under section 131 of the Welfare Reform Act 2012 for purposes relating to council tax;”.”

Insert the following new Clause—

“Power for HMRC to supply information for purposes of rates in Northern Ireland

(1) A Revenue and Customs official may supply information which is held by the Revenue and Customs in connection with a function of the Revenue and Customs to a qualifying person for prescribed purposes relating to rates.

(2) The following are qualifying persons—

(a) the Department of Finance and Personnel in Northern Ireland (“DFP”);

(b) the Northern Ireland Housing Executive (“NIHE”);

(c) a person authorised to exercise any function of DFP or NIHE relating to rates;

(d) a person providing services to DFP or NIHE relating to rates.

(3) Information supplied under this section may be used for another prescribed purpose relating to rates.

(4) Information supplied under this section may be supplied to another qualifying person for a prescribed purpose relating to rates (whether or not that is a purpose for which it was supplied).

(5) A person to whom subsection (6) applies is guilty of an offence if the person discloses without lawful authority any information—

(a) which comes to the person by virtue of this section, and

(b) which relates to a particular person.

(6) This subsection applies to—

(a) a qualifying person other than DFP;

(b) a person who is or has been a director, member of the committee of management, manager, secretary or other similar officer of a qualifying person;

(c) a person who is or has been an employee of a qualifying person.

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

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

(b) on summary conviction, to imprisonment for a term not exceeding 6 months or a fine not exceeding the statutory maximum, or both.

(8) It is not an offence under this section—

(a) to disclose information in the form of a summary or collection of information so framed as not to enable information relating to any particular person to be identified from it;

(b) to disclose information which has previously been disclosed to the public with lawful authority.

(9) It is a defence for a person (“D”) charged with an offence under this section to prove that at the time of the alleged offence—

(a) D believed that D was making the disclosure in question with lawful authority and had no reasonable cause to believe otherwise, or

(b) D believed that the information in question had previously been disclosed to the public with lawful authority and had no reasonable cause to believe otherwise.

(10) For the purposes of this section, “lawful authority” has the meaning given by section 117 of the Social Security Administration (Northern Ireland) Act 1992.

(11) In this section—

“Revenue and Customs official”, “the Revenue and Customs” and “function of the Revenue and Customs” have the same meaning as in section 18 of the Commissioners for Revenue and Customs Act 2005;

“rates” has the same meaning as in the Rates (Northern Ireland) Order 1977 (S.I. 1977/2157 (N.I.28));

“prescribed” means prescribed by regulations made by DFP.

(12) Regulations under this section must not be made except with the consent of the Commissioners for Her Majesty’s Revenue and Customs.

(13) The power to make regulations under this section is exercisable by statutory rule for the purposes of the Statutory Rules (Northern Ireland) Order 1979 (S.I. 1979/1573 (N.I.12)).

(14) Regulations under this section are to be the subject to negative resolution (within the meaning of section 41(6) of the Interpretation Act (Northern Ireland) 1954).

(15) This section comes into force at the end of the period of 2 months beginning with the day on which this Act is passed.”

Insert the following new Clause—

“Grants paid under section 70 of the Welfare Reform Act 2012

(1) Any grant paid to local authorities under section 70 of the Welfare Reform Act 2012 (social fund) shall be expended by the local authority only for said purposes.

(2) Any such grants will be made under the guidance of the Secretary of State with regard to the application of any “local connection rules” including so that any such rule does not apply to—

(a) people who have fled domestic violence;

(b) young people who have left local authority care;

(c) young people who are homeless, or who have been homeless within the last 12 months;

(d) people who have left institutional or residential care, including a hospital, prison or young offenders’ institution.”

Page 17, line 27, leave out “an Act” and insert “any of the following”

Page 17, line 28, at end insert “—

( ) an Act of Parliament;

( ) an Act of the Scottish Parliament;

( ) an Act or Measure of the National Assembly for Wales;

( ) Northern Ireland legislation as defined in section 24 of the Interpretation Act 1978.”

Page 18, line 2, leave out “subsection (2)” and insert “subsections (2) and (2A)”

Page 18, line 3, leave out “Sections 15 and 17 extend” and insert “Section 15 extends”

Page 18, line 3, at end insert—

“(2A) Sections (Power for HMRC to supply information for purposes of rates in Northern Ireland) and 17 extend to England and Wales, Scotland and Northern Ireland.”

Line 2, after “tax;” insert “to make provision about the supply of information for purposes relating to rates in Northern Ireland;”