Local Government Finance Bill

AMENDMENTS
TO BE MOVED
ON REPORT

Clause 1

LORD MCKENZIE OF LUTON

LORD BEECHAM

 

Page 2, line 10, at end insert—

“( ) paragraphs 37 and 38 (regulations about designation of areas and classes of hereditament)”

 

Page 2, line 21, at end insert—

“( ) The Secretary of State must by 30th November 2012, and after consulting with representatives of local government as he thinks appropriate, form a view on whether local authorities—

(a) have been provided with sufficient detailed information regarding the business rates retention scheme; or

(b) are likely to be provided with such further information on a timely basis before, or when receiving, the local government finance report;

in order to enable all local authorities to set an informed budget and council tax for 2013/14.

( ) If the Secretary of State forms the view that all relevant information has not or will not be provided on a timely basis then he must make an order under section 1(7) of this Act.”

Schedule 1

LORD MCKENZIE OF LUTON

LORD BEECHAM

 

Page 21, line 29, at end insert—

“( ) Such use for the purposes of local government in England must be on a basis which reflects the spending needs of local government and the resources available to it.”

LORD SMITH OF LEIGH

 

Page 22, line 23, after “year” insert “and for two subsequent years”

LORD MCKENZIE OF LUTON

LORD BEECHAM

 

Page 22, line 31, at end insert—

“( ) In calculating the local and central shares, the estimated business rates aggregate will include business rates derived from properties on the central rating list.”

 

Page 22, line 31, at end insert—

“( ) The local share must never be less than 50% of the business rates aggregate.”

LORD SMITH OF LEIGH

 

Page 22, line 31, at end insert—

“and the percentages referred to in paragraphs (a) and (b) must be determined after full consultation with local government.”

 

Page 22, line 33, at end insert “, including the full details of the consultation undertaken”

 

Page 22, line 40, at end insert “no later than the end of November of each year”

LORD JENKIN OF RODING

 

Page 23, line 16, at end insert—

“(4A) Regulations under this paragraph and under paragraph 8 may, subject to such adjustments as may be specified in the regulations, define the non-domestic rating income of a special authority by reference to the amount which would be payable to it in respect of the year under sections 43 and 45 if—

(a) the authority’s non-domestic rating multiplier and small business non-domestic rating multiplier for the year were equal respectively to the non-domestic rating multiplier and small business non-domestic rating multiplier for the year, so far as relating to England, determined in accordance with Part 1 of Schedule 7, and

(b) the authority acted diligently.”

 

Page 23, line 20, at end insert—

“(6) Regulations made by the Secretary of State may provide for a deduction from the amount payable by a special authority under sub-paragraph (2), of an amount determined by him.”

BARONESS HANHAM

 

Page 23, line 35, at end insert—

“( ) about the making of a payment by a billing authority to the Secretary of State or vice versa where—

(i) a calculation of a payment under paragraph 6 is made by reference to an estimate of an amount, and

(ii) it is subsequently determined that the actual amount is more or less than the estimate.”

 

Page 25, line 6, at end insert—

“( ) about the making of a payment by a billing authority to a major precepting authority or vice versa where—

(i) a calculation of a payment under regulations under paragraph 8 is made by reference to an estimate of an amount, and

(ii) it is subsequently determined that the actual amount is more or less than the estimate.”

LORD SMITH OF LEIGH

 

Page 27, leave out lines 37 to 40 and insert “in two equal instalments at six monthly intervals”

BARONESS HANHAM

 

Page 32, line 27, leave out “paid” and insert “payable”

 

Page 32, line 31, leave out “paid to it for the year” and insert “of the amounts payable in respect of the year under those sections to the billing authorities that are required to make payments to it for the year”

LORD SMITH OF LEIGH

 

Page 33, line 39, at end insert “, and

(c) whether the payment would be triggered by a fall in business rates of 5 per cent”

BARONESS HANHAM

 

Page 34, line 2, leave out “paid” and insert “payable”

 

Page 34, line 6, leave out “paid to it for the year” and insert “of the amounts payable in respect of the year under those sections to the billing authorities that are required to make payments to it for the year”

LORD MCKENZIE OF LUTON

LORD BEECHAM

 

Page 34, line 44, at end insert—

“( ) The regulations must not allow the calculation of the safety net threshold for any authority to be below 5% of its spending threshold for more than one year in five.”

 

Page 34, line 44, at end insert—

“Major redevelopment scheme: substantial loss of non-domestic rate income

(1) In any case where a relevant authority approves a major redevelopment scheme resulting in a substantial loss of non-domestic rate income for a perod exceeding one year, the authority may make an application to the Secretary of State for a safety net payment to be made to the authority each year for the period of the scheme.

(2) The Secretary of State must determine whether to make such a payment having regard to—

(a) the proportion of non-domestic rate income which will be lost to the authority for the period of the scheme, and

(b) the future social and economic benefits of the scheme.

(3) The Secretary of State must notify the authority of his or her decision on whether or not to grant a safety net payment, and allow the authority 28 days to make representations about his or her decision before issuing a final determination.”

BARONESS HANHAM

 

Page 47, line 14, at end insert—

“Estimates of amounts to be disregarded

39A (1) The Secretary of State may by regulations make provision for—

(a) calculations of a kind mentioned in paragraph 37(1)(d) or 38(1)(d) to be made on the basis of an estimate of an amount or proportion that is to be disregarded under regulations under that paragraph;

(b) for the making of a payment by the Secretary of State to a billing authority or vice versa where it is subsequently determined that the amount or proportion to be disregarded is more or less than the amount of the estimate.

(2) Regulations under this paragraph may make provision about the administration of payments under the regulations, including as to—

(a) the time and manner in which a payment is to be made, and

(b) the consequences of non-payment.”

LORD SMITH OF LEIGH

 

Page 47, line 15, at end insert—

“Publication of impacts and resets Calculation and supply of information on the impact on total resources available for Local Authorities

39A (1) The Secretary of State must for each year and in relation to each billing authority in England identify—

(a) the total level of resources available for each billing authority in the preceding year including—

(i) the local share of an authority’s non-domestic rating income;

(ii) the total share of any top up or tariff;

(iii) the total of any levy paid to the Government;

(iv) the total of any safety net paid by the Government;

(v) the total amount of resources raised through Council Tax;

(vi) the total of any homes bonus paid by the Government;

(vii) any other payment made by the Government considered appropriate to be included by the Government following consultation with local government;

(b) an estimate of the total level of resources available for each billing authority in the following year including—

(i) council tax receipts;

(ii) support from central government.”

After Clause 4

LORD MCKENZIE OF LUTON

LORD BEECHAM

 

Insert the following new Clause—

“Representations from local authorities regarding a reset of the system

(1) The Secretary of State shall, prior to the publication of the Local Government Financial Report in any year, lay before both Houses of Parliament a report detailing—

(a) any representations received from local authorities on whether it would be appropriate to reset the system; and

(b) his or her decision on such representations and the reasons for that decision.”

 

Insert the following new Clause—

“Independent review of the local retention of non-domestic rates

(1) No later than three years after 1st April 2013, the Secretary of State shall cause to be undertaken a comprehensive independent review of the application and outcome of the local retention of non-domestic rates provisions continued in sections 1 to 6 of this Act.

(2) A review under subsection (1) shall include an assessment of the extent to which available resources are meeting the spending needs of individual authorities, whether baseline funding levels and tariffs and top ups remain appropriate and fair, and the extent to which the system is incentivising growth.

(3) The review shall include a recommendation as to what changes, if any, are required under Part 5 of Schedule 7B to the LGFA 1988, in order to ensure local authorities have adequate resources to meet spending needs.”

 

Insert the following new Clause—

“Reassessment and reset of the non-domestic rates retention system

(1) The Secretary of State shall be required to make arrangements for a reassessment of the non-domestic rates retention system and a reset every 3 years to coincide with each spending review period.

(2) Such reassessment for each authority shall take account of relative resources and spending needs.

(3) The assessment of relative need is to be determined in full consultation with local government.

(4) Any assessment of the level of need in the authority shall include—

(a) the ranking of the local authority in the Index of Multiple Deprivation,

(b) the level of unemployment within the authority’s area,

(c) the proportion of adults with a limiting long-term illness within the authority’s area,

(d) the number of adults in receipt of social care within the authority’s area,

(e) the number of looked-after children within the authority, and

(f) the level of child poverty within the authority’s area.”

Schedule 3

BARONESS HANHAM

 

Page 56, line 35, after “authorities),” insert—

“( ) under provision made by regulations under paragraph 39A of that Schedule (payments by Secretary of State following estimates of amounts relating to designated areas or classes),”

 

Page 57, line 19, at end insert—

“( ) under provision made by regulations under paragraph 39A of that Schedule (payments to Secretary of State following estimates of amounts relating to designated areas or classes),”.”

 

Page 57, line 46, after “Schedule,” insert “regulations made under paragraph 39A of that Schedule,”

 

Page 58, line 5, after “Schedule,” insert “regulations made under paragraph 39A of that Schedule,”

Before Clause 9

BARONESS HOLLIS OF HEIGHAM

 

Insert the following new Clause—

“Council tax benefit

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

Prepared 8th October 2012