Local Government Finance Bill

MARSHALLED
LIST OF AMENDMENTS
TO BE MOVED
ON REPORT

The amendments have been marshalled in accordance with the Order of 8th October 2012, as follows—

Clause 1
Schedule 1
Clause 2
Schedule 2
Clauses 3 to 5
Schedule 3
Clauses 6 to 9
Schedule 4
Clauses 10 to 20

[Amendments marked * are new or have been altered]

Clause 1

BARONESS HANHAM

1

Page 2, line 4, at end insert—

“( ) paragraph 9A (regulations about payments by billing authorities to major precepting authorities out of deductions from central share payments);”

2

Page 2, line 10, at end insert—

“( ) paragraph 37 or 38 (regulations about designated areas or classes of hereditament), if the regulations contain provision within paragraph 39 (payments to relevant authorities).”

LORD MCKENZIE OF LUTON

LORD BEECHAM

3

Page 2, line 10, at end insert—

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

4

Page 2, line 21, at end insert—

“( ) The Secretary of State must by 30th November 2012, and after consulting 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

BARONESS HANHAM

5

Page 20, line 33, at end insert—

“(ba) amounts received by the Secretary of State in the year under regulations under section 99(3) (treatment of surplus or deficit in collection fund) that make provision in relation to non-domestic rates,”

6

Page 21, line 16, at end insert—

“(za) payments made by the Secretary of State in the year under regulations under section 99(3) that make provision in relation to non-domestic rates,”

LORD MCKENZIE OF LUTON

LORD BEECHAM

7

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.”

BARONESS HANHAM

8

Page 21, line 33, after “(b)” insert “, (ba)”

9

Page 21, line 35, leave out “(2)(a)” insert “(2)(za) and (a)”

LORD JENKIN OF RODING

10

Page 22, line 22, leave out “each year” and insert “each financial year until the end of the financial year beginning 1 April 2014,”

LORD SMITH OF LEIGH

11

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

12

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.”

LORD JENKIN OF RODING

13

Page 22, line 31, at end insert—

“A billing authority’s central share for a year may not exceed its central share for the previous year.”

14

Page 22, line 31, at end insert—

“The following shall apply in relation to the central share—

(a) the percentage that is to be the billing authority’s central share for the year ending in 2016 shall be at least five lower than it was in the year ending in 2014;

(b) the percentage that is to be the billing authority’s central share for the year ending in 2018 shall be at least five lower than it was in the year ending in 2016;

(c) the percentage that is to be the billing authority’s central share for the year ending in 2020 shall be at least five lower than it was in the year ending in 2018.

The following shall apply in relation to the local share—

(a) the percentage that is to be the billing authority’s local share for the year ending in 2016 shall be at least five higher than it was in the year ending in 2014;

(b) the percentage that is to be the billing authority’s local share for the year ending in 2018 shall be at least five higher than it was in the year ending in 2016;

(c) the percentage that is to be the billing authority’s local share for the year ending in 2020 shall be at least five higher than it was in the year ending in 2018.”

LORD MCKENZIE OF LUTON

LORD BEECHAM

15

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.”

16

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

17

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

18

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

BARONESS HANHAM

19

Page 23, line 10, leave out “sub-paragraph (2)” and insert “this paragraph”

LORD JENKIN OF RODING

20

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.”

BARONESS HANHAM

21

Page 23, line 20, at end insert—

“( ) This paragraph is subject to regulations under paragraph 7A.”

LORD JENKIN OF RODING

22

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

23

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.”

LORD JENKIN OF RODING

24

Page 23, line 35, at end insert—

“(3) The regulations must make provision to ensure that, where—

(a) a billing authority is required to make a repayment or credit by regulations made under paragraph 2(2)(j) of Schedule 9, and

(b) the requirement is the result of a relevant alteration of the authority’s local non-domestic rating list,

the amount of the repayment or credit is credited against subsequent payments by the authority under this paragraph.

(4) A relevant alteration for the purposes of sub-paragraph (3) is an alteration made under section 55, which was—

(a) an alteration of the rateable value of a hereditament shown in the list,

(b) made on the grounds of an inaccuracy in the list arising from a change in the matter mentioned in paragraph 2(7)(e) of Schedule 6, and

(c) attributable to a general change in the level of demand for, or supply of premises of a given use or occupation within the locality of the hereditament.

(5) The regulations must make provision to ensure that, where—

(a) a billing authority is required to make a repayment or credit by regulations made under paragraph 2(2)(j) of Schedule 9,

(b) the requirement is the result of a relevant alteration of the authority’s local non-domestic rating list, and

(c) the authority has made a payment under paragraph 6(2) or 8(1) as a result of the relevant sum having been treated as forming part of the authority’s non-domestic rating income for the year,

the amount of the payment by the authority referred to in paragraph (c) is repaid to the authority or credited against subsequent payments by the authority under the same paragraph.

(6) A relevant alteration for the purposes of sub-paragraph (5) is an alteration made under section 55, which was—

(a) an alteration of the rateable value of a hereditament shown in the list, and

(b) not made by reason of a material change of circumstances which occurred on or after the day on which the list was compiled,

and the relevant sum for the purposes of sub-paragraph (5)(c) is the sum in relation to which the repayment or credit referred to in sub-paragraph (5)(a) is required to be made.”

BARONESS HANHAM

25

Page 23, line 35, at end insert—

“Regulations about deductions from central share payments

7A (1) The Secretary of State may by regulations make provision for the deduction from a payment to be made under paragraph 6 by a billing authority to the Secretary of State of an amount to be determined in accordance with the regulations.

(2) The regulations may, in particular, make provision for the determination of an amount to be deducted to be made by reference to the operation in relation to the billing authority of section 47 (discretionary relief).

(3) The consent of the Treasury is required to regulations under this paragraph.”

26

Page 24, line 13, leave out “the local share of”

27

Page 24, line 16, leave out “sub-paragraph (4)” and insert “this paragraph”

28

Page 24, line 26, at end insert—

“( ) The regulations may not have the effect that the total amount payable by a billing authority under the regulations for a year exceeds the billing authority’s local share of its non-domestic rating income for a year.”

29

Page 24, line 36, leave out “or this paragraph” and insert “, this paragraph or Part 6 (funds) so far as applying to non-domestic rates”

30

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.”

31

Page 25, line 7, leave out “audit” and insert “certification”

32

Page 25, line 10, leave out “or this paragraph” and insert “, this paragraph or Part 6 (funds) so far as applying to non-domestic rates”

33

Page 25, line 11, leave out from “a” to “does” in line 12 and insert “certified calculation or certified information”

34

Page 25, line 14, after “or” insert “certified”

35

Page 25, line 14, at end insert—

“( ) The regulations may confer power on the Secretary of State to give directions about the certification of calculations or information.”

36

Page 25, line 14, at end insert—

“Payments out of deduction from central share payments

9A (1) The Secretary of State may by regulations make provision for a billing authority to make a payment for a year to one or more major precepting authorities of an amount equal to a proportion of the amount that is to be deducted in accordance with regulations under paragraph 7A from the billing authority’s payment under paragraph 6 to the Secretary of State for the year.

(2) The regulations may make provision about the administration of payments to major precepting authorities under the regulations.

(3) The regulations may, in particular, make provision in relation to payments to major precepting authorities of the same kind as the provision that may be made under sub-paragraph (2) of paragraph 9 in relation to payments to major precepting authorities to which that sub-paragraph applies.”

LORD JENKIN OF RODING

37

Page 25, line 33, at end insert—

“10A (1) This paragraph applies where the basis for calculation includes an amount calculated by reference to a billing authority’s non-domestic rating income for a given year or years which precede the year for which the local government finance report is made.

(2) The basis for calculation must, so far as reasonably practicable, provide for the calculation of the amount referred to in sub-paragraph (1) on the assumed basis.

(3) The assumed basis is that any relevant alteration of the authority’s local non-domestic rating list for the given year or years (or, where more than one list was in force in the given years, of any of those lists) had been made on and had effect from the day on which that list came into force.

(4) A relevant alteration for the purposes of this paragraph is an alteration made under section 55, which was—

(a) made after the first day of the given year or years, or after the first day on which the list was in force, whichever day is the later,

(b) made before the day on which the local government finance report is approved under paragraph 11(1),

(c) an alteration of the rateable value of a hereditament shown in the list, and

(d) an alteration to which sub-paragraph (5) or (6) applies.

(5) This sub-paragraph applies to an alteration made under section 55 which was not made by reason of a material change of circumstances which occurred on or after the day on which the list was compiled.

(6) This sub-paragraph applies to an alteration which was—

(a) made on the grounds of an inaccuracy in the list arising from a change in the matter mentioned in paragraph 2(7)(e) of Schedule 6, and

(b) attributable to a general change in the level of demand for, or supply of premises of a given use or occupation within the locality of the hereditament.

(7) For the purposes of this paragraph, reference to a billing authority’s non-domestic rating income for a given year is reference, whether direct or indirect, to the amount which was or will be payable to the authority in respect of the year under section 43 or 45, or which would have been or would be so payable in certain circumstances.”

38

Page 26, line 20, at end insert—

“11A (1) Calculations under paragraph 11(2) must include appropriate adjustments where it appears to the Secretary of State that an over-payment or under-payment has been made.

(2) An over-payment has been made for the purposes of this paragraph where the condition in sub-paragraph (4) and either of the conditions in sub-paragraph (5) or (6) are met.

(3) An under-payment has been made within the meaning of this sub-paragraph where the conditions in sub-paragraphs (4) and (7) are met.

(4) The condition in this sub-paragraph is that the local government finance report for a year previous to the year in respect of which the calculations are made included an amount calculated by reference to a billing authority’s non-domestic rating income for a given year or years which preceded the year for which the local government finance report was made.

(5) The condition in this sub-paragraph is that—

(a) a relevant authority has made a net payment to the Secretary of State under paragraph 12 and, as may be the case, paragraph 15 in respect of the year for which the local government finance report was made, and

(b) had the amount referred to in sub-paragraph (4) been calculated on the assumed basis, but the basis of calculation had in all other respects been the same, the amount of the net payment falling to be made by the authority would have been less than the amount of the payment referred to in sub-paragraph (5)(a).

(6) The condition in this sub-paragraph is that—

(a) a relevant authority has made a net payment to the Secretary of State under paragraph 12 and, as may be the case, paragraph 15 in respect of the year for which the local government finance report was made, and

(b) had the amount referred to in sub-paragraph (4) been calculated on the assumed basis, but the basis of calculation had in all other respects been the same, no net payment would have fallen to be made by the authority, but a net payment would have fallen to be made by the Secretary of State to the authority.

(7) The condition in this sub-paragraph is that—

(a) the Secretary of State has made a net payment to a relevant authority under paragraph 12 and, as may be the case, paragraph 15 in respect of the year for which the local government finance report was made, and

(b) had the amount referred to in sub-paragraph (4) been calculated on the assumed basis, but the basis of calculation had in all other respects been the same, the amount of the net payment falling to be made by the Secretary of State would have been more than the amount of the payment referred to in sub-paragraph (7)(a).

(8) The assumed basis is that any relevant alteration of the authority’s local non-domestic rating list for the year for which the local government finance report was made had been made on and had effect from the day on which that list came into force.

(9) A relevant alteration for the purposes of this paragraph is an alteration made under section 55, which was—

(a) made after the first day of the given year or years, or after the first day on which the list was in force, whichever day is the later,

(b) made before the day on which the local government finance report was approved under paragraph 11(1),

(c) an alteration of the rateable value of a hereditament shown in the list, and

(d) not made by reason of a material change of circumstances which occurred on or after the day on which the list was compiled.

(10) Where an over-payment has been made and the condition in sub-paragraph (5) is met, appropriate adjustments for the purposes of this paragraph shall be as follows—

(a) where, save for the adjustments, a payment would fall to be made by the relevant authority to the Secretary of State which exceeds or equals the difference identified in sub-paragraph (5)(b), the amount payable by the authority shall be reduced by the amount of the difference;

(b) where, save for the adjustments, a payment would fall to be made by the relevant authority to the Secretary of State which is less than the difference identified in sub-paragraph (5)(b), the Secretary of State shall pay to the authority the amount of the difference less the amount of the payment which would have fallen to be made by the authority;

(c) where, save for the adjustments, a payment would fall to be made by the Secretary of State to the relevant authority, the amount payable by the Secretary of State shall be increased by the amount of the difference identified in sub-paragraph (5)(b).

(11) Where an over-payment has been made and the condition in sub-paragraph (6) is met, appropriate adjustments for the purposes of this paragraph shall be as follows—

(a) where, save for the adjustments, a payment would fall to be made by the relevant authority to the Secretary of State which exceeds or equals the sum of the net payments described in sub-paragraph (6)(a) and (6)(b) respectively, the amount payable by the authority shall be reduced by the amount of the sum of those payments;

(b) where, save for the adjustments, a payment would fall to be made by the relevant authority to the Secretary of State which is less than the sum of the net payments described in sub-paragraph (6)(a) and (6)(b) respectively, the Secretary of State shall pay to the authority the amount of the sum of those payments less the amount of the payment which would have fallen to be made by the authority;

(c) where, save for the adjustments, a payment would fall to be made by the Secretary of State to the relevant authority, the amount payable by the Secretary of State shall be increased by the sum of the net payments described in sub-paragraph (6)(a) and (6)(b) respectively.

(12) Where an under-payment has been made, appropriate adjustments for the purposes of this paragraph shall be as follows—

(a) where, save for the adjustments, a payment would fall to be made by the relevant authority to the Secretary of State which exceeds or equals the difference identified in sub-paragraph (7)(b), the amount payable by the authority shall be reduced by the amount of the difference;

(b) where, save for the adjustments, a payment would fall to be made by the relevant authority to the Secretary of State which is less than the difference identified in sub-paragraph (7)(b), the Secretary of State shall pay to the authority the amount of the difference less the amount of the payment which would have fallen to be made by the authority;

(c) where, save for the adjustments, a payment would fall to be made by the Secretary of State to the relevant authority, the amount payable by the Secretary of State shall be increased by the amount of the difference identified in sub-paragraph (7)(b).

(13) For the purposes of this paragraph, reference to a billing authority’s non-domestic rating income for a given year is reference, whether direct or indirect, to the amount which was or will be payable to the authority in respect of the year under section 43 or 45, or which would have been or would be so payable in certain circumstances.

(14) No adjustment is to be made under this paragraph in respect of any over-payment or under-payment to which appropriate adjustments under this paragraph have applied under calculations for a previous year.”

LORD SMITH OF LEIGH

39

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

LORD JENKIN OF RODING

40

Page 28, line 15, at end insert “, but the basis of calculation as amended remains subject to paragraph 10A”

BARONESS HANHAM

41

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

42

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”

43

Page 33, leave out lines 10 to 13 and insert—

“( ) if the authority is subject to a requirement imposed by a direction under paragraph 40 (direction to make calculations or supply information) or by or under regulations under paragraph 40A (regulations about calculations and supply of information) for the purposes of this paragraph, as soon as is reasonably practicable after the time for compliance with that requirement,”

LORD SMITH OF LEIGH

44

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

45

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

46

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”

47

Page 34, leave out lines 28 to 31 and insert—

“( ) if the authority is subject to a requirement imposed by a direction under paragraph 40 (direction to make calculations or supply information) or by or under regulations under paragraph 40A (regulations about calculations and supply of information) for the purposes of this paragraph, as soon as is reasonably practicable after the time for compliance with that requirement,”

LORD JENKIN OF RODING

LORD MCKENZIE OF LUTON

LORD BEECHAM

48

Page 34, line 34, at end insert—

“(3A) The calculation must ensure that the relevant authority is fully compensated for any losses due to rating appeals caused by rating errors made by the Valuation Office Agency.”

LORD MCKENZIE OF LUTON

LORD BEECHAM

49

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.”

50

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

51

Page 35, line 14, leave out “(an “in-year calculation”)”

52

Page 35, line 24, leave out “an in-year” and insert “a”

53

Page 35, line 26, leave out “an in-year” and insert “the”

54

Page 35, line 31, leave out “an in-year” and insert “a”

55

Page 35, line 33, leave out “an in-year” and insert “the”

56

Page 35, line 39, leave out “an in-year” and insert “a”

LORD JENKIN OF RODING

LORD MCKENZIE OF LUTON

LORD BEECHAM

57

Page 37, leave out lines 26 to 32 and insert—

“(2) Before making such a determination, the Secretary of State must consult such relevant authorities and bodies representing relevant authorities as the Secretary of State thinks appropriate about whether the Secretary of State should make such a determination.

(3) If, following consultation under sub-paragraph (1), the Secretary of State determines that the amount referred to in sub-paragraph (1) is to be distributed among one or more relevant authorities, the distribution may not be made unless—

(a) the basis on which the Secretary of State intends to make the distribution (“the basis of distribution”) is specified in the local government finance report for the year in question, and

(b) the report is approved by a resolution of the House of Commons.

(4) If a report is approved by resolution of the House of Commons under sub-paragraph (3)(b), the Secretary of State must calculate what amount (if any) falls to be paid to each relevant authority as its share of the amount referred to in sub-paragraph (1).”

58

Page 37, line 37, leave out “regulations” and insert “local government finance report”

BARONESS HANHAM

59

Page 39, line 46, leave out “audit” and insert “certification”

60

Page 40, line 1, leave out from “a” to “does” in line 2 and insert “certified calculation or certified information”

61

Page 40, line 4, after “or” insert “certified”

62

Page 40, line 8, at end insert—

“( ) The regulations may confer power on the Secretary of State to give directions about the certification of calculations or information.”

63

Page 40, line 43, leave out from beginning to end of line 2 on page 41

64

Page 41, line 5, leave out from “designation” to end of line 6

65

Page 41, line 31, leave out from “consult” to end of line 32 and insert “the authorities covered by the designation.”

66

Page 41, line 34, leave out from “notify” to end of line 36 and insert “those authorities.”

BARONESS KRAMER

LORD TOPE

LORD SHIPLEY

67*

Page 43, leave out line 27 and insert—

“37 (1) The Secretary of State may provide for the designation of areas in which certain non-domestic revenues shall be ring fenced to support infrastructure investment financed using tax increment finance and other mechanism, and in order to do so may—”

68*

Page 44, line 15, at end insert—

“(e) provide that any indebtedness incurred against such amount shall not be treated as a liability of the public sector through adjustments to the accounts and audit regulations made under section 27 of the Audit Commission Act 1998”

69*

Page 44, leave out lines 29 to 33 and insert—

“(5) The regulations—

(a) must specify the date on which the designation takes effect (which may be any date in the future), and

(b) may specify the years for which the designation has effect.”

LORD JENKIN OF RODING

70

Page 46, line 8, at end insert—

“( ) Without prejudice to the generality of this paragraph, the regulations may provide that a designated class may include a hereditament which consists of an investment to provide electricity generation from a renewable or other low carbon source, including nuclear power.”

BARONESS KRAMER

LORD TOPE

LORD SHIPLEY

71*

Page 46, line 39, at end insert—

“(10A) The consent of the Treasury permits all schemes proposed by local authorities which meet the conditions specified in the regulations.”

BARONESS HANHAM

72

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

73

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.”

BARONESS HANHAM

74

Page 47, line 19, after “Schedule” insert “or Part 6 (funds) so far as applying to non-domestic rates”

75

Page 47, line 26, leave out “audited” and insert “certified”

76

Page 47, line 37, leave out “by an audit”

77

Page 48, line 5, at end insert—

“Regulations about calculations and supply of information

40A The Secretary of State may by regulations—

(a) make any provision that could be made by a direction under paragraph 40;

(b) make provision for the Secretary of State to give a direction that could be given under that paragraph;

(c) make any provision made by that paragraph in relation to a direction under it—

(i) in relation to provision made by regulations under this paragraph, or

(ii) in relation to a direction given by the Secretary of State under regulations under this paragraph.”

After Clause 4

LORD JENKIN OF RODING

LORD MCKENZIE OF LUTON

LORD BEECHAM

78

Insert the following new Clause—

“National business rate policy changes: consultation

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

LORD MCKENZIE OF LUTON

LORD BEECHAM

79

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.”

80

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.”

81

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.”

82*

Insert the following new Clause—

“Refunds of non-domestic rates

Any refund of non-domestic rates borne by local authorities and arising from successful appeals relating to periods prior to 1st April 2013 shall be recoverable from—

(a) any undistributed business rates at 31st March 2013, and then

(b) the central share.”

Schedule 3

BARONESS HANHAM

83

Page 56, line 5, at end insert—

“( ) In subsection (1)(b), after “major precepting authority” insert “or the Secretary of State”.”

84

Page 56, line 27, at end insert—

“( ) under provision made by regulations under paragraph 9A of that Schedule (regulations about payments by billing authorities to major precepting authorities out of deductions from the central share),”

85

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),”

86

Page 56, line 35, at end insert—

“( ) In subsection (2)(b), after “major precepting authority” insert “or the Secretary of State”.”

87

Page 57, line 11, at end insert—

“( ) under provision made by regulations under paragraph 9A of that Schedule (regulations about payments by billing authorities to major precepting authorities out of deductions from the central share),”

88

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),”.”

89

Page 57, line 31, at end insert—

“(2B) The Secretary of State may by regulations make provision requiring a billing authority to transfer from its general fund to its collection fund such amounts as may be specified in or determined in accordance with the regulations by reference to sums received by the authority in respect of non-domestic rates under this Act.””

90

Page 57, line 34, leave out ““, (3) or (4A)” substitute “or (3)”” and insert ““97(1), (3) or (4A) above” substitute “97(1) or (3) or regulations under section 97(2A) above””

91

Page 57, line 34, at end insert—

( ) In subsection (1)(c), after “97(2) or (4) above” insert “or regulations under section 97(2B) above”.

( ) In subsection (3)—

(a) in paragraph (b)(i), for “major precepting authorities” substitute “one or more relevant authorities”,

(b) in paragraph (c), for “any major precepting authorities” substitute “prescribed relevant authorities”,

(c) in each of paragraphs (d) and (f), for “major precepting authority” substitute “relevant authority”.”

92

Page 57, line 35, at end insert—

“( ) Before subsection (4) insert—

“(3C) In subsection (3) “relevant authority” means—

(a) a major precepting authority, or

(b) the Secretary of State.

(3D) Regulations under subsection (3) may make separate provision in relation to council tax and non-domestic rates, with the effect that—

(a) more than one estimate is to be made by a billing authority of whether there is a deficit or surplus in its collection fund for a financial year and, if so, of the amount of the deficit or surplus,

(b) each estimate takes into account different amounts to be paid into or met from that fund, and

(c) each estimate has different consequences as to the payments to be made, or other functions to be exercised, by the billing authority, major precepting authorities or the Secretary of State.””

93

Page 57, line 42, at end insert ““regulations under section 99(3) above”

94

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

95

Page 58, line 1, at end insert ““regulations under section 99(3) above”

96

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

97

Page 58, line 14, leave out from “etc)” to end of line 21 and insert “—

( ) at the end of paragraph (b) insert “or”, and

( ) omit paragraph (c) and the “or” at the end of that paragraph (which provides for certification of calculations under Schedule 8 to the LGFA 1988).”

Before Clause 9

BARONESS HOLLIS OF HEIGHAM

98

Insert the following new Clause—

“Council tax benefit

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

Clause 9

BARONESS HOLLIS OF HEIGHAM

99

Page 5, line 28, at end insert—

“( ) The Secretary of State shall issue guidance to local authorities as to what persons or category of persons shall be deemed to be vulnerable.”

BARONESS HOLLIS OF HEIGHAM

LORD BEST

100

Page 5, line 28, at end insert—

“( ) Any dwelling which receives a band reduction in its council tax by reason of disability adaptations (or in the case of Band A properties, the relevant discount), shall not be deemed to be under-occupied for the purposes of housing benefit.”

BARONESS HOLLIS OF HEIGHAM

101

Page 5, line 28, at end insert—

“( ) No council tax reduction scheme shall have a taper which, when combined with the taper of universal credit, produces a withdrawal rate for the claimant of 95% or more.”

BARONESS LISTER OF BURTERSETT

102

Page 5, line 34, at end insert—

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

BARONESS DONAGHY

103

Page 5, line 34, at end insert—

“( ) In exercising its powers under subsection (2)(a) and (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.”

Schedule 4

LORD JENKIN OF RODING

LORD MCKENZIE OF LUTON

LORD BEECHAM

104

Page 59, line 43, at end insert—

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

LORD JENKIN OF RODING

105

Page 61, leave out lines 1 and 2

106

Page 62, leave out lines 14 to 19

After Clause 10

LORD BEST

107*

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).”

Clause 14

BARONESS LISTER OF BURTERSETT

108

Page 13, line 33, at end insert—

“(4) The billing authority shall seek to ensure that all persons eligible for council tax reduction shall apply for such reduction.

(5) Any increase in expenditure by the authority in consequence of subsection (4) above, which exceeds 10% of its 2012 grant, shall be re-imbursed by the Secretary of State.”

After Clause 14

BARONESS HOLLIS OF HEIGHAM

109

Insert the following new Clause—

“Consultation on new bands of council tax

The Secretary of State shall consult with local government on the introduction of a new higher (I) band, or bands, of council tax.”

Clause 18

LORD JENKIN OF RODING

110

Page 19, line 5, at end insert—

“(1A) Transitional provision as described in subsection (1) must be made to ensure that, where—

(a) a billing authority is required to make a repayment or credit by regulations made under paragraph 2(2)(j) of Schedule 9 to the LGFA 1988, and

(b) the repayment or credit is made in respect of a financial year for which the provisions of Schedule 8 to the LGFA 1988 applied in the form in which they applied before the passing of this Act,

the amount of the repayment or credit is credited to payments by the authority under Schedule 7B to the LGFA 1988 as inserted by this Act, insofar as that amount has not been or would not be paid to or otherwise credited to the benefit of the authority by the Secretary of State under any other provision made by or under the LGFA 1988.”

After Clause 18

BARONESS HOLLIS OF HEIGHAM

111

Insert the following new Clause—

“Review of council tax reduction schemes

(1) The Secretary of State shall make provision for an independent review of council tax reduction schemes, to consider their effectiveness, efficiency, fairness and transparency and their impact on the localism agenda and to make recommendations as to whether such schemes should be brought into universal credit.

(2) A review under subsection (1) shall take place three years after this Act comes into effect.”

Prepared 9th October 2012