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Michie, Bill (Sheffield Heeley)

Molyneaux, Rt Hon James

Moonie, Dr Lewis

Morgan, Rhodri

Morris, Rt Hon A. (W'shawe)

Morris, Rt Hon J. (Aberavon)

Mowlam, Marjorie

Mullin, Chris

Murphy, Paul

Nellist, Dave

Oakes, Rt Hon Gordon

O'Brien, William

O'Hara, Edward

O'Neill, Martin

Orme, Rt Hon Stanley

Patchett, Terry

Pendry, Tom

Pike, Peter L.

Prescott, John

Primarolo, Dawn

Quin, Ms Joyce

Radice, Giles

Randall, Stuart

Redmond, Martin

Rees, Rt Hon Merlyn

Reid, Dr John

Richardson, Jo

Robertson, George

Robinson, Geoffrey

Rogers, Allan

Rooker, Jeff

Rooney, Terence

Ross, Ernie (Dundee W)

Rowlands, Ted

Ruddock, Joan

Sedgemore, Brian

Sheerman, Barry

Sheldon, Rt Hon Robert

Shore, Rt Hon Peter

Short, Clare

Skinner, Dennis

Smith, Andrew (Oxford E)

Smith, C. (Isl'ton & F'bury)

Smith, J. P. (Vale of Glam)

Snape, Peter

Soley, Clive

Spearing, Nigel

Steel, Rt Hon Sir David

Steinberg, Gerry

Stott, Roger

Strang, Gavin

Straw, Jack

Taylor, Mrs Ann (Dewsbury)

Taylor, Matthew (Truro)

Thompson, Jack (Wansbeck)

Turner, Dennis

Vaz, Keith

Walley, Joan

Wardell, Gareth (Gower)

Wareing, Robert N.

Watson, Mike (Glasgow, C)

Welsh, Michael (Doncaster N)

Wigley, Dafydd

Williams, Rt Hon Alan

Williams, Alan W. (Carm'then)

Wilson, Brian

Winnick, David

Wise, Mrs Audrey

Worthington, Tony

Wray, Jimmy

Young, David (Bolton SE)

Tellers for the Noes :

Mr. Frank Haynes and

Mr. Ken Eastham.

Question accordingly agreed to .

Bill read a Second time, and committed to a Standing Committee, pursuant to Standing Order No. 61 (Committal of Bills) .

BUSINESS OF THE HOUSE

Ordered ,

That, at this day's sitting, the Caravans (Standard Community Charge and Rating) Bill and the Ways and Means Motion may be proceeded with, though opposed, until any hour.-- [Mr. Neil Hamilton.]

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Column 119

Caravans (Standard Community Charge and Rating) Bill

Ordered for Second Reading read .

10.15 pm

The Minister for Local Government and Inner Cities (Mr. Michael Portillo) : I beg to move, That the Bill be now read a Second time The Bill is a technical measure, which will be welcomed by a substantial number of holiday caravan owners who, contrary to our intention in 1988, are, as the law now stands, liable to the standard community charge. During the consideration of the Local Government Finance Act 1988, the Government gave a commitment that holiday caravans and the pitches on which they stand would be

non-domestic-rated. It subsequently emerged that an amendment that we made to the then Bill did not have the desired effect and that the owners of many holiday caravans were subject to the standard community charge.

The Bill therefore removes all standard charge liability from the owners of caravans that are not used as a sole or main residence. Instead, it makes all caravan pitches and the caravans occupying them, which are not used as a sole or main residence, subject to non-domestic rates. As we announced on 30 March, the provisions will have effect retrospectively to 1 April 1990. Anyone who has paid the standard charge in respect of a caravan will be entitled to have that sum refunded.

The Bill includes separate provisions for Scotland, and which have the same effect as those south of the border. Two further provisions are proposed that are specific to Scotland. First, because some caravan owners paid the standard charge last year, provision is made for repayment of half that amount. Secondly, a minor change is needed to the existing provisions on the derating of caravans to permit my right hon. Friend the Secretary of State for Scotland--

Mr. Dick Douglas (Dumfermline, West) : Are the Government conceding the principle of retrospectivity for Scotland? If so, should not that example be followed in other measures that might be considered within the Minister's Department?

Mr. Portillo : The Bill has retrospective effect in England, Wales and Scotland. It has an additional retrospective element for Scotland. I do not envisage any connection between this Bill and any other legislation that the Government might or might not bring before the House.

A minor change is needed to the existing provisions on the derating of caravans to permit my right hon. Friend the Secretary of State to deal with the fact that the rateable values of caravans in Scotland are, in general, higher than those in England and Wales. I commend the Bill to the House.

10.19 pm

Mr. William O'Brien (Normanton) : This Bill is another attempt to adjust the poll tax, this time in respect of caravans. It is a further example of the Government, having got the poll tax wrong, making a slight amendment. It may be of help to some, but there are other issues that the Minister must address.

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The Local Government Finance Act 1988 made reference also to holiday chalets on caravan sites, and we were given to understand that chalets were encompassed by the provisions for caravans. In Committee on the Local Government Finance Bill in February 1988, mention was made of the significant problems that would arise in respect of caravans and chalets. The hon. Member for Bournemouth, East (Mr. Atkinson) warned of the serious consequences of neglecting consideration of such properties. Unless we provide for them now, we shall all be back in a few months' time debating them again. The explanatory and financial memorandum states that clause 1 repeals

"other references to caravans in consequence."

It refers also to caravans

"other than those used as a sole or main residence".

The same applies in principle to chalets, so may we presume that chalets are included in the provisions for the standard rate of poll tax that applies to caravans?

The sites concerned are not protected, have planning permission or site licences for holiday use only, or are those on which year-round occupation is prohibited. Those terms apply to chalets just as much as to caravans. The residents of chalets, like those of caravans, have only limited services provided to them by local authorities, so they pay for services that they do not receive. The Government criterion that people should pay for the services provided was an element in our debates on the standard charges. People who own or occupy chalets have no votes in the county or district in which those properties are located, so local authority members are not accountable to them.

Chalet owners in the Southcliffe area of Skipsey in east Yorkshire paid £189 in rates in the year 1988-89. However, the poll tax payable on those same properties is £326 per person. Because the local authority charges double poll tax in line with the Government's formula, a retired single person who occupies a chalet for a few weeks during the year must pay £652 in poll tax, in comparison with £180 under the old rating system. That is an increase in one year of £470.

In Committee on the Local Government Finance Bill, the hon. Member for Bournemouth, West (Mr. Butterfill) said :

"A similar but rather more serious problem will arise with caravans and chalets. I am talking about not the sort of chalet accommodation with which hon. Members may be familiar from such television programmes as Hi-De-Hi', but the rather more sophisticated accommodation that is available in holiday centres. That, too, is a rapidly expanding sector of the leisure and tourism industry in the United Kingdom. Again, the law is not clear and I shall be grateful if my hon. Friend will advise us further. It seems possible that chalets used for that sort of accommodation may be deemed to be residences under the clause and, therefore, subject to a standard community charge with a multiplier of two . Some hon. Members have spoken to me about the matter. It is causing great anxiety because the implied level of taxation would be up to five times the existing rating levels for business premises. I am sure that that is not my hon. Friend's intention. It was made clear earlier that the Government's intention on business premises is to be broadly neutral and that they do not seek to increase the total sum that will be received under the Bill.

If the effect of the provision is as feared by that part of the holiday industry, I hope that my hon. Friend will undertake to look again at the matter."--[ Official Report, Standing Committee E ; 4 February 1988, c. 379.]

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