Memorandum by Institute of Revenues Ratings
and Valuation (IRRV) (LGB 27)
The Institute is pleased to be given the opportunity
to submit this brief response to the Local Government Bill which
was published on 13 June 2002.
BORROWING
The Institute supports the proposals concerning
the power to borrow and the control of borrowing. These provisions
are seen by the Institute as part of the determination of central
government to give local government more opportunity to manage
its affairs.
CREDIT ARRANGEMENTS
The Institute supports the clauses concerning
credit arrangements and again sees this as a positive step towards
local government independence.
CAPITAL RECEIPTS
The Institute supports the proposals on capital
receipts.
INVESTMENT
Again the Institute believes the clarification
of the rules concerning investment are welcome and particularly
applauds the desire to preserve the safeguards of the existing
system and at the same time allowing greater flexibility and greater
discretion.
MISCELLANEOUS AND
SUPPLEMENTARY PROVISIONS
The Institute generally supports these provisions
and has no particular comments to make.
ACCOUNTS
The Institute supports the proposals concerning
accounting practices and the revenue account.
FINANCIAL ADMINISTRATION
The Institute supports the proposals on minimum
reserves and particularly welcomes the proposals in relation to
budget calculations and budget monitoring. The Institute further
believes that the requirement to require the Chief Financial Officer
to make a report on the robustness of estimates and the adequacy
of reserves will strengthen local government finance.
GRANTS
The Institute welcomes the centrification of
the grant process and the introduction of a single grant. It supports
the view that this will improve understanding and transparency
of the grant system.
OTHER GRANTS
The Institute supports the decision to make
grant payments to further the desire to deliver Best Value in
Parishes and Communities.
BUSINESS IMPROVEMENT
DISTRICTS
The Institute strongly supports the practice
of Business Improvement Districts (BIDs). The Institute further
believes that the introduction of BIDs will strengthen the involvement
of the business community in local matters and may in time prove
to be a valuable tool in the regeneration and development of local
facilities. The Institute would wish to be involved in the detailed
arrangements for developing the BIDs proposals and will be making
further detailed written submissions on this matter.
NON-DOMESTIC
RATES
The Institute is the only professional body
that covers all aspects of non-domestic rates. The Institute will
be making full written submissions on all aspects of the Bill
concerning this matter. The initial reaction of the Institute
to the proposals is positive. The change in the dates for submission
of valuation lists is a constructive suggestion which will aid
the democracy of the rating system and enable ratepayers and their
representatives to give proper consideration to their rateable
values. The Institute supports the introduction of small business
relief and will be making detailed proposals which will assist
the smooth implementation of this important provision.
The Institute welcomes the proposals to give
flexibility in the calculation of the non-domestic rating multiplier
and will make detailed submissions on this issue.
TRANSITIONAL RELIEF
The Institute understands the desire of government
to maintain transitional relief systems and accepts the government's
intention to contain any schemes within the life of the valuation
list. The Institute will respond in detail to any proposed transitional
schemes and will offer the government whatever support it needs
to ensure that those schemes are effective. However, notwithstanding
these supportive statements, the Institute believes that the government's
long-term aim should be to remove the need for transitional rate
relief schemes by the introduction of more regular revaluations.
The Institute is confident that the Valuation Office Agency will
in the near future be able to deliver frequent regular revaluations
which can be assisted by using advanced computer-aided appraisal
techniques. The Institute would be pleased to work with government
and the Valuation Office Agency in achieving these aims.
RATING OF
METERS
The Institute welcomes the intention to review
the rating of meters. This will clarify an uncertain area of rateability
and will give the professions an opportunity to fully investigate
a potential source of extra local authority revenue.
AGRICULTURAL EXEMPTIONS
The Institute strongly supports the proposals
on the expansion of the exemption for agricultural buildings and
will again make itself available to assist the government in the
introduction of these proposals.
REMOVAL OF
THE POWER
TO PRESCRIBE
RATEABLE VALUES
The Institute supports the government's commitment
to end prescription with effect from 2005 and would again offer
the government its active support in implementing this new provision.
COUNCIL TAX
The Institute welcomes the introduction of a
statutory revaluation cycle for Council Tax and also the power
to change the number of valuation bands. The Institute will be
carrying out research into this important area and again would
welcome the opportunity to work closely with the government on
this matter.
The three suggested amendments to the rules
concerning the enforcement of council tax are welcomed by the
Institute. These changes will assist local authorities in the
administration of the enforcement process.
The Institute welcomes the proposals concerning
students and joint and several liability.
HOUSING REVENUE
ACCOUNT AND
HOUSING BENEFIT
SUBSIDY
The Institute notes the government's plans to
alter the rules in relation to Housing Benefit Subsidy and would
welcome the opportunity to discuss these matters in more detail
as these proposals are developed.
CHARGING AND
TRADING
The Institute welcomes the new proposals to
give powers to local authorities to charge for discretionary services
and in particular the powers relating to trading. The Institute
believes that these proposals will give enterprising local authorities
the opportunity to spread good practice.
PERFORMANCE CATEGORIES
The Institute welcomes the proposals concerning
performance categories.
VALUATION TRIBUNAL
SERVICE
The Institute welcomes the introduction of a
body corporate to be known as The Valuation Tribunal Service.
In creating this service, the government must take care to protect
the important role that the appeals process plays in the administration
of property taxes. The government must ensure that the service
is properly funded to enable it to deliver a professional and
customer-centred service.
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