Select Committee on Transport, Local Government and the Regions Memoranda


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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Prepared 8 July 2002