Non-Domestic Rating (Lists) (No. 2) Bill

Lord Reid of Cardowan Excerpts

2nd reading & 2nd reading (Hansard) & 2nd reading (Hansard): House of Lords
Monday 18th January 2021 Lords Chamber

[Lord Reid of Cardowan (Lab) [V]]

My Lords, I thank the Minister for his introductory remarks, and, like many others, I support these Bills. I will confine my remarks to the Non-Domestic Rating (Lists) (No. 2) Bill, not least because the other Bill—and the important subject it raises—has been dealt with comprehensively and succinctly by my noble friend Lady Andrews and a number of others, embellished by the hygiene history of Saltaire given by the noble Lord, Lord Wallace. It is always a pleasure to follow him.

Like other noble Lords, I fully understand the need for the measures contained in the Bill. In effect, in summary they will help ensure that future business rates will better reflect the potential effect of the Covid-19 pandemic on the commercial property market by postponing the date of the next business rates revaluation until April 2023. It seems to make sense—not least to the business community affected—to take into account the effects of changing market conditions, and that is why I will support the Bill. But perhaps the Minister could respond to one or two questions and queries that I have regarding the Bill.

First of all, it seems to me that the delay cuts both ways. Does it not mean, for instance, that some businesses badly affected by the pandemic will have to tolerate their existing burden of rates—assessed and set in perhaps much more benign circumstances some years ago—for potentially an additional two years, while their present commercial reality may be much changed for the worse precisely because of the pandemic? To address this, could not the new valuation and assessment, taking into account the effects of the pandemic, be carried out in a much shorter time than the additional two years outlined in the Bill? Perhaps the Minister could tell us.

Secondly, as we have heard on several occasions, the Government are presently undertaking a fundamental review of business rates and, as part of that exercise, they are considering the frequency of future revaluations. Can the Minister tell us what specific implications, if any, today’s Bill might have on that review? Can he assure us, for instance, that the review will not be unduly delayed because of the measures we are considering today, or are we to assume, as I did from his opening remarks, that there has already been a delay on this, partly—presumably—because of the attention being given to the pandemic, including those aspects which relate to the present Bill?

Thirdly, will the additional time being allowed by this Bill permit a consideration of wider changes in market conditions outside of those directly springing from the pandemic? Is it to be exclusively centred in its consideration on the pandemic itself, or, for instance, are the short-term effects of Brexit, which may well prove as deleterious as the pandemic itself for some businesses, to be taken into account?

Finally, in supporting these measures, I should say that, as others have stressed, while they are a common-sense response to a temporary and, I hope, unique challenge—the Covid-19 pandemic—they do not provide a long-term solution to the recurrent problems and criticisms associated with the present valuation process, with which all of us are very familiar. That will be provided only by the review and reform of the whole process mentioned by the Minister. I hope that the Minister can assure myself and all the other noble Lords who have raised this that it will be a thoroughgoing review, followed by the expeditious implementation of the necessary and appropriate reforms, and that that is the Government’s prime longer-term objective.