Lord Fox (LD)

My Lords, I think we have all agreed that the Bill is tinkering with what is essentially a broken system. The Labour Party clearly knew that because it pledged in its manifesto to reform the system, so it understands that the system is broken. Speaking to the last group, the noble Lord said that businesses need certainty and that the Bill will give them it. The certainty is that they will be paying more in business rates in two years than they are now. They know the direction of travel, but they do not know how fast they will get there or how much they will be paying. We know that, no matter how broken it is now and irrespective of its impact, the Government plan to keep this system in place for three years. I think that is what I heard the Minister say. On the one hand, I suggest that this is more than a little cavalier. As the noble Lord, Lord Thurlow, has explained, there may well be quite a number of chickens that come home to roost during that three-year period. On the other hand, it gives the Government time to carry out their much-vaunted detailed review, to properly consult and to legislate for a better and fairer system that genuinely encourages investment. Amendment 47 would require the Chancellor to review the effects of the Bill on wider non-domestic rating policy and to consider alternatives. I am sure the Minister would agree that productive capital and investment should not be the target for this tax. I suggest that one way of ensuring this is to levy rates on the value of the commercial sites and also to remove exemptions for empty or derelict commercial premises. Revaluations should happen on a more regular basis, and I think we should agree through consultation how often that should be. The nub of this is that anything a tenant invests in their business should not increase the site rateable value. If it does, which is where we are now, you are taxing investment and growth, not the actual site value. These are the ideas and sorts of things that the Government have time to consider. They have time to radically throw this system up in the air and make sure that what comes down is fairer, rewards growth and investment, and makes sure that the right people are paying the right amount. If we are to have this tinkered-about system for three years, can the Minister assure your Lordships that the time will be used usefully to deliver a system that is fit for purpose and delivers growth across our country?