Contribution
My Lords, Amendments 3,18, 32 and 37, which were spoken to by the noble Lord, Lord Jamieson, on behalf of the noble Baroness, Lady Scott of Bybrook, and Amendment 43, tabled by the noble Lord, Lord Thurlow, are concerned with the role of local authorities in determining the application of the higher and lower multipliers. Amendment 3 seeks to provide local authorities with discretion over the application of the higher multiplier, and Amendments 18, 32, 37 and 43 are concerned with who sets the definition of a qualifying RHL hereditament.
Currently, the Bill includes a power for qualifying RHL hereditaments to be defined in regulations by the Treasury, as I have said. Our intention is for the definition broadly to follow that currently used in the retail, hospitality and leisure relief scheme. The criteria for the current relief scheme are contained in guidance from this department and are implemented by local authorities. Ultimately, under the current relief scheme, local authorities have the final say over and discretion about who should be awarded the relief. I understand that that is the type of arrangement that the amendments are seeking to reinstate from April 2026 for the lower RHL multipliers.
I should, for completeness, explain to the Committee that Amendment 43 replaces the Treasury’s power to define RHL on the central rating list with the relevant local authority. In fact, the central rating list is operated by the Secretary of State for my department and does not require any local authority involvement. Instead, Amendment 43 would create an unworkable section of the Bill. This would be due to the fact that central list hereditaments cross multiple local authority areas, which would create a lack of clarity around the responsibility. In addition, this amendment would inappropriately insert local authorities into the central list process. I do not think that this is the intention of the noble Baroness. I think it is important to clarify there are currently no eligible properties to be prescribed for the lower multiplier on the central list, and nor would we expect there to be in future.
Moreover, I understand from the helpful explanation provided that Amendment 32, tabled by the noble Lord, Lord Thurlow, is, in a similar way to the amendments tabled by the noble Baroness, Lady Scott of Bybrook, seeking to confer on local authorities the power to determine what is a qualifying retail, hospitality and leisure hereditament. However, as drafted, it does not do that. As drafted, Amendment 32 would completely remove the power to define a qualifying retail, hospitality and leisure hereditament in respect of unoccupied properties from the Bill. In essence, it would mean qualifying RHL for unoccupied properties would remain undefined, as the power would not automatically be granted to local authorities.
However, I understand that these amendments are intended to probe the matter of local decision-making, and that is how I have sought to discuss them here today. As noble Lords would expect from me, I fully support efforts to give local authorities more power and discretion in their areas. The Bill does not disturb the already considerable powers that local authorities have to award relief to ratepayers as set out in Section 47 of the Local Government Finance Act 1988.
However, we have to balance this against the needs of businesses. What we hear from businesses is that they really value certainty. They tell us that the current RHL relief scheme, operated through local discretion, does not give them that certainty. We hear that they do not favour a system where a national relief scheme, such as RHL relief, can be delivered differently by different local authorities. It leaves businesses, especially those with multiple stores, unsure as to where and when they will be awarded relief.
The new lower RHL multipliers will therefore operate through a single set of regulations for all of England, made by the Treasury. Those regulations will still be implemented by local authorities, using their local knowledge, but the definition will be set by the Treasury. This is something that businesses in general would support. We will work with local government over the coming year to prepare these regulations. That goes to the direct question asked by the noble Lord, Lord Jamieson, in relation to our relationships and work with local government; we are doing that already.