HC Deb 27 June 1955 vol 543 cc125-8
Mr. K. Thompson

I beg to move, in page 6, line 5, at the end to insert: (5) Where, immediately before the coming into force of the first new valuation list for a rating area, a resolution of the rating authority (in this subsection referred to as "the old resolution") is in force under subsection (I) of section eleven of the Act of 1925, the rating authority may by resolution under this subsection ditect that hereditaments which—

  1. (a) were included in the class defined in the old resolution immediately before the new valuation list came into force, but
  2. (b) have ceased to be included in that class by reason that, in the new valuation list, there have been ascribed to them rate-able values higher than the rate-able value by reference to which the class was defined, but not exceeding such maximum amount (whether within or above the limit imposed by subsection (1) of the said section eleven) as may be specified in the resolution under this subsection,
shall be treated as included in the class defined in the old resolution while the resolution under this subsection remains in force: Provided that a resolution under this subsection, if not previously rescinded, shall cease to have effect on the rescission of the old resolution, or when the first new valuation list for the rating area is superseded by a subsequent valuation list, whichever first occurs. (6) While a resolution under the last preceding subsection is in force, paragraph (b) of subsection (1) of the said section eleven (which requires an allowance to be made to owner-occupiers in certain cases) shall apply with the substitution, for the reference to the rateable value mentioned in that paragraph, of a reference to the maximum amount specified in the resolution under the last preceding subsection. Our present legislation requires that the occupier of the property shall pay the rates levied on that property except in so far as the Act of 1925 allows that a local authority may, by resolution, provide that the rates of properties below certain limits may be paid by the owner of the property, he recovering them from the occupier in due course, and in weekly instalments. That is known as compounding of rates. If the prognostications of my right hon. Friend about the effects of the present valuation come about, and valuations on house property as well as other property are raised considerably, many of the dwelling-houses which at present enjoy the somewhat questionable benefits of compounding will be raised above the limits at present in operation in various local authority areas.

The purpose of my Amendment is to enable a local authority to pass a resolution which will raise the limits for the payment of rates by compounding, so that all those properties which are now below the present limit may be included in the new limit. I am sure that the Committee would not wish that there should be any great change in the way in which rates are levied, particularly on small residential property. I hope, therefore, that my right hon. Friend will accept this Amendment, together with a somewhat consequential one which appears on the Order Paper in connection with a Schedule to which I shall refer later.

The Parliamentary Secretary to the Ministry of Housing and Local Government (Mr. W. F. Deedes)

As my hon. Friend the Member for Liverpool, Walton (Mr. K. Thompson) has indicated, there is a need for this Amendment, which I advise the Committee to accept, due to the fact that the compounding arrangements may very well be altered by the higher valuations.

The effect of the Amendment is to enable the local authority, by resolution, where compounding is now taking place, to continue it at the higher rate. The consequential Amendment which follows in the Schedule and is supplementary to this provision, and which will raise the future limits for compounding on property not at present compounded, together with this Amendment, will have the following effect. Neither the owners nor the tenants will have to rearrange the existing arrangements, which many tenants possibly know nothing about but which we wish to avoid disturbing, both from the point of view of the owners and of the tenants.

It will mean that for the period of the first new valuation list these arrangements can continue undisturbed as provided by the 1953 Act. Of course, when the basis for assessing dwelling-houses is changed, compounding arrangements will have to be reviewed, but that will be a separate matter. Between now and then, this ensures that arrangements now in being can continue without disturbance to the parties concerned.

Mr. Skeffington

We on this side of the Committee welcome the Amendment because many of us feared that, as a result of the abolition of the draft list and revaluations, there would be a change in the person paying rates in a number of cases. At any rate the question of keeping the position unaltered for the new valuation is secure. We shall then have to look at the position in the light of what happens in future valuations, but this seems to be a useful Amendment keeping the status quo for existing compounding arrangements.

Mr. Ede

I join with my hon. Friends in welcoming the attitude of the Minister towards this Amendment, particularly because it means that the same kind of property is to be treated in the same way in future as it has been heretofore. I hope that it will also extend to a point which was raised in the Second Reading debate on the Bill when the hon. Gentleman was replying about percentage reductions between gross and net. At that time he did not seem to be quite aware of the point that I was making, which was precisely the principle now adopted here. I welcome its admission because I hope that even this Government may show some little consistency in the application of principles.

Amendment agreed to.

Clause, as amended, ordered to stand part of the Bill.