HC Deb 26 June 1984 vol 62 cc863-5

Lords amendment: No. 13, after clause 13 insert the following new clause— .—(1) Rules under section 113 of the General Rate Act 1967 may require a rating authority to serve with any demand note for a rate a notice containing information—

  1. (a) as to the past or proposed expenditure of—
    1. (i) the rating authority; or
    2. (ii) any authority by which a precept has been issued to the rating authority, and as to the financing of that expenditure; and
  2. (b) as to any increase or reduction in the rates made by the rating authority or in the precepts issued to it.
(2) Rules under that section may require an authority having power to issue precepts to serve notices on ratepayers in its area containing information—
  1. (a) as to its past or proposed expenditure and as to the financing of that expenditure; and
  2. (b) as to any increase or reduction in the precepts issued by the authority.
 (3) Rules made by virtue of this section may make different provision for different cases; and any notice required to be served by rules made by virtue of this section shall be in such form (if any) as the rules may prescribe. (4) An authority having power to issue precepts to a rating authority shall supply that authority with such information as is reasonably necessary for enabling it to comply with any requirements imposed by rules made by virtue of subsection (1) above; and a rating authority shall supply an authority having power to issue precepts to it with such information as is reasonably necessary for enabling the precepting authority to serve any notices required by rules made by virtue of subsection (2) above.

Mr. Straw

I beg to move, as an amendment to the Lords amendment, amendment (a), in line 9, after 'to' insert 'or levy imposed upon'.

Mr. Deputy Speaker

With this it will be convenient to take the following amendments to the proposed amendment:

  1. (b) in line 11, after 'to', insert 'or levies imposed'.
  2. (c) in line 1,3, after 'precepts', insert—or impose levies'.
  3. (d) in line 17, after 'issued' insert 'or levies imposed'.
  4. (e) in line 23, after second 'to', insert 'or impose levies upon'.
  5. (f) in line 28, after second 'to', insert 'or impose levies upon'.
  6. (g) in line 29, after 'precepting', insert 'or levying'. Lords amendment No. 33.

Mr. Straw

Lords amendment No. 13 would insert a new clause requiring authorities to give supplementary information about their expenditure record and proposals. Although this is a further burden on already hard-pressed authorities, we do not especially disagree with it as we believe in far greater openness of Government than do the Minister and his party.

As the provisions stand, however, there would be no requirement on London Regional Transport to provide equivalent information about its levy, although it will be raising the equivalent of a rate on the ratepayers of London. We believe that what is sauce for the goose is sauce for the gander. If it is right that local authorities should provide such detailed information to their ratepayers, by the same token LRT should provide similar information because its finances will be met by a levy and for this purpose it will be in the same position as a local authority.

The Minister will no doubt point out that through the Secretary of State for Transport LRT will be accountable to this House, but that is no substitute for the provision of information to local ratepayers as it is they who will be paying the levy.

Sir George Young

I am glad that the Opposition agree with the purpose of the Lords amendment. It extends the powers of the Secretary of State under section 113 of the General Rate Act 1967 to make rules governing the content of the rate demand notice to cover information related to expenditure, financing and changes in rate or precept levels.

We believe that these powers are necessary to ensure that all ratepayers have access to the kind of background information that the best authorities already provide. We shall discuss the new rules with the local authority associations and other interested parties and we expect to use the extended powers next year to bring new rules into effect for 1986–87 rate demands. The new rules will incorporate the changes already proposed in the rates White Paper to ensure that ratepayers are aware of the proportion of their individual rate bills attributable to the levy made by each major authority in their area.

I hope that the House will agree that the amendment, with the consequential amendment to the long title, is a sensible and desirable extension of my right hon. Friend's powers to make rules in relation to rate demands and will enable us to improve the accountability of local authorities to their ratepayers.

The hon. Gentleman argued that accountability to the House was no substitute for accountability to ratepayers. I have to disagree with him. It is right that my right hon. Friend the Secretary of State for Transport is required to account for any levy that he makes for the purpose of financing LRT. The London Regional Transport Bill provides that by making him accountable to Parliament.

Clause 13 requires the Secretary of State to lay an order before the House each year specifying the amount in the pound to be levied, the factors that he has taken into account in fixing levies and the means by which the amount has been calculated. Clause 13 also provides that the annual order should be subject to affirmative resolution. There is likely, therefore, to be a debate on all aspects of the ratepayers' levy, including the policies that underlie it. That means that my right hon. Friend will have to account to Parliament fully and specifically for the levy each year. That is why the LRT levy is not covered by clause 14.

Our new rule will require the total bill to be split into its component parts, which will ensure that individual ratepayers are aware of the amount required in respect of the LRT levy. I hope that the House will agree that it will not be right to extend the provisions of clause 14 to enable my right hon. Friend to make rules about the provision for ratepayers of further information about levies, especially as he would never use that power, for the reasons that I have outlined. I hope that the House will reject the amendment.

Question put and negatived.

Lords Amendment No. 13 agreed to.

Lords amendment No. 14 agreed to. [Special Entry.]

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