HC Deb 05 July 1989 vol 156 cc298-300
11. Mr. Kirkwood

To ask the Secretary of State for Scotland what recent representations he has received about the impact of the standard community charge in self-catering tourist flats.

Mr. Lang

My right hon. and learned Friend has received a number of such representations.

Mr. Kirkwood

Is the Minister aware that the border areas tourist authority which conducted a survey of 500 properties in the retail self-catering sector of tourism in the area, found that the owners of such properties are paying an additional £200 a year as a direct result of the standard community charge? Is it not slightly ludicrous that a unit containing 10 self-catering flats on one site is subject to the commercial rating system, whereas 10 separate units in different locations must pay 10 individual standard community charges? Will he consider changing the regulations so that all units are subject to commercial rates?

Mr. Lang

The hon. Gentleman should refer the increased costs faced by such organisations to regional and district councils in his area, because they have deliberately chosen to impose a standard charge as high as twice as much as is open to them. Had they imposed a multiplier of one instead of two, many of the problems faced by self-catering establishments would not have arisen.

Mrs. Margaret Ewing

Is the Minister aware that not only is the tourist industry being seriously affected by this aspect of the legislation but that it is also causing serious financial hardship to organisations that work for the disabled? Is he aware that the Association of Spina Bifida and Hydrocephalus, which was bequested two small properties, is paying standard community charge on them, thereby making it increasingly difficult for it to offer respite to the carers of disabled people?

Mr. Lang

Such a development would, indeed, be extremely regrettable. The standard community charge accounts for about 0.3 per cent. of total local authority revenue. The choice is open to them of imposing a multiplier of one instead of two, which would halve the burden faced by such organisations.

Mr. Buchanan-Smith

Will my hon. Friend acknowledge that this is a problem? The impact of the standard community charge on the provision of self-catering and other tourist accommodation cuts right across other Government schemes, such as farm diversification. Will he acknowledge that this problem requires a review, and will he undertake to instigate such a review?

Mr. Lang

As I have made clear on a number of occasions, we are constantly considering all aspects of the community charge legislation. Nevertheless, I urge my right hon. Friend to bring to the attention of his district and regional councils the fact that the solution lies largely in their own hands.

Mr. Wilson

Will the Minister consider the possibility that his bland refusal to offer any movement on a non-ideological point of common sense relating to the standard community charge accounts for the standing of his party in Scotland? Nobody believes the Minister when he says that the standard community charge is the responsibility of local authorities. Everyone knows that the Scottish Office calculations for the poll tax were based on the assumption that a multiplier of two would be used. Will the Minister accept the commonsense solution and allow local authorities to vary the standard community charge according to the type of properties and the level of use?

Mr. Lang

The hon. Gentleman's suggestion would take us back close to a property tax. The assumption made in the distribution of revenue support grant was in line with normal practice and carried no implications for, or recommendation on, the decisions by local authorities. Indeed, had the multiplier assumption been one instead of two, six of the nine regional authorities in Scotland would have had less revenue support grant, rather than more.

Forward to