Business Premises (Valuations) (Hansard, 1 March 1989)

§ 1. Mr. Worthington
To ask the Secretary of State for Scotland when he intends to make a statement on the progress being made by the Scottish assessors in their talks with the Inland Revenue valuers about harmonisation of valuation practices for business premises.

§ The Minister of State, Scottish Office (Mr. Ian Lang)
Good progress is being made in the discussions between the Scottish Assessors Association and the Inland Revenue valuation office on harmonisation of valuation practice. These discussions are expected to result in significant progress towards harmonisation for the vast majority of subjects in 1990.

§ Mr. Worthington
That is the sort of waffle that we have had for months on end when we ought to have a statement about the progress being made. Does the Minister agree that there will be a widening difference in business rates between Scotland and northern England after 1990 and that we shall continue to have a situation in which a marina at Largs pays five times as much as a similar marina in Hampshire? Does the Minister agree that the uniform business rate for Great Britain, which includes Scotland, will not be implemented until 1996 or after?

§ Mr. Lang
The hon. Gentleman calls it waffle because he does not like the fact that we are making progress on this. The Labour party contributed to the situation through high local government spending and when the Labour Government were in office they did nothing to put it right. We are making progress step by step. I have already said that a large measure of harmonisation will be introduced in 1990. Further progress will be achieved thereafter and we expect to achieve close harmony within a short time.

§ Mr. Buchanan-Smith
Can my hon. Friend offer any comfort to those with business premises, including farmers, food processors and other small businesses in relation to water charges in the coming financial year? Is he aware that in Grampian the charges are increasing by nearly 100 per cent. and are a heavy burden on industry in the area?

§ Mr. Lang
As my right hon. Friend knows, these are matters for the regional councils, which have decided on the formula to apply. We have sought to ensure that the 260 cost of water is borne more directly by users in relation to the cost of its delivery. That has meant substantial savings to many small businesses around the country.

§ Mr. Lambie
Is the Minister now able to make a positive response to the recent representations that he received from the Chemical Industries Association about industrial valuations?

§ Mr. Lang
As the hon. Gentleman knows, most of the plants are valued on the contractor's principle. As a result of an appeal, the decapitalisation rate has been reduced for many such subjects. In addition, my right hon. and learned Friend the Secretary of State for Scotland and my right hon. Friend the Secretary of State for the Environment have taken powers to prescribe a common decapitalisation rate if they so wish. If that is done, it will also be an advantage to the chemical industry.

§ Sir Hector Monro
Does my hon. Friend agree that, because of indexation, the business rates for the coming year will be substantially less than they would have been in normal circumstances, bearing in mind that local authorities have increased expenditure by vast amounts—perhaps up to 30 per cent.—which would have made business rates exorbitantly high this year?

§ Mr. Lang
My hon. Friend is right. The average increase in spending planned by regional councils is 14 per cent. for next year and it is much higher for district councils. We have given the business community the protection that it needs from the depredations of high-spending local authorities. It would have been a considerable advantage if it had had that protection over the past five or six years.