§ Mr. Chope
The basis of valuation of composite hereditaments under the new non-domestic rating system is set out in schedule 6 to the Local Government Finance Act 1988. The rateable value is derived from the open market rent obtainable for that part of the property used for non-domestic purposes. The domestic accommodation is not valued.
§ Mr. Fearn
Is the Minister aware that hotel and boarding house proprietors are concerned about their assessment because they will be paying not only the poll tax but the business tax? Is he aware that that is bound to affect tourism, especially in the north-west of England and particularly in my home town of Southport?
§ Mr. Chope
I cannot understand the hon. Gentleman's logic. In his part of the world, in Sefton, business rates on average will fall by about 20 per cent. as a result of the new system. In his constituency, each individual adult will have to pay a community charge. What is unfair about that? It is reasonable that every adult—guest house proprietors and others—should pay some contribution towards the cost of running local government services.
§ Mr. Nicholas Bennett
Is not it strange for a Liberal Member to complain about valuation when it has long been Liberal policy to have capital valuation and a local income tax? Does my hon. Friend agree that the hon. Member for Southport (Mr. Fearn) would have the worst of both worlds if we adopted Liberal policy?