§ Baroness PhillipsMy Lords, I beg leave to ask the Question standing in my name on the Order Paper.
§ The Question was as follows:
§ To ask Her Majesty's Government whether they will assist small businesses by amending the laws which enable property developers to levy unlimited service charges on tenants with business leases.
§ Lord HeskethMy Lords, service charges are limited to the extent of the expenditures which have been incurred and which would normally be clearly identified within the terms of the business lease, which has been entered into willingly by the tenant and the landlord. Legislation is not required and would be contrary to the Government's policy on business lettings of non-intervention in a free market.
§ Baroness PhillipsMy Lords, bearing in mind that Her Majesty's Government are dedicated to helping small businesses, may we at some stage have an amendment to the Landlord and Tenant Act? I ask this question because whereas a tenant in a house has a limit, a business has no limit, and property developers (which are taking over the whole of London to the detriment of small businesses) are in full sway at the moment.
§ Lord HeskethMy Lords, the Government concluded a review of the main legislation in Part II of the Landlord and Tenant Act 1954 as recently as 1985. The review looked at the working of the Act with particular regard to small businesses. It found that generally the balance between the rights and obligations of landlords and tenants was being maintained. Monitoring of the Act continues.
§ Lord StrabolgiMy Lords, has the owner of a small business the right to examine the books, like a private tenant?
§ Lord HeskethMy Lords, I am not sure to which books the noble Lord is referring.
§ Lord StrabolgiMy Lords, the books on which the service charges have been based. If the noble Lord makes himself familiar with the 1980 Act, he will see that private tenants have the right to consult the books on which the service charges are based. I am asking whether the business tenant has the same right. If the noble Lord does not know the answer, will he write to me?
§ Lord HeskethMy Lords, I shall have to write to the noble Lord.
§ Baroness PhillipsMy Lords, as I am not going to have any support from my Front Bench or the Back-Bench opposite, I should like to say—
§ Baroness PhillipsMy Lords, it is a question. I do not want the Chief Whip to tell me that. This is a question which is relevant to the previous one. Service charges can be questioned if one is a tenant in a private property. If one is in a business enterprise, they cannot be questioned. Do Her Majesty's Government consider that there is a difference which should be looked at?
§ Lord HeskethMy Lords, I shall certainly look into the remarks that the noble Baroness has just made.