§ 2.51 p.m.
§ Viscount Brentford asked Her Majesty's Government:
§ How many rating assessments on sports clubs have been reconsidered and reduced to reflect ability to pay since November 1996.
§ Lord WhittyMy Lords, assessments for rateable value are made by the Valuation Office Agency. In November 1996 it issued guidance notes on the assessment of sports clubs which identified the cases in 780 which the ratepayer's ability to pay should be reflected in rateable values. I understand that several appeals were made to reduce assessments following this guidance, but we do not hold centrally information on the number of appeals made by sports clubs or the results of the appeals.
§ Viscount BrentfordMy Lords, I thank the noble Lord for that Answer. Will he join me in congratulating Camp Hill Old Edwardians Cricket Club in Solihull on obtaining a reduction in the club's rateable value from £3,800 to £1,500? Does the noble Lord know whether tribunals have been reminded that they must take account of the fact that a sports club may be the only possible occupant of a property, as the Court of Appeal has directed? Will the Government publicise the need for clubs which suffer from an excessive valuation at the present time to apply for refunds of rates immediately as the deadline for doing so is approaching?
§ Lord WhittyMy Lords, as is the case with other organisations, sports clubs can at any time contact their local valuation office about their rating. As the noble Viscount will be aware, the guidance provides for the valuation office to take account of a ratepayer's position where there is no market for his property as a sports club is the only conceivable occupant of that property. In that situation the valuation office needs to take account of the rates that are paid for such a building, and thus, indirectly, the occupant's ability to pay. Valuation offices follow that procedure. I believe that sports clubs are aware of that procedure.
§ Lord AddingtonMy Lords, does the Minister agree that as sports clubs, particularly amateur sports clubs, provide an important social function and also an increasingly important part of the physical education in this country, there is a strong case for removing them from the rating system altogether?
§ Lord WhittyMy Lords, I should make it clear that I am talking about non—commercial sports clubs in this connection. A significant number of sports clubs—including many gyms—make a profit and therefore are not covered by this exemption. As well as approaching the valuation office for a reduction in rateable value, there is the possibility of applying to the local authority for discretionary rate relief. I understand that a number of sports clubs are among the non-profit-making organisations which apply to local authorities for that benefit.
§ Lord EltonMy Lords, my noble friend said that there was a deadline before which applications for revaluation had to be made. Will the Minister kindly tell us what that deadline is so that this can be in the record and widely distributed?
§ Lord WhittyMy Lords, it relates to the previous valuation. The new valuation will be made in the year 2000. Appeals against rateable values are re-evaluated every five years. This modification relates to the 781 previous valuation. The next one will occur in the year 2000. We shall shortly consult on the basis for that new valuation.
§ Lord EltonMy Lords, I am sorry but I did not get out of that when the deadline is in relation to the earlier valuation.
§ Lord WhittyMy Lords, the deadline applies for as long as that valuation lasts. The new valuation will occur in the year 2000.
§ Lord Dixon-SmithMy Lords, will the Minister inform the House whether there is any guidance to rating authorities on the use of their discretion in cases of small sports clubs, which so often—particularly in the more rural parts of the country—provide more of a social service than a sporting facility?
§ Lord WhittyMy Lords, every valuation office has the guidance and the Valuation Office Agency has worked closely with the Central Council for Physical Recreation to ensure that sports clubs in general know that the facility exists. Although we do not have a comprehensive list of those clubs which have benefited from the measure, I understand that a significant number of them are village clubs in rural areas.
§ Viscount BrentfordMy Lords, with regard to the question of my noble friend Lord Elton, is it not true that appeals for amendment for the period between 1990 and 1995 have to be lodged by 5th August this year?
§ Lord WhittyMy Lords, the noble Lord may well be right. However, those appeals relate to a valuation which was established five years ago.