§ Mr. DenhamTo ask the Secretary of State for the Environment (1) whether he will make it his policy to enable local authorities to charge business rates on those properties rented exclusively to students and whose occupants are exempt from council tax;
(2) what estimate he has made of the loss in revenue arising from the exemption of students from council tax liability in respect of (a) students residing in accommodation provided by institutions of higher education arid (b) students residing in privately rented accommodation.
§ Mr. Robin Squire[holding answer 14 December 1992]: Halls of residence and student-only dwellings have been exempted from the council tax because most students are not eligible to claim council tax benefit. The imposition of business rates on such properties would result in higher rents for students. The Government do not intend to take such a step.
Local authorities will be compensated for the revenue forgone as a result of this exemption through the revenue support grant system. No local authority will therefore be financially penalised for the presence in its area of students.