§ Baroness Miller of Chilthorne Domerasked Her Majesty's Government:
What plans they have for reimbursing those local authorities who have experienced substantial extra unforseen costs due to their work during the foot and mouth crisis. [HL270]
§ The Minister of State, Department for Transport, Local Government and the Regions (Lord Falconer of Thorton)On 24 April, my honourable friend the then Parliamentary Under-Secretary of State (Beverley Hughes) announced the activation of the Bellwin scheme to provide emergency financial assistance to local authorities to help them meet some of the costs of responding to outbreaks of foot and mouth disease. This scheme is based on Section 155 of the Local Government and Housing Act 1989, which permits only the reimbursement of expenditure incurred by local authorities on, or in connection with, the taking of immediate action to safeguard life or property, or to prevent suffering or severe inconvenience, in their area or among its inhabitants. Funding rate relief for small businesses does not, therefore, fall within the scope of this scheme.
On 22 March, my right honourable friend the Minister for the Environment announced an increase in the central government contribution to local authorities to fund rate relief from 75 per cent to 95 per cent for small businesses which are suffering hardship as a result of foot and mouth disease in 151 rural authorities in England. This applied for an initial period of three months. Details of the arrangements 130WA were given in Special Grant Report No. 80, which was laid before the other place and approved by Parliament on 2 April 2000.
A new Special Grant Report No. 86 was debated and passed in the other place on Monday 16 July. It continues the terms of SGR No. 80 for a further six months, so the grant will be available for the period 1 April to 31 December. It also extends the terms of the scheme to provide more grant to the worst affected authorities. Any eligible authority which grants relief worth in total more than 8 per cent of its net budget requirement will receive central funding of 98 per cent for spend above that level, as opposed to 95 per cent below it (75 per cent through the pool in the usual way plus special grant of either 20 per cent or 23 per cent). Grant will also be available to 37 specified authorities in the worst affected areas for relief given to properties up to £50,000 rateable value, as opposed to £12,000 rateable value in the other 114 rural authorities.
In addition authorities covered by Special Grant Report No. 80 will benefit from a temporary reduction of 50 per cent in contributions to the National Non-Domestic Rate Pool between April and August.