§ Mr. Barry FieldTo ask the Secretary of State for the Environment what steps the Government propose to take to ensure that holiday caravans remain within the non-domestic rating system in England and Wales.
§ Mr. ChopeDuring the consideration of the Local Government Finance Bill in 1988, the Government, in response to representations made by the caravan industry, introduced an amendment intended to provide that holiday caravans should remain within rating, while the owners of caravans not occupied as sole or main residences but used as second homes should be subject to the standard community charge. The distinction was drawn according to whether or not the caravan was on a protected site, within the meaning of the Caravan Sites Act 1968. No holiday caravans were understood to be on such sites.
It has now become apparent, however, that many sites primarily occupied by holiday caravans are protected sites. A high proportion of holiday caravans may therefore attract the standard community charge. This was not the Government's intention and, even though we have prescribed a maximum standard community charge multiplier of one for caravans and drawn to local authorities' attention their discretion to set a lower multiplier still, it is likely that many holiday caravan owners in England and Wales would face a burden considerably greater than if their caravans had been rated.
After discussion with the caravan industry, therefore, the Government have decided to introduce shortly legislation to amend the Local Government Finance Act 1988 to provide for all caravans other than those occupied as a sole or main residence to be treated as non-domestic and subject to rating rather than attracting the standard community charge, whether or not they are stationed on a protected site. The legislation will provide for this amendment to the 1988 Act to take effect from 1 April this year. It will further provide that any standard community charge which may have been paid on a caravan before the legislation comes into force will be repayable. Once the legislation is in force, valuation officers will alter local 347W non-domestic rating lists in respect of the affected sites to reflect the contribution that the caravans make to the assessment of the site as a whole.
My Department and the Welsh Office are today writing to all charging authorities in England and Wales to inform them of the Government's intentions. The legislative position is different in Scotland, where holiday caravans are not liable for the standard community charge unless they are able to be used for all year round residence. However, the change we are proposing may lead to caravans in England being subject to non-domestic rating which, in comparable circumstances in Scotland, would be liable to the standard charge. My right hon. and learned Friend the Secretary of State for Scotland has concluded that legislative change is therefore required in Scotland and the necessary provisions will be included in the Bill which we will bring forward.