§ Mr. Jonathan EvansTo ask the Secretary of State for the Environment (1) what is the Government's policy on the relief of hardship for business ratepayers;
(2) what is the Government's policy regarding the current operation of section 49 of the Local Government and Finance Act 1988; and if he will make a statement.
§ Mr. RedwoodSection 49 of the Local Government Finance Act 1988 gives local authorities discretion to grant hardship relief of up to 100 per cent., where it is reasonable for them to do so having regard to the interests of their community charge payers. Where they grant such relief, 75 per cent. of the cost is met by the non-domestic rates pool and only 25 per cent. locally. Alternatively, under regulations, authorities may enter into an agreement with a ratepayer to defer liability and take an interest in his property to secure payment, or they can spread a ratepayer's annual liability over 12 instalments instead of 10. These are decisions which are best made locally. We have drawn authorities' attention to the existence of their section 49 powers and issued advice on their use.