HC Deb 23 April 2001 vol 367 cc62-4W
Mr. Nicholas Winterton

To ask the Secretary of State for the Environment, Transport and the Regions what criteria were used in drawing up the list of rural local authorities to which the emergency business rate relief scheme will be applicable as a result of the outbreak of foot and mouth disease. [157431]

Mr. Meacher

[holding answer 9 April 2001]: This list identifies the most rural and least densely populated LA areas in England. The decision to target additional Government support on these areas reflects the fact that in broad terms it is the most rural areas that are suffering most of all from the effects of FMD. It equates broadly with the worst effects of FMD, including its broader economic effects. It does not attempt to match every FMD case. Other authorities are likely to suffer less because they are closer to large urban centres and have a wider spread of economic activity. That is why we have targeted relief in this way, using a standard definition of rurality, developed by the Rural Development Commission and the Countryside Agency.

Mr. Green

To ask the Secretary of State for the Environment, Transport and the Regions how many Environment Agency staff have been diverted from their normal duties to work on the foot and mouth crisis. [157999]

Mr. Meacher

[holding answer 10 April 2001]: Approximately 400 Environment Agency staff are working on foot and mouth related issues. As the information is not held centrally it has not been possible to identify the number of staff diverted from their normal regulatory work. Many staff are working in their normal regulatory function but are dealing with the consequences of the foot and mouth outbreak on a daily basis.

In addition, some 30 agency staff have been diverted from their normal duties to assist the Ministry of Agriculture, Fisheries and Food with additional administrative and technical work arising from the outbreak of foot and mouth disease.

Mr. Öpik

To ask the Secretary of State for the Environment, Transport and the Regions what discussions he has had with other departments regarding the creation of a recovery package for those businesses which have been affected by the foot and mouth outbreak; and if he will make a statement. [158684]

Mr. Meacher

I am in close contact with other Departments about measures both to help rural businesses to survive the impact of the foot and mouth outbreak and to regenerate the rural economy once the outbreak has been eradicated.

Mr. Öpik

To ask the Secretary of State for the Environment, Transport and the Regions (1) what discussions he has had with the Chancellor of the Exchequer regarding the payment of compensation for consequential losses to firms suffering significantly reduced turnover as a result of the foot and mouth outbreak; and if he will make a statement; [158725]

(2) what discussions he has had with the Chancellor of the Exchequer on (a) suspending business rates, (b) suspending VAT payments and (c) introducing tax concessions for firms suffering significantly reduced turnover as a result of the foot and mouth outbreak; and if he will make a statement. [158722]

Mr. Meacher

My right hon. Friend and I have kept in close touch with Ministers from a range of other Government Departments on the economic effects of the foot and mouth outbreak and the Government have announced a number of measures to help those adversely affected. These include additional financial support for local authority discretionary hardship rate relief schemes in rural areas. Implementation is for local authorities and many have announced their intention to introduce schemes. The measures also include extension of the Small Firms Loan Guarantee Scheme, additional funding for the Regional Development Agencies and a

£ million
Nature of funding 1997–98 1998–99 1999–2000 2000–01 2001–021
Revenue Support Grant 2.39 2.69 2.62 2.44 2.77
Income from National Non-Domestic Rates 2.88 2.91 3.13 3.48 3.44
Local Government Reorganisation n/a n/a n/a n/a n/a
Supplementary Credit Approval 2— 2— 2— 2— 2—
Housing Investment Programme 1.27 1.06 1.28 2.83 1.14
sympathetic approach to deferring or extending the time to pay tax, VAT and National Insurance contributions where businesses apply for this.

Mr. Chope

To ask the Secretary of State for the Environment, Transport and the Regions, pursuant to the answer to the hon. Member for West Worcestershire (Sir M. Spicer) of 6 April 2001,Official Report, column 301W, on foot and mouth, if he will instruct local authorities not to recover unpaid rates from businesses which have appealed for a temporary reduction in rating assessments on the grounds of the impact of foot and mouth and where the appeals have not yet been determined. [158673]

Mr. Meacher

I have no powers to do so. However, local authorities have discretion to defer or reschedule payment of rates of businesses that are severely affected by the foot and mouth outbreak, or by other adverse circumstances.

Local authorities also have discretion to grant rate relief to businesses suffering from hardship. On 22 March, I announced measures designed to alleviate the immediate financial hardship of small businesses in rural areas that have been badly hit by the effects of foot and mouth disease. As part of this package of measures, I announced an increase in the central government contribution to 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.

In addition, the Government have extended the deadline for making an appeal against the rateable values of properties in these 151 rural authority areas so that appeals received by 30 June 2001 may be backdated into the 2000–01 financial year, if appropriate.