We are seeking assurances from the Government that this Bill will have no detrimental impact on local government. We therefore welcome the recommendation of the Housing, Communities and Local Government Committee that the Government should take steps to quantify the potential effect on individual local authorities of the provisions of the Bill.
Key messages
Hereditaments occupied or owned by the same person (Clause 1)
- We are seeking assurances from the Government that this Bill will have no detrimental impact on local government. We therefore welcome the recommendation of the Housing, Communities and Local Government Committee that the Government should take steps to quantify the potential effect on individual local authorities of the provisions of the Bill.1
- In particular, we are looking to engage with the Government to explore the financial impact on councils of the Government’s plans to reinstate features of the business rates valuation practice which applied prior to the Supreme Court in Woolway v Mazars. Prior to this case, single valuations were often given to units of property that were contiguous (touching) and in the same occupation.
- The Chancellor confirmed at the Autumn Budget 2017 that local government would be fully compensated for the loss of income as a result of this announced measure.2 It is therefore disappointing that the Government later announced that no compensation will be payable to local government.
- We support the Committee’s recommendation that the Government needs to reassure councils that they are not going to be worse off financially because of this legislation, and that the Government should bear the associated costs as a result of the reforms. The new burdens principle should apply to this retrospective change, in order to fully fund councils for any losses to their income.