Committee stage of the Local Government Finance Bill

01 February 2012

The House of Commons held the third and final day of the Committee stage of the Local Government Finance Bill on Tuesday 31 January. The first day was held on Wednesday 18 January and the second day was held on Tuesday 24 January. The Bill will now await third reading in the Commons

Summary of the Bill

The Bill would introduce local retention of non-domestic rates, subject to various checks and balances, and would allow for the introduction of Tax Increment Financing by introducing possible new income streams against which councils would be able to borrow. The same provisions could also be applied to Enterprise Zones.

The Bill will also provide a framework for the establishment of local systems of support for council tax payers, to replace Council Tax Benefit, from April 2013. There are also measures to amend council tax legislation, including removing exemptions for certain types of empty property.

Keep up to date with all the proceedings and documentation on the Local Government Finance Bill and find out how a Bill becomes an Act of Parliament

House of Commons Library analysis

The House of Commons Library produce briefing papers to inform MPs of key issues. The Library published a briefing paper for second reading on the Local Government Finance Bill.

Committee stage proceedings

Day one: Wednesday 18 January

MPs considered in the following order; Clause 1 and amendment 20, and Schedule 1 and amendments 46, 1-2, 19 and 39.

Clause 1 relates to local retention of non-domestic rates and was agreed to without a division. Amendment 20 to Clause 1 was defeated on a division (Ayes: 246, Noes: 316).

Schedule 1 relates to local retention of non-domestic rates. Amendment 46 to Schedule 1 was negatived. Amendments 1 and 2 were added to the Schedule. Amendment 19 was defeated on a division (Ayes: 232, Noes: 318). Amendment 39 was defeated on a divison (Ayes: 228, Noes 318). Consideration of further amendments to Schedule 1 took place on day two of the committee stage.

Watch and read the debate and the views expressed by MPs on Parliament TV and in Commons Hansard. Also find parliamentary material on Local Government in the Topics and News sections.

Day two: Tuesday 24 January

MPs considered in the following order; Schedule 1 and amendments 3-8, 27, 30 and 33, Clause 2, Schedule 2 and amendment 65, Clauses 3-5, Schedule 3 and amendments 9-16, Clauses 6-7, New Clauses 2, 5 and 7.

Schedule 1 relates to local retention of non-domestic rates and was agreed after amendment. Amendments 3-8 were added to the Schedule. Amendments 27 and 30 were withdrawn. Amendment 33 was defeated on a division (Ayes 220; Noes 290).

Clause 2 relates to revenue grant support and was agreed without a division.

Schedule 2 relates to amendment of provisions about revenue grant support and was agreed to without a division.

Clause 3-5 which relate to additional grant, General GLA grant and local retention of non-domestic rates: further amendments were agreed to without a division.

Schedule 3 relates to local retention of non-domestic ratess: further amendments and was agreed after amendment. Amendments 9-16 were added to the Schedule.

Clauses 6 and 7 which relate to definition of domestic property and provision of information about non-domestic rates were agreed to without a division.

New Clause 2 which relates to major redevelopment schemes: non-domestic rate income was defeated on a division (Ayes 219; Noes 284)

New Clause 5 which relates to re-set of the system was negatived.

New Clause 7 which relates to resets of the non-domestic rates retention system and was defeated on a division (Ayes 218; Noes 297).

Watch and read the debate and the views expressed by MPs on Parliament TV and in Commons Hansard.

Day three: Tuesday 31 January

MPs considered in the following order; Clause 8 and amendments 79 and 66, Schedule 4 and amendments 86 and 87, Clause 9, Clause 10 and amendment 17, Clauses 11-16 and New Clause 11.

Clause 8 which relates to council tax reduction schemes was agreed to after a division (Ayes 305; Noes 227). Amendement 79 was defeated on a division (Ayes 233; Noes 291). Amendment 66 was defeated on a division (Ayes 233; Noes 294).

Schedule 4 which relates to amendments to council tax reduction schemes was amended by amendments 86 and 87.

Clause 9 which relates to power to determine further discounts for certain dwellings was agreed to without a division.

Clause 10 which relates to power to set higher amount for long-term empty dwelling was amended by amendment 17.

Clauses 11-16 were agreed to without a division.

New Clause 11 which relates to payment of additional grant was defeated on a division (Yes 225; Noes 299).

The Bill will now be considered at third reading. Watch and read the debate and the views expressed by MPs on Parliament TV and in Commons Hansard.

Committee of the whole House

When a Bill passes its second reading and is considered in detail, this usually takes place in a Public Bill Committee held outside the Chamber and made up of between 16 and 20.

Occasionally a Bill will be considered by a Committee of the whole House and this discussion takes place in the Commons Chamber itself, where all MPs can take part.

Any Bill can be referred to a Committee of the whole House, but the procedure is normally reserved for finance bills and other important or controversial legislation.

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