Local Government and Communities Committee, 05 Mar 2008

Meeting date: Wednesday, March 5, 2008

Official Report 116KB pdf

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Subordinate Legislation

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Housing Support Grant (Scotland) Order 2008 (Draft)

The Subordinate Legislation Committee did not draw the Local Government Committee's attention to this order. The instrument is laid under the affirmative procedure, which means that the Parliament must approve it before its provisions come into force. It has been normal practice to give members the opportunity to ask ministers and their officials questions prior to the start of the formal debate on such instruments. The minister may also make some introductory remarks on the instrument, if he wishes.

I will make some brief remarks, which may be of help to the committee.

The draft Housing Support Grant (Scotland) Order 2008 sets out the amount of grant that is payable in 2008-09. The purpose of the order is to provide grant to any local authority that would not be able to balance its housing revenue account without raising rents to unaffordable levels. Only Shetland, because of its very high housing debt, continues to qualify for grant. In 2008-09, it will receive around £1.6 million. Shetland is an exceptional case and, without this grant subsidy, its rent levels would have to increase from the current average of about £54 per week to around £70 per week. The average rent in Scotland is currently about £48 per week. All other councils are able to balance their housing revenue accounts from rental income.

There are no questions from members, so I thank Ms England for her attendance.

Agenda item 3 is the formal debate on the motion, which will last no more than 90 minutes—I hope that it will take less time than that. I invite the minister to move motion S3M-1364, in the name of Nicola Sturgeon.

Motion moved,

That the Local Government and Communities Committee recommends that the draft Housing Support Grant (Scotland) Order 2008 be approved.—[Stewart Maxwell.]

Motion agreed to.

I thank the minister for his attendance.

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Housing (Scotland) Act 2001 (Alteration of Housing Finance Arrangements) Order 2008 (SSI 2008/28)<br />Non-Domestic Rate (Scotland) Order 2008 (SSI 2008/32)

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Housing Revenue Account General Fund Contribution Limits (Scotland) Order 2008 (SSI 2008/34)

Agenda item 4 is consideration of three negative instruments. A negative instrument will come into force unless a motion to annul is lodged in the Parliament. Members have received copies of the instruments. No concerns have been raised on the instruments and no motions to annul have been lodged.

Do members agree that the committee has nothing to report to the Parliament on the Housing (Scotland) Act 2001 (Alteration of Housing Finance Arrangements) Order 2008?

Members indicated agreement.

Do members agree that we have nothing to report to the Parliament on the Non-Domestic Rate (Scotland) Order 2008?

I have an observation to make. According to my quick arithmetic, it looks as though the increase in the non-domestic rate between 2007-08 and 2008-09 from 44.1p to 45.8p in the pound is an increase of approximately 4 per cent. Although there will be a welcome reduction in rates for smaller businesses, it is perhaps worth pointing out the contrast between a freeze in council tax bills and an above-inflation increase in the business rate.

The increase is only for some businesses, because the business rate is being abolished for small businesses.

Yes, but businesses with a rateable value of more than £15,000 will face a 4 per cent increase in rates.

Do members agree that we have nothing to report to the Parliament on the order?

Members indicated agreement.

Do members agree that we have nothing to report to the Parliament on the Housing Revenue Account General Fund Contribution Limits (Scotland) Order 2008?

Members indicated agreement.

As we agreed previously, we will now move into private session for agenda item 5.

Meeting continued in private until 13:08.