This briefing provides a summary of parliamentary scrutiny of the Non-Domestic Rates (Scotland) Bill prior to Stage 3 proceedings, which are scheduled to take place on 4 February 2020. It is designed to provide a summary of the main issues associated with the Bill during its passage so far, and amendments made at Stage 2. It does not provide a comprehensive discussion of all the issues raised in relation to the Bill. SPICe Briefing 19/28 Non-Domestic Rates (Scotland) Bill, available on the SPICe digital hub, provides information on the Bill as introduced.
The Non-Domestic Rates (Scotland) Bill1 ("the Bill"), was introduced in the Scottish Parliament on 25 March 2019. The policy memorandum2 for the Bill sets out that the policy objectives are to:
deliver a Non-Domestic Rates system designed to better support business growth and long-term investment and reflect changing marketplaces
improve ratepayers' experience of the rating system and administration of the system
increase fairness and ensure a level playing field amongst ratepayers by reforming rate reliefs and tackling known avoidance measures.
The Local Government and Communities Committee considered the Bill at Stage 1. It published its Stage 1 report on 4 October 20193.
The Delegated Powers and Law Reform Committee reported on the delegated powers set out in the Bill on 26 June 20194.
The Stage 1 debate on the Non-Domestic Rates (Scotland) Bill took place on 10 October 20195. The Minister for Public Finance and Digital Economy outlined the Scottish Government's key priorities in the Bill, and members expressed general support, with some concerns around clarity and regulation-making powers. The Scottish Parliament agreed to the general principles of the Bill, with 97 votes in favour, six abstentions and no votes against.
The Local Government and Communities Committee considered the Bill at Stage 2 0n 27 November and 4 December 2019. 100 amendments were discussed, with 63 being agreed to, and an amended version of the Bill was published on 5 December 20196.
Key changes included:
Clarification on a number of new procedures introduced in the Bill, such as adding a mark in the valuation roll for new and improved properties, the proposals, appeals and complaints procedures, payments, anti-avoidance regulations, and the new information notices procedure.
Changes to the properties to be entered on to the valuation roll, including clarification on instances where parks and student accommodation may be entered.
Devolution of Non-Domestic Rates setting to a local level (Amendment 9). This amendment in particular proved controversial and both the Scottish Government and a number of organisations have expressed concerns. This amendment also made changes to existing relief schemes which the member laying the amendment has suggested were unintentional and would be revised in a Stage 3 amendment.
The addition of new provisions which would aim to reward businesses for sustainable business practices.
Clarification of the eligibility of certain private independent schools for rates relief on the grounds of the provision of specialist musical education.
Repealing the powers for Scottish Government to provide relief to unoccupied/empty properties, making this a matter for local authorities to manage in-house.
A number of amendments which sought to add new provisions to the Bill, to take a different approach to the accepted amendments, and to remove the provisions set out in Section 10 on charitable relief for independent schools, were not agreed to.
Stage 3 scrutiny of the Bill is scheduled to take place on 4 February 2020.
The Non-Domestic Rates (Scotland) Bill1 ("the Bill"), was introduced in the Scottish Parliament on 25 March 2019. The policy memorandum2 for the Bill sets out that the policy objectives are to:
deliver a Non-Domestic Rates system designed to better support business growth and long-term investment and reflect changing marketplaces
improve ratepayers' experience of the rating system and administration of the system
increase fairness and ensure a level playing field amongst ratepayers by reforming rate reliefs and tackling known avoidance measures.
The Local Government and Communities Committee ("the Committee")was designated as the lead Committee in scrutinising the Bill, and issued a call for evidence which closed on 30 May 2019. It received 367 submissions, mostly from individuals or families. The vast majority were from respondents concerned by the provision in the Bill on ending rates relief for independent schools.
The Committee took formal evidence at five meetings between May and September 2019. Full details of the Committee's evidence sessions and witnesses, including links to the Official Report, are available on the Committee web page.
Alongside formal evidence-gathering, Committee Members made three visits in connection with the Bill:
On 12 June Members visited George Watson's College, Edinburgh.
On 24 June, Members made a “high street” visit to Kilmarnock to meet representatives of the local business community and third sector, as well as council representatives.
The Committee made another high street visit, to Stirling, on 10 September.
The Committee went on to consider the draft Stage 1 Report, in private session, on 25 September and 2 October 2019.
The Committee published its Stage 1 report on Friday 4 October 20191. Although the Bill itself is short, the 'framework' nature of the Bill, coupled with the level of engagement and consultation carried out by the Committee, led to a large number of recommendations being made. These cover both the Bill itself, and the mechanisms the Bill seeks to introduce.
The Committee supported the general principles of the Bill, and in general suggested that the provisions were a "step in the right direction", but it also made a number of recommendations.
Excluding points purely showing support for aspects of the Bill or noting views of stakeholders, key points from the Committee's report which pertain to the Bill itself included coms calls for changes to the Bill, and some calls for clarification, which are set out in the next two sections. Full detail of the conclusions and recommendations made can be found in the Committee's report1.
The Minister for Public Finance and Digital Economy responded to the Committee's Stage 1 Report on 10 October 20191.
A the Scottish Government's response is set out clearly in relation to the Committee's recommendations, with most responses either indicating that the Committees views are welcome or or giving a reminder of ongoing work, it has not been repeated in great detail here. However, of note are the following points -
The Scottish Government strongly supports the move towards greater digital paperless interaction between ratepayers, local authorities and the assessor services. The Scottish Government will continue to engage fully with stakeholders including councils, assessors, Digital Office and ratepayer representatives to maximise the opportunities to take this forward and mitigate any risks associated with a transition to a more digitally based system.
The Non-Domestic Rates (Day Nursery Relief) (Scotland) Regulations 2018 provide that premises wholly or mainly used as day nurseries – whether in the private, public or third sector - are exempt from paying rates for the period 1 April 2018 until 31 March 2021. All sectors are therefore treated equitably. Most private & third sector nurseries will be located in premises that are wholly or mainly used as day nurseries, whilst many public sector settings will be part of a premise mainly used as a school and will not be eligible for the relief. Private and third sector providers, including childminders, have an important role to play in delivering the funded ELC entitlement; and will continue to do so beyond August 2020.
On Measures to secure information from ratepayers, The Scottish Government acknowledges that the written and oral Stage 1 evidence submitted to the Committee highlighted a divergence of views on a number of key points. The responses to the Scottish Government 2018 Barclay consultation provided a similar picture. The Minister for Public Finance and Digital Economy will reflect further on these matters and welcomes the opportunity for further discussion at the amending stages of the Bill.
In May and June 2019 the Delegated Powers and Law Reform Committee ("the DPLR Committee") considered the delegated powers in the Bill.
The DPLR Committee first considered the Bill at its meeting on 14 May 2019. At that meeting, the DPLR Committee determined that it did not need to draw the attention of the Parliament to the delegated powers in the following provisions:
Section 5 – Discretion of local authority to determine whether lands and heritages are dwellings
Sections 18(7) and 20(5) – Powers to increase or decrease civil penalty sums
Section 30 – Commencement.
At the same meeting, the DPLR Committee agreed to write to the Scottish Government to raise questions on a number of the delegated powers in the Bill.
The Delegated Powers and Law Reform Committee reported on the delegated powers set out in the Bill on 26 June 2019, which included recommendations around ancillary provisions in Sections 9 and 29, and calls for clarification around Sections 23 and 27. The full recommendations can be found in the report1.
The Stage 1 debate on the Non-Domestic Rates (Scotland) Bill took place on 10 October 20191.
In the debate, the Minister for Public Finance and Digital Economy spoke of the meaningful reform that the Bill, along with other Scottish Government action, had and would bring to the Non-Domestic Rates system on the back of Barclay recommendations. She suggested that the changes the Bill makes to the appeals system are the most important part of the Bill, and confirmed that at that point the Scottish Government were yet to make a decision on how provisions relating to fees might change.
Points made in the debate in support of the Bill included the change the revaluation period from five to three years, changes to the appeals process, and the addition of tax avoidance measures.
Concerns raised about the Bill focussed on the Bill not bringing about wider reform, with a move to a land value-based system, the Scottish Government's decision to not implement the Barclay recommendation of bringing the Large Business Supplement in to line with the English model, the Scottish Government giving itself too much power through regulation-making powers, and the need for further clarification on various measures.
Echoing the Committee's Stage 1 report2, there was a mixture of support for, and concerns about, the removal of charitable rates relief for mainstream independent schools.
The Scottish Parliament agreed to the general principles of the Bill by division, with 97 members voting in favour, six abstentions, and no votes in opposition.
Stage 2 offers an opportunity for any MSP to propose amendments to a Bill, although only members of the lead committee can vote on any amendments that are lodged. The Minister for Public Finance and Digital Economy (‘the Minister’) took forward the Scottish Government amendments at Stage 2.
The Local Government and Communities Committee ("the Committee") considered the Bill at Stage 2 in November and December 2019.
Stage 2 consideration of the Non-Domestic Rates (Scotland) Bill - Day 1
Stage 2 consideration of the Non-Domestic Rates (Scotland) Bill - Day 2
A total of 101 amendments were lodged.
As well as a large number of technical amendments, some amendments related to provisions which were not present in the Bill as drafted, which reflected the wide scope of the evidence heard. Certain amendments were on issues not raised during scrutiny of the Bill to date.
Rather than review all amendments in detail, the following sections will focus on the changes made to the Bill at Stage 2, and to some of the other amendments which were lodged but either not moved, or not agreed to.
The Bill, as amended at Stage 2, was published on 5 December 20191. A summary of changes made to the Bill at Stage 2 follows. Technical drafting amendments have not been included in this summary.
In total there were 101 amendments to the Bill.One was withdrawn and replaced, meaning that 100 amendments were considered at Stage 2. Of these amendments:
63 amendments were agreed to, 11 of which by division.
23 amendments were disagreed to by division.
8 amendments were not moved.
6 amendments were withdrawn.
The following amendments made changes to the valuation roll and process surrounding its use. All were agreed to without division:
Scottish Government amendments 16, 17 and 18 clarified the definitions and processes around adding a mark in the valuation roll for new and improved properties.
Scottish Government amendments 19 and 20 clarify how and when parks should be eneted on the valuation roll.
Amendment 8, in the name of Andy Wightman (and an alternative to rejected Amendment 7), addresses concerns about exempt properties not appearing on the valuation roll. The amendment allows exemptions that are currently set out in primary legislation to be removed in future through secondary legislation.
Amendment 85, in the name of Sarah Boyack, aims to ensure that privately owned, for profit student residences are entered on the valuation roll, but leaves to the Scottish Government the detail on how such entries in the roll would be implemented.
In evidence, the Minister expressed concerns around unintentional consequences that may be detrimental to students. Sarah Boyack noted these concerns and suggested that further refinement at Stage 3 could be made following further analysis of potential consequences.
Amendments 21, 22, 24, and 27-35 were all lodged by the Scottish Government, and aimed to clarify the process for agreements, proposals, appeals and adjustments to the valuation roll, including the power to impose a fee for fee repayment. All were agreed to without division.
Amendment 36, in the name of Alexander Stewart, places a requirement on Scottish Ministers to consult local authorities, assessors, business sector representatives and such other persons as considered appropriate before making regulations to set fees in connection with appeals. In evidence, the Minister expressed a desire to refine the amendment at Stage 3. The amendment was agreed to without division.
The purpose of these Scottish Government amendments is to ensure that the Bill's provisions work for the designated assessor regime as well as the individual assessors. There are five designated assessors who do not have responsibility for “areas” in a geographical sense but rather they have responsibility for the valuation of “subject” areas – docks and harbours, electricity generation subjects, electricity transmission and distributions subjects, gas subjects, railways and water subjects. So for example once the designated assessor for water subjects determines the value of all the water subjects in Scotland then a single entry will be made in the valuation roll of the Fife assessor.
Amendment 23 provides that a new proprietor, tenant, or occupier can make a proposal to the assessor who valued the property they occupy.
The purpose of amendment 31 is to provide that appeals against valuations determined by a designated assessor can be lodged with a valuation appeal committee which hears appeals from that assessor, regardless of where the property is situated.
Amendment 52 ensures that a designated assessor can issue assessor information notices for all lands and heritages that they are to value.
All three amendments were agreed to without division.
Scottish Government amendments 65, 68, 71, and 72, all agreed to without division, made changes to the proposed ancillary powers of Scottish Ministers as set out in the Bill, and sought to address some of the the concerns of the Delegated Powers and Law Reform Committee.
Amendment 38 amends the definition of a “material change of circumstances” in the Local Government (Scotland) Act 1975. “Material Change of circumstances” (which can currently refer to both physical and economic circumstances) will no longer include economic factors, and specifically a change in rent, or of valuation or the value of the lands and heritages generally. This Scottish Government amendment was agreed to without division.
Amendment 9, lodged by Andy Wightman, makes the following changes (to be implemented by 2024):
Requires that regulations in relation to non-domestic rates are subject to the affirmative procedure (they are currently subject to negative procedure and therefore would not be scrutinised or debated by Committee or Parliament unless there is a motion to annul the statutory instrument).
Specifies that if a local authority does not wish to set its own non-domestic rates, then the rate will be determined by Scottish Ministers.
Returns the power to set non-domestic rates to local authorities (through the repeal of Section 110 of the Local Government Finance Act 1992).
Ends the operation of any reliefs that were established under Section 153 of the Local Government etc. (Scotland) Act 1994 (which includes the Small Business Bonus Scheme, the Business Growth Accelerator and Nursery relief as well as a number of other reliefs).
The amendment was moved and agreed to by division (For 4, Against 3, Abstentions 0).
During consideration of the Bill at Stage 2 (day one), Members noted that it would be helpful to have more time to consider amendment 9. The Minister wrote to the Committee in relation to this amendment. In addition, the Committee received 35 submissions from a range of organisations expressing views on the amendment.
The following sections discuss some of the issues raised in written evidence.
Amendment 92, in the name of Sarah Boyack, uses an existing power to enable Scottish Ministers to make different provision (this could include setting a different poundage, or introducing a relief) for properties whose contribution to the net-zero emissions target, including through investment in district heating, falls into different categories. These terms are not defined in the amendment.
Amendment 92 was agreed to by division (For 4, Against 3, Abstentions 0).
Amendment 15, in the name of Andy Wightman, extends eligibility for relief to public sector music schools which select pupils on the basis of musical ability, follow a curriculum including classes with a purpose of developing musical excellence and are wholly and mainly used for that purpose. There are currently four Schools of Musical Excellence in Scotland - Broughton High School, Douglas Academy, Plockton High and Dyce Academy. In addition, Mr Wightman suggested that there is anecdotal evidence that at least one primary school, Flora Stevenson, acts in part as a feeder school to Broughton High School and there may be an unspecified number of other equivalent schools across the country.
Despite being Schools of Musical Excellence, it is likely that none of the four schools would meet the criteria set out in the amendment since:
None of them are wholly or mainly used for the purpose of developing musical excellence, the specialist musical provision is subsumed within the broader comprehensive school.
Few, if any, pupils are selected to attend the schools purely on the basis of musical ability, they are typically selected from within the school for particularly opportunities offered by musical tuition.
Amendment 15 was agreed to by division (For 4, Against 2, Abstentions 0).
Amendment 94, in the name of Sarah Boyack, requires that at the same time the Scottish Ministers are consulting local authorities and other persons on draft guidance prior to its issue, the Scottish Ministers must lay a draft copy of the guidance before the Parliament. Additionally, amendment 95 provides that the Scottish Ministers may not issue guidance under sub-section (7A) until after a period of 40 days beginning on the day the draft guidance was laid before Parliament. In calculating the 40 days no account is to be taken of any time during which the Parliament is dissolved or is in recess for more than 4 days. If the Parliament resolves within the 40 days that the guidance proposed should not be issued, Ministers must not issue it.
Both amendments 94 and 95 were agreed to by division with the same voting results (For 4, Against 2, Abstentions 0).
Scottish Government amendment 42 repeals the powers for Scottish Government to provide relief to unoccupied/empty properties. The effect is to leave any reliefs to local authorities to provide under their Community Empowerment Act powers.
Amendment 43 is a technical amendment to support the inclusion of amendment 42.
Both amendments were agreed to without division.
The following Scottish Government amendments were all agreed to without division.
Amendments 44, 45, 47, 48 and 49 clarify the process for recovery of payments as well as setting out a clearer outline of who is liable to make payments, and the point at which ratepayers may become liable.
Amendment 50 provides Scottish Ministers with the power to make regulations specifying that certain notices may be sent by electronic means. These notices could include valuation notices issued to the proprietor, tenant and occupier; assessor information notices issued to any person; notices from the local authority to the ratepayer as well as from the ratepayer to the local authority; notices from the Valuation Appeal Committee to the parties (the appellant and assessor), or from the parties to each other and to the Committee.
Amendment 51 specifies that these regulations are subject to the affirmative procedure, and makes consultation and notification requirements of Scottish Ministers developing these regulations.
Both of these Scottish Government amendments were agreed to without division.
Currently changes to the poundage or reliefs under section 153 of the Local Government etc. (Scotland) Act 1994 are subject to the negative procedure. Amendment 4, in the name of Andy Wightman, substitutes an affirmative procedure. Section 153 is used to set the majority of rates relief through subordinate legislation, but is not used for the poundage order which is set under section 7B(1) of the Local Government (Scotland) Act 1975 (see The Non-Domestic Rate (Scotland) Order 2019 for instance).
Amendment 4 agreed to by division (For 4, Against 2, Abstentions 0).
Recommendation 13 of the Barclay Reviews sets out that "the current criminal penalty for non-provision of information to Assessors should become a civil penalty and Assessors should be able to collect information from a wider range of bodies". The Scottish Government accepted this recommendation, and sought to reflect the recommendation in the Bill.
It is currently set in Bill at £100 (amount A) if the assessor information notice is not complied with after 56 days (or 28 as per Amendment 53), with a further penalty of £100 (Amount B) after 21 days if the failure to provide the information continues, and £20 each day after the failure continues after the those 21 days (Amount C).
During evidence, the Committee found that views on these provisions were mixed, but that on the whole they were seen as a step forward. In particular, views on the level of fine and the timeframes were varied. The Committee supported the aims of these provisions, and concluded:
Whilst there was broad support for the thrust of these reforms, there was a divergence of views on some key points, such as levels of penalty, time limits for compliance, and whether powers to request information were framed too broadly or, conversely, too narrowly. On these and other points, there have been points made on both sides throughout Stage 1. This may indicate that the Bill has got the balance about right, or that some important points of policy might benefit from more discussion at amending stages of the Bill.
Stage 1 Report on the Non-Domestic Rates (Scotland) Bill: Measures to secure information from ratepayers.
The effect of Scottish Government amendments 54 and 56 to 60 is that if an information notice is served and the person fails to comply, they are liable after 28 days to a penalty equal to 1% of the rateable value (or £200, whichever is greater); to a penalty equal to 20% of the rateable value (or £1,000, whichever is greater) 28 days after the penalty notice is served, and the full rateable value 56 days after the penalty notice was served.
Amendments 54, 55, 57 and 60-66 were agreed to without division. The following amendments were agreed to by division.
Amendment 53 decreases the time frame - from 56 to 28 days - within which a person receiving an assessor information notice must comply with the notice. (For 4, Against 2, Abstentions 0).
Amendment 56 (in conjunction with amendment 54) replaces amount A with the greater of £200, and 1% of the rateable value of the lands and heritages concerned for the day on which the penalty notice is given; and £1,000 where the lands and heritages not yet entered in the Valuation Roll. (For 4, Against 2, Abstentions 0).
Amendment 58 replaces Amount B and the structure and amounts under Amount C with the greater of £1,000, and 20% of the rateable value of the lands and heritages concerned for the day on which the penalty notice is given, and £10,000 where the lands and heritages concerned are not entered on the Valuation Roll yet. (For 4, Against 2, Abstentions 0).
Amendment 59 specifies that if the person fails to comply with the original information notice within 56 days of receiving a penalty for non-provision of information, they become liable to a further penalty equal to the rateable value of the lands and heritages concerned for the day on which the penalty notice was given, or £50,000 where the lands and heritages are not yet entered on the Valuation Roll. (For 4, Against 2, Abstentions 0).
Amendment 96, in the name of Sarah Boyack, increases the timeframe - from 21 to 42 days - within which a ratepayer must tell the local authority of a relevant change in circumstances occurring. A change is relevant if the person knows, or might reasonably be expected to know, that it would affect rates liability.
Amendment 96 was agreed to without division.
The purpose of Scottish Government amendment 70 is to clarify when the Scottish Ministers must notify the Scottish Parliament "as soon as reasonably practicable" that a consultation on draft anti-avoidance regulations has commenced.
Amendment 70 agreed to without division.
There were a number of amendments which sought to achieve the aims of the Bill in a different way, to add further provisions or definitions to the Bill, or to remove provisions in the Bill, which were not agreed to. These are summarised below.
The following three amendments were lodged by Andy Wightman.
Amendment 1 aimed to transfer rates liability from the occupier of a property to the owner. The amendment was disagreed to by division (For 1, Against 6, Abstentions 0).
Amendment 5 and amendment 84 both, in different ways, aimed to tackle the problems the Committee heard about phoenix companies (see Key points made in recommendations). Andy Wightman did not move amendment 5, which was based on changes to existing guidance, in favour of pressing amendment 84, which would make owners liable in the event that debts could not be recovered from occupiers. Members objected to the amendment on the grounds that it did not arise from a Barclay recommendation, and the Minister expressed a preference for a consultative route on tackling this form of avoidance. Amendment 84 was disagreed to by division (For 2, Against 5, Abstentions 0).
Amendment 6, in the name of Andy Wightman, aimed to alter the basis of valuation from being based on rental value to being based on a combination of the valuation of the unimproved site (i.e. the land), and a valuation of "improvements" (i.e. buildings). The Minister expressed concerns about making such a fundamental change to NDR without consultation, as well as about the impact on assessors, and the knock-on impacts on other legislation. The amendment was disagreed to by division (For 1, Against 6, Abstentions 0).
Amendment 7, also lodged by Andy Wightman, would have the effect of bringing almost all properties on to the valuation roll that are currently exempt. This was an alternative way of achieving the same aims of Amendment 8. Amendment 7 was disagreed to by division (For 1, Against 6, Abstentions 0) with members opting instead to pass amendment 8 without division.
Sarah Boyack laid a number of amendments which sought to limit the extent of the powers that can be exercised by Scottish ministers, and were designed to reflect the findings of the Delegated Powers and Law Reform Committee. The Scottish Government also lodged a series of amendments to this effect which the Minister suggested achieved the same aims in an alternative way (by removing provisions elsewhere, rather than adding them). These were agreed without division. Of the amendments laid by Sarah Boyack:
Amendment 86 was withdrawn.
Amendment 87 was not moved.
Amendement 97 was disagreed to by division (For 2, Against 4, Abstentions 0).
Amendment 98 was disagreed to by division (For 1, Against 5, Abstentions 0).
Amendment 99 was disagreed to by division (For 1, Against 5, Abstentions 0).
Amendment 100 was not moved.
Amendment 14, in the name of Andy Wightman, proposed a progressive rate for Non-Domestic Rates, over which ministers would have rate-setting control. This replaced Amendment 2, which was lodged and then withdrawn due to an error. The Minister, referencing the figures given in the amendment, spoke of the loss of revenue, the impact this would have on council funding, and concerns about fairness. She explained that:
Non-domestic rates is a property tax. We endeavour to make it as progressive as possible, with the small business bonus scheme protecting businesses that occupy the smallest properties and the large business supplement applying to those that occupy the largest ones.
Local Government and Communities Committee 27 November 2019 [Draft], Kate Forbes, contrib. 161, http://www.scottish.parliament.uk/parliamentarybusiness/report.aspx?r=12396&c=2221012
Amendment 14 was disagreed to by division (For 1, Against 6, Abstentions 0).
Amendment 13, in the name of Graham Simpson, follows on from the suggestion in the Barclay Review that the Large Business Supplement should be set at the same rate in Scotland as it is in England. Members felt that this would, in effect, be the rejection of a devolved power, and expressed concerns that the current level of scrutiny of the Large Business Supplement would be lost if this change were made in primary legislation. Following debate, amendment 13 was withdrawn.
Both amendment 39, in the name of Alexander Stewart, and amendment 88, in the name of Sarah Boyack, sought to introduce measures for greater parliamentary scrutiny of the assessors and valuation process. Amendment 39 called for an annual review of the valuation process, and amendment 88 called for a review of the number of assessors in post every three years. Both the Committee and Minister expressed that, with work, amendments along such lines had merit, with some preference towards amendment 88. The Minister made a commitment to discuss with both members potentially bringing refined amendments forward at Stage 3.
Amendment 39 was withdrawn, and amendment 88 was not moved.
Amendment 3, laid by Andy Wightman, was developed as a response to a Barclay recommendation, which was considered but not brought forward, around the notion that all ratepayers should pay something. The amendment would introduce a mandatory minimum payment. Although Mr Wightman said there would be no impact on relief schemes, there were some concerns around this, particularly the Small Business Bonus Scheme. The amendment was disagreed to by division (For 1, Against 6, Abstentions 0).
Unless specified, all amendments in this section were lodged by Sarah Boyack.
Amendment 89, in the name of Sarah Boyack, sought to create some clarity about and increase awareness of the Business Growth Accelerator relief. The Minister suggested that whilst she would not support the motion, there was an opportunity for further discussion around statutory guidance. The amendment was withdrawn with the potential of a revised amendment being laid at Stage 3.
Amendments 90 and 91 were, grouped with amendment 92, intended to address issues around the climate emergency and the challenge of encouraging businesses to adopt more sustainable business practices by introducing rates relief for sustainable and positive business practices. Members were sympathetic to the aims of these amendments, but expressed some concerns around the specified positive business practices in amendment 91. It was also felt that more consultation might be needed. The Minister reminded members that it could introduce reliefs at any time without the need for legislation, and spoke of other incentives it had in place to promote positive business practices. Both amendments were disagreed to by division (90: For 3, Against 4, Abstentions 0; 91: For 1, Against 6, Abstentions 0)
Amendment 93 sought to make changes to the conditions of charitable relief for arms-length external bodies (ALEOs), namely to ensure that councils were not penalised in funding from central government for using ALEOs, which get charitable relief, to deliver services. The Minister argued that it would remove a financial disincentive for councils considering using ALEOs at a time when the Scottish Government has taken measures to limit their use. The amendment was withdrawn.
Amendments 40 and 41, in the name of the Minister, specified that guidance on granting rates relief to sports clubs should be laid before the Scottish Parliament. These were similar in aim to Sarah Boyack's amendments 94 and 95. The Committee voted in favour of Amendments 94 and 95, and against amendments 40 and 41, with both receiving the same voting result (For 2, Against 4, Abstentions).
Amendment 101, sought to prevent people from deliberately avoiding paying tax by providing local authorities with the legal tools to pursue any party for non-payment of Non-Domestic Rates when it can be shown that it was involved in evasion. This is similar in nature to Andy Wightman's amendment 84 (which was disagreed to). The Minister, again, suggested that a consultative approach would be preferable. The amendment was withdrawn.
Amendments 73-79 and 81-83, in the name of Liz Smith MSP (the only member to lodge amendments who is not a Committee member, or the Minister), sought to change the provisions in the Bill which would remove charitable rates relief from independent schools. As these amendments, for the most part, were in contradiction to the Committees conclusions and recommendations at Stage 1, detail on the debate, which fell along similar lines, has not been included.
All of these amendments were disagreed to by division. As one member was not present for votes on this group, the Convener exercised his casting vote where votes were tied.
Amendment 73 specified that any body entered in the Scottish Charity Register is eligible for remission or reduction of rates.
Amendment 73: (For 2, Against 4, Abstentions 0).
Amendments 74, 75 and 78 aimed to ensure that nurseries within independent schools would remain eligible for rates relief.
Amendment 74: (For 3, Against 3, Abstentions 0; amendment disagreed to on casting vote).
Amendment 75: (For 3, Against 3, Abstentions 0; amendment disagreed to on casting vote)
Amendment 78: (For 3, Against 3, Abstentions 0; amendment disagreed to on casting vote)
Amendments 76 and 77 made the provision for rates relief to still be available to mainstream independent schools in certain situations where they delivered education to children with additional support needs.
Amendment 76: (For 2, Against 4, Abstentions 0).
Amendment 77: not moved.
Amendment 79 would remove section 10 in its entirety.
Amendment 79: (For 2, Against 4, Abstentions 0).
Amendments 81-83 changed the timing of the commencement of Section 10, with a delay until 2022.
Amendment 81: (For 2, Against 4, Abstentions 0).
Amendment 82: (For 2, Against 4, Abstentions 0).
Amendment 83: (For 2, Against 4, Abstentions 0).
Amendment 80, in the name of Graham Simpson, gave an alternative timeline for the commencement of Section 10, with a delay until August 2021.
Amendment 80: (For 2, Against 3, Abstentions 1).
ALEO - Arms Length External Organisation
ATM - Auto-Telling Machine
CBI - Confederation of British Industry
COSLA - Convention of Scottish Local Authorities
DPLR - Delegated Powers and Law Reform
FSB - Federation of Small Businesses
NDR - Non-Domestic Rates
RV - Rateable Values
SCC - Scottish Chambers of Commerce
SRC - Scottish Retail Consortium
SSI - Scottish Statutory Instrument