IRRV Alert May 3 2008

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The Government's Draft Legislative Programme 2008/09

 

 

The Government's Draft Legislative Programme 2008/09: revenues and benefits issues

Summary

 

The aim of the Draft Legislative Programme, published on 14 May, is to set out the Government’s current proposals for legislation, to be considered by Parliament in its next session, for comment and consultation before the final programme is published in the Queen’s Speech towards the end of the year.

The draft programme proposes 18 bills and refers to a number of non legislative actions that the Government plans to introduce to address the key challenges facing the country today. Although there is legislation addressing a broad range of issues, the Government is particularly focussed on delivery in four key areas: economic stability; making the most of your potential; personalisation and improvement of public services and handing power back to people.

 

The Government plans to bring forward a business rates supplement bill that would give upper tier local authorities the ability to levy a local supplement of up to 2 pence per pound of rateable value on the business rate for economic development – following consultation, and in some cases a ballot of businesses that would be affected;

 

The Government is committed to a radical reform package to extend and improve opportunities and incentives to work and upskill, and to encourage independence, choice, and control for disabled people. The Government remains committed to making progress towards the target on child poverty The Government anticipates Welfare Reform proposals will be published in the summer which would require legislation. A package of measures is being considered to produce a welfare reform bill which delivers value for money for the taxpayer. This would place greater emphasis on measures to help those who face barriers to work or have been out of work for a long time to become more independent and better skilled. Also under consideration are measures to streamline the benefit system and promote financial inclusion;

 

Welfare Reform Bill

The purpose of the Bill is to: further reform the welfare and benefit systems to improve support and incentives for people to move from benefits into work and to provide greater choice and control for disabled people. The Government remains committed to make progress towards the target on child poverty. The bill will be preceded by a green paper and full consultation which will look at options to modernise the benefit system, delivering value for money for the taxpayer while providing support for people at the time they need it most. The changes will also focus on promotion of personal responsibility and independence, making clearer the relationship between the support people can receive and the expectations of them to participate fully in society.

 

The main elements of the Bill are:

·         Measures to better enable people to take advantage of the considerable help on offer to them and where appropriate, to undertake training that is considered essential to finding employment;

·         A range of measures which strengthen the benefit contract between the individual and society – the individual’s right to support in exchange for clear personal responsibility for improving their own circumstances;

·         A number of measures to strengthen the requirements of non-resident parents to contribute to their children’s upbringing, as part of a package which champions personal responsibility in the welfare system.

·         Measures to modernise and simplify the benefit system, ensuring that support provides help at the time and in the manner most needed.

 

The main benefits of the Bill are:

·         Giving disabled people greater choice and control;

·         Strengthening parental responsibility;

·         Reducing welfare dependency;

·         Greater requirements to undertake work, training or other activity in preparation for work;

·         Increasing personal responsibility within the welfare system;

·         Delivering value for money for the taxpayer.

 

Consultation

The Government plans to publish a Green Paper followed by a full consultation.

 

Territorial extent

Given that the benefits system is not devolved in Wales or Scotland, the Bill will cover England, Wales and Scotland. The Government will work with the Northern Ireland Executive on its responsibilities in this area. The exceptions are the measures to provide greater choice and control for disabled people, which will apply to England only, and a number of minor measures, which apply to England and Wales only.

 

Other action in this area

In addition to the proposals in the Bill, the Government is also undertaking the following:

·         Introducing the Employment and Support Allowance from October 2008, which will focus on supporting people into work and will not automatically assume that because a person has a significant health condition or disability they are incapable of work;

·         The Carers Review, with proposals which may require primary legislation;

·         A review of Housing Benefit, conducted jointly with HM Treasury.

Business rate supplements bill

The purpose of the Bill is to: give upper tier local authorities (County Councils, Unitary Authorities and, in London, the Greater London Authority) the power to levy a local supplement on the business rate and retain the proceeds for economic development.

 

The main elements of the Bill are:

·         Creating a new power for upper tier local authorities to levy a local supplement on the business rate and to retain the proceeds for investment in that area;

·         Providing safeguards for business, including: a requirement that proceeds should be spent on economic development; consultation and, in certain circumstances, a ballot of businesses that would be affected; a national upper limit to the levy of 2p per £1 of rateable value; an exemption for all properties with a rateable value of £50,000 or less;

·         Flexibility for authorities to: decide the duration of the supplement; reduce liability for the supplement for properties above the £50,000 threshold; and to decide whether to offset Business Improvement Districts levies against liability for the supplement.

 

The main benefits of the Bill are:

·         Promoting the long-term economic growth and productivity of those areas that levy a supplement, by permitting investment in projects (e.g. transport infrastructure) that support economic growth, and which would not otherwise proceed.

 

Consultation

Business rate supplements: a White Paper (October 2007) followed extensive public debate on this subject, and the measures in it will not be subject to further consultation before the Bill is introduced. However, the Government will be consulting on the detail of implementing the scheme through secondary legislation and guidance, for example arrangements for votes on supplements where required and defining “economic development”. In the meantime any suggestions on detailed implementation of the policy set out in the White Paper should be sent to contactus@communities.gov.uk.

 

Territorial extent

The Bill would extend to England and Wales only. The Government will work closely with the Welsh Assembly Government in relation to their responsibilities in this area.

 

Other action in this area

In addition to the arrangements in the Bill the Government:

·         plans to develop Multi-Area Agreements between local authorities and their partners to improve the economic development outcomes across a sub-region;

·         is consulting on proposals to introduce a new statutory duty to assess local economic conditions and to give regional development agencies lead esponsibility for regional planning (in response to the Review of sub-national economic development and regeneration).

 

To view this document in it's entirety click on to the link below

http://www.official-documents.gov.uk/document/cm73/7372/7372.pdf


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