To ask the Secretary of State for Communities and Local Government (1) whether under the business rates deferral scheme local authorities will be required to issue a business with a rebate in cases where that business had already paid more than 40 per cent. of its 2009-10 rates liability at the time the deferral scheme became operational; (278390)

As announced on 31 March 2009 and confirmed at Budget, the Government will enable business rate payers to defer payment of 60 per cent. of the annual RPI inflation increase in their 2009-10 business rates bills until 2010-11 and 2011-12. Ratepayers occupying property that received transitional relief in 2008-09 will in addition be able to defer payment of 60 per cent. of the increase in their 2009-10 rates bills due to the end of the 2005 transitional relief scheme.

The Government do not have the power to make the regulations that will implement the scheme apply retrospectively. So where a ratepayer has, for whatever reason, already paid their full liability for 2009-10 under the existing legislative scheme, the billing authority will not be able to grant the ratepayer a deferral and give the ratepayer a refund. However, all ratepayers with enough outstanding 2009-10 rates liabilities will be able to defer the amounts set out above, which will be deducted from their remaining 2009-10 instalment payments. Those whose outstanding rates liability is less than the amount they can defer will be able to defer whatever is remaining of their 2009-10 liability.

To ask the Secretary of State for Communities and Local Government pursuant to the answer of 1 June 2009, Official Report, column 202W, on Local Government Finance Act 1988, (1) whether she expects July 2009 to be the first billing month for companies using the business rates deferral scheme; and if she will make a statement; (278454)

As announced on 31 March 2009, the Government are planning to bring regulations implementing the business rates deferral scheme into force by the end of July.

Further details on the timetable for implementation and the availability of the scheme to ratepayers are described in the business rate information letter issued on 5 June 2009. This letter, which was sent to all billing authorities in England, can be accessed at:

http://www.local.communities.gov.uk/finance/busratsl.htm

I have placed a copy of the letter in the Library of the House.

To ask the Secretary of State for Communities and Local Government pursuant to the answer of 1 June 2009, Official Report, column 203W, on non-domestic rates, whether the full funding by her Department of costs incurred by local authorities in administering the business rates deferral scheme is taken into account in the 2009-10 budget for her Department, as outlined in Table C11 on page 241 of the 2009 Budget Red Book. (278419)

The figures cited in Table C11 of the 2009 Financial Statement and Budget Report setting out the Departmental Expenditure Limits for Communities and Local Government cover costs associated with implementing deferral of business rate payments.

Any net additional costs to local government as a whole arising from the business rates deferral scheme will be fully funded under the new burdens principle.