The Business Rate Supplements (BRS) Act 2009 came into effect on 1 April 2010. The Act provides powers for local authorities in England and Wales to levy additional business rates charges to specifically fund local economic development, such as infrastructure projects. There are no known plans for similar legislation in Scotland.
Our Rates Payment Management Services can remove all the hassle of rates budgeting, bills and payments, so if you would like to explore how this service can help you please call Jerry Schurder or your usual Gerald Eve contact.
The key features of the Act are as follows:
- County Councils, District Councils (for an area without a County Council) and the Greater London Authority have the power to levy a local supplement on the business rate from 1 April 2010;
- revenue from BRS will be raised and retained locally and will only be available for spending which would not have otherwise taken place on economic development initiatives or projects;
- any authority wishing to levy a BRS has a duty to produce a prospectus setting out the details of the proposed supplement and the project it will fund;
- no levying authority can impose a levy (whether for one or more BRS schemes in its area) amounting to a total of more than 2p per pound of RV. This is equivalent to about a 5% supplement on rates bills;
- authorities will be required to hold a statutory consultation on the proposals and to hold a ballot if the BRS will fund more than a third of the cost of the proposed economic development. When a ballot is required, there will have to be a majority of those voting both by number and by the Rateable Value of their properties concerned, before a BRS can come into force.
- regulations are being prepared covering procedural and administrative details which will include an exemption from BRS for all properties with assessments of RV £50,000 or less.
The only authority currently levying a Business Rates Supplement is the Greater London Authority, in order to assist with funding the development of Crossrail.
Rating revaluation 2010 >>
Empty property rates >>
Rates Payment Management Services >>
|
|