Overview

The Business Rate Supplements Act 2009 grants the Greater London Authority and certain local authorities the power to levy a charge (a "business rate supplement" or BRS) on non-domestic ratepayers to fund projects aimed at boosting economic development. This levy is subject to specific conditions, including public consultation and, in some cases, a ballot of ratepayers.

Description

The Act allows specified levying authorities (Greater London Authority, county and district councils in England, and county and county borough councils in Wales) to impose a BRS. The funds raised must be used solely for economic development projects that the authority wouldn't have funded otherwise, excluding uses like housing, social services, or education. The imposition of a BRS requires: publishing a prospectus detailing the proposal, consulting relevant parties (including ratepayers and lower-tier authorities), holding a ballot if a certain threshold of expenditure is met or the authority deems it necessary, and publishing a final prospectus outlining the levy's details. The Act sets out formulas for calculating the chargeable amount for each ratepayer, considering factors like rateable value and existing rate relief schemes. It also addresses issues like joint ownership, joint occupation, and death of ratepayers. There are provisions for the interaction with existing Business Improvement District (BID) levies, enabling potential offsetting of payments. The Secretary of State or Welsh Ministers have oversight and can cancel a BRS if they believe the levying authority has acted inconsistently with provided information. The Act includes detailed provisions regarding administration, collection, and accounting for BRS funds.

Government Spending

The Act does not directly impact UK government spending. Instead, it allows local authorities to raise additional revenue through a levy on non-domestic ratepayers. The government's role is primarily one of oversight and regulation.

Groups Affected

• Non-domestic ratepayers: May face an additional levy, impacting their business costs. The amount will depend on their rateable value and any applicable relief.
• Levying authorities: Gain the power to raise funds for economic development projects, but also take on administrative responsibilities and are subject to government oversight.
• Billing authorities: Responsible for collecting the BRS and may incur additional administrative expenses.
• Businesses in Business Improvement Districts (BIDs): May experience interaction with existing BID levies, potentially leading to adjustments in their payments.
• Secretary of State/Welsh Ministers: Have oversight of the process, can intervene if necessary, and issue guidance to levying authorities.

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