Business Rates Supplement Bill

IoD comment:

The IoD strongly opposes the Business Rates Supplement Bill in principle. It would be an additional burden on business which bears no relation to profile and could jeopardise their commercial viability. The Government has urgently to rethink this policy if it is really serious about helping businesses through the recession. The economic impact of these regulations will be felt in lost jobs.

Bill summary

The Bill will create a new power for upper tier local authorities in England and Wales to levy a local supplement on the business rate and to retain the proceeds for investment in that area.

Key areas:

Only the highest tier of local authority will be entitled to levy rates; in London the power will rest with the Greater London Authority.

• business rate supplement revenues must be spent on economic development
• a national upper limit of 2p per £1 of rateable value will apply
• stipulations are made for consultation with business and matters concerning the prospectus for each scheme
• circumstances are specified in which a ballot will be required and provisions made for regulating such ballots
• all properties with a rateable value of £50,000 or less will be exempt.