Business Rates No 1 - Supplement

Although little used (so far at least) the business rates supplement (BRS) is a local tax add-on which in our straightened circumstances could possibly become popular with some higher tier local authorities.

BRS is a local tax which must be used for economic development purposes. It may be imposed under the Business Rates Supplements Act 2009 (subject to power of rejection (s 24) by the appropriate national authority). (See http://www.legislation.gov.uk/ukpga/2009/7/section/11 )

BRS is imposed on non-exempt no-domestic properties, ie those with rateable values (RVs) over £50,000. Exemptions (s 11(3)) and relief (s 15) apply under the 2009 Act to the BRS and there is provision (s 16 and sch 2) for an interaction with any levy under a Business Improvement District scheme (BID).

The one example (in London) is the Greater London Authority's BRS of 2p which contributes funds for Crossrail.   It is imposed on non-domestic properties with rateable values over £55,000 - as shown in the valuation list of April 2010. (See  http://www.london.gov.uk/crossrail-brs )

If BRS does take-off in a big way a change in the ratepayers' "say" is on the cards. At present ratepayers are able to vote on the proposals for a supplement if their a contribution will be greater than a third of the cost: this is about to change if the Localism Bill (cl 38) goes through. In future all proposals will require the consent of the majority of the ratepayers.