The purpose of the Bill is to:
Enable upper tier local authorities and the Greater London Authority to levy a supplement on the business rate and retain the proceeds to use to promote economic development in their local areas.
The main benefits of the Bill would be:
· To give local authorities new flexibilities to set a supplement on the current national business rate of up to 2p per pound of rateable value, to be used to promote economic development in their local area.
· The Bill would provide a vital new tool for councils to promote long-term economic growth, working with local businesses and the local community. These measures were recommended by Sir Michael Lyons in his inquiry into local government.
· The Bill would include a national upper limit on the Supplement of 2p per pound of rateable value, and an exemption for business properties with a rateable value of £50,000 or less.
· Councils will have a legal duty to consult businesses and other stakeholders before introducing a Supplement – where a supplement will fund more than a third of any one project, businesses will have the opportunity to vote.
Related documents:
· Business rate supplements: a White Paper, October 2007 (PDF, Treasury website, opens in new browser window)
· Draft legislative programme for 2008-09, May 2008 (PDF, DLP website, opens in new browser window)
Existing legislation in this area is:
· The Bill will amend the Local Government Finance Act 1988, the Non-Domestic Rating (Information) Act 1996 and the State Immunity Act 1978
Devolution:
· The Bill would extend to England and Wales only.
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