Business Rate Supplements Act 2009

Power to impose business rate supplements

Power to impose a BRS

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• (1) A levying authority has power to impose a levy, to be called a “business rate supplement” (referred to in this Act as a “BRS”), on non-domestic ratepayers in its area.

• (2) The purpose of imposing a BRS is to raise money for expenditure on a project that the authority is satisfied will promote economic development in its area.

• (3) A person is a “non-domestic ratepayer” in the area of a levying authority if the person is, as regards a hereditament in the authority's area, subject to a non-domestic rate under—

• (a) section 43 of the 1988 Act (occupiers of properties), or

• (b) section 45 of that Act (owners of empty properties).

• (4) “The 1988 Act” means the Local Government Finance Act 1988 (c. 41).

Levying authorities

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• (1) In this Act, “levying authority” means—

• (a) the Greater London Authority;

• (b) a county council in England;

• (c) a district council for an area in England for which there is no county council;

• (d) a county council or county borough council in Wales.

• (2) The power conferred on a levying authority by section 1(1) may be exercised jointly with one or more other levying authorities.

• (3) Where two or more levying authorities are acting jointly by virtue of this section, a reference in this Act to a levying authority is (except where there is contrary provision) to be read as a reference to those authorities acting jointly.

Use of money raised by a BRS

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• (1) A levying authority must secure that the sums it receives in respect of a BRS are used only for expenditure—

• (a) on the project to which the BRS relates, and

• (b) that the authority would not have incurred had it not imposed the BRS.

• (2) A levying authority may use sums it receives in respect of a BRS to make payments in respect of money loaned for the purpose of providing funding for the project to which the BRS relates.

• (3) A levying authority must not use sums it receives in respect of a BRS to provide—

• (a) housing;

• (b) social services;

• (c) education services;

• (d) services for children;

• (e) health services;

• (f) services that the authority provides in the discharge of functions imposed by or under the Planning Acts (as defined by the Town and Country Planning Act 1990 (c. 8)).

• (4) Regulations may amend subsection (3) so as to add, vary or omit a reference to a matter.

• (5) The Greater London Authority may make arrangements with a functional body for some or all of the sums that the Greater London Authority receives in respect of a BRS imposed by it to be used by the body for expenditure on the project to which the BRS relates.

• (6) A reference to sums that a levying authority receives in respect of a BRS includes a reference to financial contributions made to it for the purpose of enabling the project to which the BRS relates to be carried out.

• (7) The reference in subsection (6) to financial contributions made to a levying authority includes, where the levying authority is not a billing authority, financial contributions—

• (a) made for the purpose specified in subsection (6) to a billing authority which is a lower-tier authority in relation to the levying authority, and

• (b) transferred to the levying authority.

• (8) A lower-tier authority is—

• (a) in relation to the Greater London Authority—

• (i) a London borough council, or

• (ii) the Common Council of the City of London in its capacity as a local authority;

• (b) in relation to a county council in England, a district council whose area forms part of the county council's area.

• (9) Where the Greater London Authority makes arrangements under subsection (5) with a functional body, this section applies to the body's use of sums that it receives in respect of the BRS as it applies to the Authority's use of sums that the Authority receives in respect of the BRS.

• (10) A reference to sums that a functional body receives in respect of a BRS is a reference to—

• (a) sums that the Greater London Authority transfers to the body for the purposes of arrangements under subsection (5) that relate to the BRS, and

• (b) financial contributions made to the body for the purpose specified in subsection (6).

• (11) In subsection (1)(b) as it is applied to a functional body by virtue of subsection (9), the reference to expenditure of the levying authority is to be read as a reference to expenditure of the functional body.

Involvement of ratepayers, etc.

Conditions for imposing a BRS

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A levying authority may not impose a BRS unless—

• (a) it has published a document that sets out the proposal for the imposition of the BRS (an “initial prospectus”),

• (b) it has consulted the relevant persons on the proposal,

• (c) a ballot has been held and the imposition of the BRS approved, and

• (d) it has published a document that sets out the arrangements for the imposition of the BRS (a “final prospectus”).

Prospectus

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• (1) Any initial or final prospectus must include the information specified in Schedule 1 (and may include such other information as the levying authority thinks appropriate).

• (2) The function of the levying authority of approving a final prospectus before publication is a function that must be discharged only by the whole authority; but that does not apply in the case of the Greater London Authority.

• (3) After publishing an initial or final prospectus, a levying authority must—

• (a) place an electronic copy of the published prospectus on its website, and

• (b) make copies of the published prospectus available for inspection at its principal office at all reasonable times of the day.

• (4) In a case where two or more levying authorities are acting jointly by virtue of section 2, each authority must separately—

• (a) discharge the function of approving a final prospectus before publication, and

• (b) comply with the duty imposed by subsection (3).

• (5) Regulations may amend Schedule 1 so as to add, vary or omit a description of information.

Consultation

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• (1) The relevant persons for the purposes of consultation on the proposal in an initial prospectus are—

• (a) each person who will be liable to pay the BRS;

• (b) each lower-tier authority in relation to the levying authority;

• (c) such other persons as the levying authority thinks appropriate.

• (2) A person is to be regarded for the purposes of subsection (1)(a) as a person who will be liable to pay a BRS if the levying authority thinks that the person will be liable to pay a chargeable amount for the first day of the chargeable period of the BRS.

• (3) A person is also to be regarded for the purposes of subsection (1)(a) as a person who will be liable to pay a BRS if the levying authority thinks that the person would, but for section 13(7) or (8), be liable to pay a chargeable amount for the first day of the chargeable period of the BRS.

• (4) A person is also to be regarded for the purposes of subsection (1)(a) as a person who will be liable to pay a BRS if the levying authority thinks that the person—

• (a) would, but for section 15 or 16, be liable to pay a chargeable amount for the first day of the chargeable period of the BRS, and

• (b) will be liable to pay a chargeable amount before the end of that period.

• (5) For the purposes of subsection (1)(c), a levying authority must, in particular, think whether it would be appropriate to consult persons who the authority thinks might become liable to pay a chargeable amount before the end of the chargeable period of the BRS.

• (6) The levying authority must publish a revised version of an initial prospectus if, in the light of the consultation on the proposal in the prospectus, the authority thinks that it is necessary or appropriate to do so.

• (7) A reference in section 5 to an initial prospectus includes a reference to an initial prospectus revised under subsection (6) of this section.

• (8) A reference in subsection (2), (3) or (4) to a chargeable amount does not include a reference to a chargeable amount of zero.

Holding of ballot

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• (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) The proposition to be voted on in a ballot on the imposition of a BRS is—

The [insert name of levying authority] proposes to introduce a business rate supplement. The proposal is set out in [insert title of prospectus]. Should the proposed business rate supplement be introduced?

• (4) A person is eligible to vote in a ballot on the imposition of a BRS if the person is within section 6(2), (3) or (4).

• (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Approval by ballot

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• (1) The imposition of a BRS is approved if—

• (a) a majority of the persons voting in the ballot have voted in favour of the imposition of the BRS, and

• (b) A exceeds B.

• (2) For the purposes of subsection (1)—

• “A” is the aggregate of the rateable values of each hereditament in respect of which a person voting in the ballot has voted in favour of the imposition of the BRS, and

• “B” is the aggregate of the rateable values of each hereditament in respect of which a person voting in the ballot has voted against the imposition of the BRS.

• (3) For the purposes of subsection (2), the rateable value of a hereditament is its rateable value on the day of the ballot.

Regulations about ballots

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• (1) Regulations may make provision in relation to the holding of a ballot on the imposition of a BRS.

• (2) The provision which may be made includes, in particular, provision about—

• (a) the timing of a ballot;

• (b) the form that a ballot may take;

• (c) who is to hold a ballot;

• (d) the conduct of a ballot.

• (3) The regulations may, in particular—

• (a) confer functions on a levying authority;

• (b) enable a levying authority to appoint an officer of its to exercise on its behalf a function conferred by virtue of paragraph (a) (a “ballot function”);

• (c) enable a levying authority to delegate to a lower-tier authority in relation to it the exercise of a ballot function in the area of that lower-tier authority;

• (d) enable a levying authority to delegate to a lower-tier authority in relation to it the exercise of a ballot function in the area of each other lower-tier authority in relation to the levying authority;

• (e) enable a lower-tier authority to which the exercise of a ballot function is delegated by virtue of paragraph (c) or (d) to appoint an officer of its to exercise the function on its behalf.

• (4) Regulations under this section may make provision as to who may cast a vote in a case where the person eligible to vote is a body corporate, partnership or unincorporated association.

• (5) Nothing in subsections (2) to (4) is to be taken as limiting the power conferred by subsection (1).

Variations

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• (1) A levying authority may vary a BRS in so far as the variation is of a kind that may be made in accordance with the final prospectus.

• (2) Otherwise, a levying authority may vary a BRS only if—

• (a) it has published a document that sets out the proposal for the variation,

• (b) it has consulted the relevant persons on the proposal,

• (c) ... a ballot on the proposal has been held and the variation approved, and

• (d) it has published a document that sets out the arrangements for making the variation.

• (3) A document published for the purposes of subsection (2)(a) or (d) must—

• (a) specify the amount that the authority expects to raise from the imposition of the BRS on the assumption that the variation is made (the specified amount to include the amount already raised from the imposition of the BRS),

• (b) specify the authority's estimate of the total cost of the project to which the BRS relates,

• (c) specify the day on which the variation will, if made, take effect, and

• (d) include, to the extent that the authority thinks appropriate, such other information as would be included in an initial or final prospectus if the proposal or arrangements were for the imposition of the BRS as varied.

• (4) Section 5 applies as follows in relation to the publication of a document for the purposes of subsection (2)(a) or (d)—

• (a) subsection (2) of that section applies to the approval of a document before publication for the purposes of subsection (2)(d) as it applies to the approval of a final prospectus before publication;

• (b) subsection (3) of that section applies to a document published for the purposes of subsection (2)(a) or (d) as it applies to a published initial or final prospectus;

• (c) subsection (4) of that section applies so far as necessary for the purposes of the applications made by paragraphs (a) and (b) of this subsection.

• (5) The relevant persons for the purposes of consultation on a proposal to vary a BRS are those who would be the relevant persons if the proposal were for the imposition of the BRS as varied; for that purpose, section 6 applies as if references to the first day of the chargeable period of the BRS were references to the day specified for the purposes of subsection (3)(c).

• (6) Section 6(6) applies in relation to a document published for the purposes of subsection (2)(a) as it applies in relation to an initial prospectus.

• (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (10) The proposition to be voted on in a ballot on a proposal to vary a BRS is—

The [insert name of levying authority] proposes to vary the business rate supplement set out in [insert title of prospectus and title of any document setting out a variation to the BRS]. The proposal is set out in [insert title of document setting out proposal]. Should the proposed variation be made?

• (11) A person is eligible to vote in a ballot on a proposal to vary a BRS if the person is within section 6(2), (3) or (4) (as applied by subsection (5) above); and sections 8 and 9 apply to a ballot on a proposal to vary a BRS as they apply to a ballot on a proposal for the imposition of a BRS.

• (12) A variation the purpose of which is to increase the number of persons liable to pay a chargeable amount may not be made in reliance on subsection (1) (and that subsection is to be read accordingly).

Liability to business rate supplements

Liability of non-domestic ratepayers

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• (1) This section applies in relation to a person who, as regards a hereditament, is subject to a non-domestic rate under section 43 or 45 of the 1988 Act in respect of a financial year.

• (2) The person is, in relation to that hereditament and in respect of that year, subject to such BRSs as are imposed for that year by the levying authority in whose area the hereditament is situated.

• (3) But a person subject to a non-domestic rate under section 45 of the 1988 Act (a “section 45 ratepayer”) is not subject to a BRS if—

• (a) paragraph 2 of Schedule 4ZB to that Act (empty properties: charitable rate relief) applies to the hereditament, or

• (b) the final prospectus for the BRS states that section 45 ratepayers are not to be subject to the BRS.

• (4) A person who is subject to a BRS in relation to a hereditament in respect of a financial year is liable to pay in respect of that year an amount calculated by—

• (a) finding the chargeable amount for each chargeable day, and

• (b) totalling the amounts found under paragraph (a).

• (5) A chargeable day is a day—

• (a) which falls within the financial year and the chargeable period of the BRS, and

• (b) on which the rateable value condition is met in relation to the hereditament.

• (6) The chargeable period of a BRS—

• (a) is the period for which the BRS is imposed, and

• (b) must not begin before the day on which the BRS is imposed.

• (7) The length of the chargeable period of a BRS must not exceed—

• (a) the length of the period specified as the chargeable period in the final prospectus, or

• (b) if the length of the chargeable period is varied in accordance with section 10, the length of the period as varied.

• (8) A reference to a BRS imposed for a financial year is to a BRS the chargeable period of which is or includes the whole or part of the financial year in question.

• (9) Subsection (3)(b) does not apply if, by virtue of section 10, section 45 ratepayers become subject to the BRS.

Rateable value condition

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• (1) The rateable value condition is (unless subsection (2) applies) met in relation to a hereditament on any day on which the rateable value of the hereditament exceeds the amount prescribed by regulations.

• (2) This subsection applies if—

• (a) part only of a hereditament is occupied, and

• (b) section 45 ratepayers are not subject to the BRS.

• (3) If subsection (2) applies, the rateable value condition is met in relation to the hereditament on any day on which the rateable value of the occupied part exceeds the amount prescribed under subsection (1).