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confer power on the Greater London Authority and certain local authorities |
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to impose a levy on non-domestic ratepayers to raise money for expenditure |
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on projects expected to promote economic development; and for connected |
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Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and |
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consent of the Lords Spiritual and Temporal, and Commons, in this present |
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Parliament assembled, and by the authority of the same, as follows:— |
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Power to impose business rate supplements |
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(1) | A levying authority has power to impose a levy, to be called a “business rate |
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supplement” (referred to in this Act as a “BRS”), on non-domestic ratepayers in |
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(2) | The purpose of imposing a BRS is to raise money for expenditure on a project |
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that the authority is satisfied will promote economic development in its area. |
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(3) | A person is a “non-domestic ratepayer” in the area of a levying authority if the |
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person is, as regards a hereditament in the authority’s area, subject to a non- |
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(a) | section 43 of the 1988 Act (occupiers of properties), or |
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(b) | section 45 of that Act (owners of empty properties). |
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(4) | “The 1988 Act” means the Local Government Finance Act 1988 (c. 41). |
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(1) | In this Act, “levying authority” means— |
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(a) | the Greater London Authority; |
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(b) | a county council in England; |
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(c) | a district council for an area in England for which there is no county |
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(d) | a county council or county borough council in Wales. |
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(2) | The power conferred on a levying authority by section 1(1) may be exercised |
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jointly with one or more other levying authorities. |
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(3) | Where two or more levying authorities are acting jointly by virtue of this |
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section, a reference in this Act to a levying authority is (except where there is |
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contrary provision) to be read as a reference to those authorities acting jointly. |
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3 | 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 |
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are used only for expenditure— |
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(a) | on the project to which the BRS relates, and |
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(b) | that the authority would not have incurred had it not imposed the BRS. |
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(2) | A levying authority may use sums it receives in respect of a BRS to make |
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payments in respect of money loaned for the purpose of providing funding for |
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the project to which the BRS relates. |
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(3) | A levying authority must not use sums it receives in respect of a BRS to |
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(d) | services for children; |
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(f) | services that the authority provides in the discharge of functions |
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imposed by or under the Planning Acts (as defined by the Town and |
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Country Planning Act 1990 (c. 8)). |
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(4) | Regulations may amend subsection (3) so as to add, vary or omit a reference to |
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(5) | The Greater London Authority may make arrangements with a functional |
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body for some or all of the sums that the Greater London Authority receives in |
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respect of a BRS imposed by it to be used by the body for expenditure on the |
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project to which the BRS relates. |
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(6) | A reference to sums that a levying authority receives in respect of a BRS |
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includes a reference to financial contributions made to it for the purpose of |
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enabling the project to which the BRS relates to be carried out. |
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(7) | The reference in subsection (6) to financial contributions made to a levying |
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authority includes, where the levying authority is not a billing authority, |
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(a) | made for the purpose specified in subsection (6) to a billing authority |
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which is a lower-tier authority in relation to the levying authority, and |
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(b) | transferred to the levying authority. |
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(8) | A lower-tier authority is— |
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(a) | in relation to the Greater London Authority— |
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(i) | a London borough council, or |
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(ii) | the Common Council of the City of London in its capacity as a |
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(b) | in relation to a county council in England, a district council whose area |
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forms part of the county council’s area. |
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(9) | Where the Greater London Authority makes arrangements under subsection |
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(5) with a functional body, this section applies to the body’s use of sums that it |
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receives in respect of the BRS as it applies to the Authority’s use of sums that |
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the Authority receives in respect of the BRS. |
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(10) | A reference to sums that a functional body receives in respect of a BRS is a |
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(a) | sums that the Greater London Authority transfers to the body for the |
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purposes of arrangements under subsection (5) that relate to the BRS, |
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(b) | financial contributions made to the body for the purpose specified in |
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(11) | In subsection (1)(b) as it is applied to a functional body by virtue of subsection |
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(9), the reference to expenditure of the levying authority is to be read as a |
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reference to expenditure of the functional body. |
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Involvement of ratepayers, etc. |
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4 | Conditions for imposing a BRS |
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A levying authority may not impose a BRS unless— |
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(a) | it has published a document that sets out the proposal for the |
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imposition of the BRS (an “initial prospectus”), |
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(b) | it has consulted the relevant persons on the proposal, |
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(c) | where there is to be a ballot on the imposition of the BRS, the ballot has |
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been held and the imposition of the BRS approved, and |
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(d) | it has published a document that sets out the arrangements for the |
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imposition of the BRS (a “final prospectus”). |
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(1) | Any initial or final prospectus must include the information specified in |
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Schedule 1 (and may include such other information as the levying authority |
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(2) | The function of the levying authority of approving a final prospectus before |
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publication is a function that must be discharged only by the whole authority; |
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but that does not apply in the case of the Greater London Authority. |
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(3) | After publishing an initial or final prospectus, a levying authority must— |
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(a) | place an electronic copy of the published prospectus on its website, and |
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(b) | make copies of the published prospectus available for inspection at its |
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principal office at all reasonable times of the day. |
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(4) | In a case where two or more levying authorities are acting jointly by virtue of |
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section 2, each authority must separately— |
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(a) | discharge the function of approving a final prospectus before |
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(b) | comply with the duty imposed by subsection (3). |
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(5) | Regulations may amend Schedule 1 so as to add, vary or omit a description of |
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(1) | The relevant persons for the purposes of consultation on the proposal in an |
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(a) | each person who will be liable to pay the BRS; |
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(b) | each lower-tier authority in relation to the levying authority; |
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(c) | such other persons as the levying authority thinks appropriate. |
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(2) | A person is to be regarded for the purposes of subsection (1)(a) as a person who |
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will be liable to pay a BRS if the levying authority thinks that the person will |
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be liable to pay a chargeable amount for the first day of the chargeable period |
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(3) | A person is also to be regarded for the purposes of subsection (1)(a) as a person |
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who will be liable to pay a BRS if the levying authority thinks that the person |
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would, but for section 13(7) or (8), be liable to pay a chargeable amount for the |
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first day of the chargeable period of the BRS. |
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(4) | A person is also to be regarded for the purposes of subsection (1)(a) as a person |
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who will be liable to pay a BRS if the levying authority thinks that the person— |
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(a) | would, but for section 15 or 16, be liable to pay a chargeable amount for |
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the first day of the chargeable period of the BRS, and |
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(b) | will be liable to pay a chargeable amount before the end of that period. |
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(5) | For the purposes of subsection (1)(c), a levying authority must, in particular, |
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think whether it would be appropriate to consult persons who the authority |
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thinks might become liable to pay a chargeable amount before the end of the |
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chargeable period of the BRS. |
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(6) | The levying authority must publish a revised version of an initial prospectus |
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if, in the light of the consultation on the proposal in the prospectus, the |
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authority thinks that it is necessary or appropriate to do so. |
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(7) | A reference in section 5 to an initial prospectus includes a reference to an initial |
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prospectus revised under subsection (6) of this section. |
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(8) | A reference in subsection (2), (3) or (4) to a chargeable amount does not include |
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a reference to a chargeable amount of zero. |
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(1) | There must be a ballot on the imposition of a BRS if— |
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(a) | A is more than one third of B, or |
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(b) | the initial prospectus states that, even though paragraph (a) does not |
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apply in relation to the BRS, the levying authority nevertheless thinks |
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that there should be a ballot on the imposition of the BRS. |
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(2) | For the purposes of subsection (1)(a)— |
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“A” is the amount specified in the initial prospectus as the amount the |
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authority expects to raise from the imposition of the BRS, and |
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“B” is the amount specified in the initial prospectus as the amount the |
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authority estimates as the total cost of the project to which the BRS |
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(3) | The proposition to be voted on in a ballot on the imposition of a BRS is— |
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“The [insert name of levying authority] proposes to introduce a business |
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rate supplement. The proposal is set out in [insert title of prospectus]. |
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Should the proposed business rate supplement be introduced?” |
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(4) | A person is eligible to vote in a ballot on the imposition of a BRS if the person |
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is within section 6(2), (3) or (4). |
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(5) | In a case where a revised initial prospectus is published under section 6(6), a |
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reference in this section to an initial prospectus is a reference to the revised |
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(1) | If a ballot on the imposition of a BRS is held, the imposition of the BRS is |
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(a) | a majority of the persons voting in the ballot have voted in favour of the |
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imposition of the BRS, and |
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(2) | F or the purposes of subsection (1)— |
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“A” is the aggregate of the rateable values of each hereditament in respect |
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of which a person voting in the ballot has voted in favour of the |
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imposition of the BRS, and |
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“B” is the aggregate of the rateable values of each hereditament in respect |
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of which a person voting in the ballot has voted against the imposition |
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(3) | For the purposes of subsection (2), the rateable value of a hereditament is its |
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rateable value on the day of the ballot. |
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9 | Regulations about ballots |
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(1) | Regulations may make provision in relation to the holding of a ballot on the |
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(2) | The provision which may be made includes, in particular, provision about— |
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(a) | the timing of a ballot; |
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(b) | the form that a ballot may take; |
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(c) | who is to hold a ballot; |
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(d) | the conduct of a ballot. |
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(3) | The regulations may, in particular— |
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(a) | confer functions on a levying authority; |
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(b) | enable a levying authority to appoint an officer of its to exercise on its |
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behalf a function conferred by virtue of paragraph (a) (a “ballot |
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(c) | enable a levying authority to delegate to a lower-tier authority in |
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relation to it the exercise of a ballot function in the area of that lower- |
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(d) | enable a levying authority to delegate to a lower-tier authority in |
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relation to it the exercise of a ballot function in the area of each other |
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lower-tier authority in relation to the levying authority; |
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(e) | enable a lower-tier authority to which the exercise of a ballot function |
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is delegated by virtue of paragraph (c) or (d) to appoint an officer of its |
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to exercise the function on its behalf. |
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(4) | Regulations under this section may make provision as to who may cast a vote |
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in a case where the person eligible to vote is a body corporate, partnership or |
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unincorporated association. |
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(5) | Nothing in subsections (2) to (4) is to be taken as limiting the power conferred |
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(1) | A levying authority may vary a BRS in so far as the variation is of a kind that |
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may be made in accordance with the final prospectus. |
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(2) | Otherwise, a levying authority may vary a BRS only if— |
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(a) | it has published a document that sets out the proposal for the variation, |
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(b) | it has consulted the relevant persons on the proposal, |
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(c) | where there was a ballot on the imposition of the BRS or where there is |
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to be a ballot on the proposal by virtue of subsection (7), a ballot on the |
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proposal has been held and the variation approved, and |
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(d) | it has published a document that sets out the arrangements for making |
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(3) | A document published for the purposes of subsection (2)(a) or (d) must— |
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(a) | specify the amount that the authority expects to raise from the |
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imposition of the BRS on the assumption that the variation is made (the |
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specified amount to include the amount already raised from the |
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(b) | specify the authority’s estimate of the total cost of the project to which |
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(c) | specify the day on which the variation will, if made, take effect, and |
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(d) | include, to the extent that the authority considers appropriate, such |
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other information as would be included in an initial or final prospectus |
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if the proposal or arrangements were for the imposition of the BRS as |
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(4) | Section 5 applies as follows in relation to the publication of a document for the |
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purposes of subsection (2)(a) or (d)— |
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(a) | subsection (2) of that section applies to the approval of a document |
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before publication for the purposes of subsection (2)(d) as it applies to |
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the approval of a final prospectus before publication; |
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(b) | subsection (3) of that section applies to a document published for the |
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purposes of subsection (2)(a) or (d) as it applies to a published initial or |
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(c) | subsection (4) of that section applies so far as necessary for the purposes |
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of the applications made by paragraphs (a) and (b) of this subsection. |
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(5) | The relevant persons for the purposes of consultation on a proposal to vary a |
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BRS are those who would be the relevant persons if the proposal were for the |
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imposition of the BRS as varied; for that purpose, section 6 applies as if |
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references to the first day of the chargeable period of the BRS were references |
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to the day specified for the purposes of subsection (3)(c). |
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(6) | Section 6(6) applies in relation to a document published for the purposes of |
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subsection (2)(a) as it applies in relation to an initial prospectus. |
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(7) | There must be a ballot on a proposal to vary a BRS if— |
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(a) | A is more than one third of B, or |
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(b) | the document published for the purposes of subsection (2)(a) states |
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that, even though paragraph (a) of this subsection does not apply in |
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relation to the BRS, the levying authority nevertheless thinks that there |
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should be a ballot on the proposal. |
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(8) | For the purposes of subsection (7)(a)— |
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“A” is the amount specified for the purposes of subsection (3)(a) in the |
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document published for the purposes of subsection (2)(a); |
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“B” is the amount specified for the purposes of subsection (3)(b) in that |
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(9) | In a case where a revised document is published by virtue of subsection (6), a |
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reference in subsection (7) or (8) to a document published for the purposes of |
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subsection (2)(a) is a reference to the revised document. |
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(10) | The proposition to be voted on in a ballot on a proposal to vary a BRS is— |
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“The [insert name of levying authority] proposes to vary the business rate |
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supplement set out in [insert title of prospectus and title of any document |
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setting out a variation to the BRS]. The proposal is set out in [insert title of |
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document setting out proposal]. Should the proposed variation be made?” |
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(11) | A person is eligible to vote in a ballot on a proposal to vary a BRS if the person |
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is within section 6(2), (3) or (4) (as applied by subsection (5) above); and |
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sections 8 and 9 apply to a ballot on a proposal to vary a BRS as they apply to |
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a ballot on a proposal for the imposition of a BRS. |
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(12) | A variation the purpose of which is to increase the number of persons liable to |
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pay a chargeable amount may not be made in reliance on subsection (1) (and |
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that subsection is to be read accordingly). |
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Liability to business rate supplements |
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11 | Liability of non-domestic ratepayers |
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(1) | This section applies in relation to a person who, as regards a hereditament, is |
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subject to a non-domestic rate under section 43 or 45 of the 1988 Act in respect |
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(2) | The person is, in relation to that hereditament and in respect of that year, |
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subject to such BRSs as are imposed for that year by the levying authority in |
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whose area the hereditament is situated. |
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(3) | But a person subject to a non-domestic rate under section 45 of the 1988 Act (a |
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“section 45 ratepayer”) is not subject to a BRS if— |
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(a) | section 45A of that Act (empty properties: zero rating for charities and |
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amateur sports clubs) applies to the hereditament, or |
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(b) | the final prospectus for the BRS states that section 45 ratepayers are not |
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to be subject to the BRS. |
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(4) | A person who is subject to a BRS in relation to a hereditament in respect of a |
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financial year is liable to pay in respect of that year an amount calculated by— |
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(a) | finding the chargeable amount for each chargeable day, and |
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(b) | totalling the amounts found under paragraph (a). |
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(5) | A chargeable day is a day— |
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