Business Rate Supplements Bill

House of Commons

Session 2008 - 09
Internet Publications
Other Bills before Parliament

Business Rate Supplements Bill

Business Rate Supplements Bill
19

General
30
Interpretation
(1)
In this Act, the “appropriate national authority” means—
(a)
in relation to a levying authority whose area is in England or in relation
to hereditaments in England, the Secretary of State;
5
(b)
in relation to a levying authority whose area is in Wales or in relation
to hereditaments in Wales, the Welsh Ministers.
(2)
For the purposes of this Act, an expression in the first column of the Table is
defined or otherwise explained by the provision of this Act, or of the 1988 Act,
the 1999 Act or the 2003 Act, specified in the second column.
10

Expression
Provision

BID levy
Section 41(2) of the 2003 Act

Billing authority
Section 144(2) of the 1988 Act

BRS
Section 1(1)

Chargeable amount
Section 13

15

Chargeable day
Section 11(5)

Chargeable period
Section 11(6)

Final prospectus
Section 4

Financial year
Section 145(3) of the 1988 Act

Financial year, imposition of
Section 11(8)

20

BRS for

Functional body
Section 424 of the 1999 Act

Hereditament
Section 64 of the 1988 Act

Initial prospectus
Section 4

Levying authority
Section 2(1)

25

Local non-domestic rating list
Section 41(1) of the 1988 Act

Lower-tier authority
Section 3(8)

Rateable value
Section 12(9)

Section 45 ratepayer
Section 11(3)

Sums collected by a billing
Section 22(7)

30

authority in respect of a BRS

Sums received by a functional
Section 3(10)

body in respect of a BRS

Business Rate Supplements Bill
20

Expression
Provision

Sums received by a levying
Section 3(6)

authority in respect of a BRS

The 1988 Act
Section 1(4)

(3)
In subsection (2)—
5
“the 1999 Act” means the Greater London Authority Act 1999 (c. 29), and
“the 2003 Act” means the Local Government Act 2003 (c. 26).
31
Crown application
This Act binds the Crown.
32
Commencement, extent and short title
10
(1)
Sections 28 to 31 and this section come into force on the day on which this Act
is passed.
(2)
The remaining provisions of this Act come into force in accordance with such
provision as the appropriate national authority may make by order.
(3)
This Act extends to England and Wales only.
15
(4)
This Act may be cited as the Business Rate Supplements Act 2009.

Business Rate Supplements Bill
Schedule 1 — Information to be included in a prospectus for a BRS
21

Schedules
Schedule 1
Section 5

Information to be included in a prospectus for a BRS
The project
1
A description of the work to be undertaken in carrying out the project to
5
which the BRS relates.
2
A description of any work already undertaken in carrying out the project.
3
A description of any work undertaken by or on behalf of the levying
authority to assess the feasibility of the project, and an explanation of the
conclusions that the authority draws from that work.
10
4
The authority’s estimate of the total cost of the project.
5
The authority’s assessment of—
(a)
the likely impact of the imposition of the BRS on businesses in the
authority’s area;
(b)
the likely benefits of the project for its area (including in terms of
15
economic development);
(c)
the relationship between the information given under paragraph (a)
and the information given under paragraph (b).
6
If planning permission or any other consent is required for an aspect of the
project, information about—
20
(a)
whether the consent has been given, and
(b)
if it has, when it was given and how a copy of it (and of the
application for it) can be obtained.
7
A description of the expenditure for which the sums the authority receives
in respect of the BRS are going to be used (and, if they are going to be used
25
for only certain aspects of a project, a description of those aspects), and the
authority’s assessment of the impact of that expenditure on the project.
8
If some or all of the sums the authority receives in respect of the BRS are
going to be used to make payments in respect of money loaned for the
purpose of providing funding for the project, information about—
30
(a)
the amount of money loaned,
(b)
the period for which it is loaned,
(c)
the other principal terms on which it is loaned (in particular, the rates
of interest),
(d)
the consequences of making payments in respect of the loan earlier
35
than they are required to be made, and

Business Rate Supplements Bill
Schedule 1 — Information to be included in a prospectus for a BRS
22

(e)
the arrangements that the authority would make if it thought that it
was necessary for the amount of money loaned to be increased or the
period for which it is loaned to be extended.
9
An explanation of any arrangements that are going to be made under section
3(5), including in particular—
5
(a)
a statement as to which functional body or bodies the arrangements
are going to involve, and
(b)
a description of the expenditure for which sums that the functional
body receives in respect of the BRS are going to be used.
10
An explanation of how the authority expects to discharge the duty under
10
section 3(1) by reference to the expenditure described for the purposes of
paragraphs 7 to 9.
11
The authority’s policy for providing those liable to pay chargeable amounts
with information about expenditure incurred and work undertaken on the
project (including, in particular, an explanation of how and when such
15
information is to be provided).
The amount of the BRS
12
The amount the authority expects to raise from the imposition of the BRS
(and, where the BRS is to be imposed for more than one financial year, the
amount the authority expects to raise for each financial year).
20
13
The amount of the multiplier for each financial year for which the BRS is to
be imposed.
Liability to the BRS
14
The authority’s policy on whether section 45 ratepayers are to be liable to the
BRS.
25
15
The date on which the chargeable period is to begin, and its duration.
16
An explanation of the rules for the application of the reliefs (if any) to be
applied in relation to the BRS under section 15.
17
An explanation of the rules for cases within section 16(1) (interaction with
BID levy).
30
18
An explanation of the arrangements for the collection of sums due in respect
of the BRS (in particular, as to timing and how the arrangements compare
with those for the collection of non-domestic rates).
Ballot on the imposition of the BRS
19
In an initial prospectus, a statement as to—
35
(a)
whether there is to be a ballot on the imposition of the BRS, and
(b)
if there is, whether by virtue of paragraph (a) or (b) of section 7(1).
20
In a final prospectus, a statement as to—
(a)
whether there was a ballot on the imposition of the BRS, and
(b)
if there was, whether by virtue of paragraph (a) or (b) of section 7(1),
40
and what the result was.

Business Rate Supplements Bill
Schedule 2 — Accounting
23

Variations and contingencies
21
The authority’s policy for deciding whether and to what extent—
(a)
to vary the amount of the multiplier;
(b)
to vary the length of the chargeable period;
(c)
to make other variations to the BRS.
5
22
The authority’s policy for publicising such variations before they take effect.
23
The authority’s policy for a case where it thinks that the project is likely to—
(a)
cost more than the authority was expecting;
(b)
take more time to complete than the authority was expecting;
(c)
cost less than the authority was expecting;
10
(d)
take less time to complete than the authority was expecting.
Schedule 2
Section 23

Accounting
Revenue accounts
1     (1)
A levying authority that imposes a BRS—
15
(a)
must, in accordance with proper practices, keep a revenue account
that is solely for that BRS, and
(b)
must secure that such sums as the authority receives in respect of the
BRS are credited to that account.
      (2)
A functional body with whom the Greater London Authority makes
20
arrangements under section 3(5)—
(a)
must, in accordance with proper practices, keep a revenue account
that is solely for the BRS to which the arrangements relate, and
(b)
must secure that such sums as the body receives in respect of the BRS
are credited to that account.
25
      (3)
In a case where two or more levying authorities are acting jointly by virtue
of section 2, each authority must comply separately with the duties imposed
by sub-paragraph (1).
Collection funds
30
2     (1)
Regulations may make provision—
(a)
for sums collected in respect of a BRS by a billing authority which is
a levying authority to be transferred from its collection fund to its
revenue account for the BRS;
(b)
for sums collected in respect of a BRS by a billing authority which is
35
not a levying authority to be transferred from the billing authority’s
collection fund to the levying authority’s revenue account for the
BRS.
      (2)
Regulations under this paragraph-

Business Rate Supplements Bill
Schedule 2 — Accounting
24

(a)
may include such provision for the purposes of this Act as may be
included in regulations under section 89 or 99 of the 1988 Act (funds)
for the purposes of that Act;
(b)
may amend, or apply (with or without modifications), any provision
of regulations made under either of those sections;
5
(c)
are to have effect subject to such provision (if any) as is made by
virtue of section 22(1).
Refunds and credits
3     (1)
Regulations may provide for refunds or credits to be given in a case where—
(a)
the imposition of a BRS has come to an end, and
10
(b)
the levying authority’s, or a functional body’s, revenue account for
the BRS is in credit.
      (2)
The regulations may, in particular—
(a)
if the levying authority is not a billing authority, require it to transfer
the sum standing to the credit of its revenue account in equal
15
proportions to each billing authority which is a lower-tier authority
in relation to it;
(b)
if the levying authority is a billing authority, authorise it to use a
prescribed proportion of the sum standing to the credit of its revenue
account to meet administrative expenses;
20
(c)
authorise a billing authority which is a lower-tier authority in
relation to the levying authority to use a prescribed proportion of the
sum it receives by virtue of paragraph (a) to meet administrative
expenses;
(d)
require a functional body to transfer the sum standing to the credit
25
of its revenue account to the levying authority’s revenue account.
      (3)
In this paragraph, “administrative expenses”, in relation to an authority, are
expenses it incurs in giving a credit or refund by virtue of this paragraph.
Supplementary
4     (1)
In section 90 of the 1988 Act (payments to and from collection fund)—
30
(a)
in subsection (1), after paragraph (c) insert—
“(ca)
sums received by the authority in respect of any
business rate supplement,”
(b)
after that subsection insert—
“(1A)
The reference in subsection (1)(ca) to sums received by a
35
billing authority in respect of business rate supplements—
(a)
includes a reference to financial contributions made
to it for the purpose of enabling the project to which a
business rate supplement relates to be carried out, but
(b)
does not include a reference to sums returned or
40
transferred to it by virtue of section 24(3)(b) of, or
paragraph 3(2)(a) of Schedule 2 to, the Business Rate
Supplements Act 2009.”
(c)
in subsection (2), after paragraph (b) insert—
“(ba)
payments to be made by the authority to a levying
45
authority in accordance with provision made by or
under the Business Rate Supplements Act 2009,”.

Business Rate Supplements Bill
Schedule 2 — Accounting
25

      (2)
The reference in section 22(2) to section 90 of the 1988 Act includes the
amendments made to that section by sub-paragraph (1) of this paragraph.
Further provision
5
Regulations may make further provision in relation to revenue accounts for
BRSs.
5