Draft Business Rate Supplements Bill

The Bill would see the introduction of a new power for local authorities in England to raise and retain local supplements on the national business rate in order to fund projects that will promote economic development.

The main elements of the Bill are to create a new power for upper tierlocal authorities to levy a local supplement on the business rate andto retain the proceeds for investment in that area.

The Bill aims to promote the long-term economic growthand productivity of those areas that levy a supplement, by permittinginvestment in projects (e.g. transport infrastructure) that supporteconomic growth, and which would not otherwise proceed.

In addition, the Bill seeks to provide flexibility for authorities to: decidethe duration of the supplement; reduce liability for the supplement forproperties above the £50,000 threshold; and to decide whether to offsetBusiness Improvement Districts levies against liability for thesupplement.


HM Treasury

Business rate supplements: A White Paper, October 9 2007