The Business Rate Supplement Bill received Royal Assent on the 2nd July, giving unitary authorities, county councils, and the Greater London Authority the ability to levy a local supplement on the business rate for investment in that area.
The levy can be up to a maximum of 2p on £1 of rateable value to be allocated to specific economic development projects. A Brighton & Hove levy of 2p could raise over £3m and a national levy could raise £830m but it would apply only to businesses with a rateable value in excess of £50,000.
In all cases where the BRS contribution to the project is in excess of one-third, businesses must approve the levy in a ballot – with the explicit exemption of the proposed London Crossrail levy (although it is not expected that the BRS levy will make up more than one third of the Crossrail budget).
The bill will come into effect in April 2010. It is not know whether Brighton & Hove Unitary authority have any plans to implement BRS in the city.
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