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Under section 32 of the Business Rate Supplements Act 2009 (“the Act”), that section and sections 28 to 31 of the Act came into force on the day on which it was passed: 2nd July 2009. With the exception of section 16(2) and Schedule 2, this Order brings the remaining provisions of the Act into force on 19th August 2009.
In England, the Act provides county councils, district councils in areas where there is no county council, and, in London, the Greater London Authority (“levying authorities”) with the power to levy a supplement on the national business rate with effect from 1st April 2010.
The Act requires levying authorities wishing to launch a business rate supplement (“BRS”) to consult on proposals set out in a prospectus and to hold ballots where revenue from the BRS will amount to more than one third of the total cost of the project to be funded. It sets a national limit for BRS of 2p per pound of rateable value and enables the Secretary of State to prescribe, by regulations, a rateable value threshold for triggering liability for BRS. The Act enables levying authorities to offset Business Improvement District (“BID”) levies under the Local Government Act 2003 (c. 26) against liability for BRS and to grant relief from BRS liability. It makes provision for the calculation of liability, collection and enforcement and in relation to accounting for BRS revenues, sets out the circumstances in which a BRS may be varied and contains a power for the Secretary of State to cancel a BRS.
Section 16(5) and Schedule 2, which are not commenced by this Order, make provision for a new type of BID – a BRS-BID – to be funded by a BRS-BID levy.
An impact assessment has not been produced for this instrument as no impact on the private or voluntary sectors is foreseen.
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