Consultations and Proposals

A significant number of consultations and studies of interest to businesses were commissioned to coincide with the Pre-Budget Report.

Supplementary Business Rates

Alongside the Pre-Budget Report and Comprehensive Spending Review, the Government has published a White Paper relating to business rate supplements. The document announces 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 proposal, which builds on the review of sub-national economic development and regeneration, is being promoted as a substantial devolution of power to local communities, allowing them to make investment decisions that more closely reflect local economic need.

The announcement follows extensive public debate on reform to business rates in England and the recommendations of the Lyons Inquiry into local government.

The Government's proposed model for business rate supplements involves four levels of protection for business:

• Revenue from supplements will only be available for spending on economic development in addition to existing plans. Proposals will be subject to detailed statutory consultation.
• A national upper limit of 2p in the pound will be set on the level on supplements that can be levied.
• To protect smaller businesses from disproportionate burdens, properties liable for business rates with a rateable value of £50,000 or less will be exempted from paying supplements.
• Where the supplement will support more than a third of the total cost of the project there will be a full 'double-lock' vote of businesses affected.

By April 2010, the Government will legislate to enable local authorities to levy the first supplements.

The PDF document is available here:

http://www.hm-treasury.gov.uk/media/B/9/pbr_csr07_businessrate266.pdf