The purpose of the Bill is to: give upper tier local authorities (County Councils, Unitary Authorities and, in London, the Greater London Authority) the power to levy a local supplement on the business rate and retain the proceeds for economic development.
The main elements of the Bill are:
. Creating a new power for upper tier local authorities to levy a local supplement on the business rate and to retain the proceeds for investment in that area;
. Providing safeguards for business, including: a requirement that proceeds should be spent on economic development; consultation and, in certain circumstances, a ballot of businesses that would be affected, a national upper limit to the levy of 2p per £1 of rateable value; an exemption for all properties with a rateable value of £50,000 or less;
. Flexibility for authorities to: decide the duration of the supplement; reduce liability for the supplement for properties above the £50,000 threshold; and to decide whether to offset Business Improvement Districts levies against liability for the supplement.
The main benefits of the Bill are:
. Promoting the long-term economic growth and productivity of those areas that levy a supplement, by permitting investment in projects (e.g. transport infrastructure) that support economic growth, and which would not otherwise proceed.
