Business Rate Supplements - who's next after Crossrail?

The Lyons Inquiry into local government in March 2007 recommended the introduction of a power for local authorities to levy a business rate supplement.

The Government responded with a White Paper in October 2007. The Business Rate Supplements Act 2009 received the Royal Assent in July and most of its provisions are now in force. Any supplement may not exceed 2p and ratepayers with properties with a rateable value of £50,000 or more are affected.

Local government has long campaigned to reverse the nationalisation of the business rate which was part of the local government finance reforms which introduced the now unlamented poll tax. The new supplement is a long way from localisation but local government must be grateful for small mercies. And business ratepayers will hope that local authorities keep this new fiscal power firmly under lock and key in the current economic downturn.

Read Wragge & Co's in-depth analysis for more detail.