The Business Rate Supplements Act 2009 enables levying
authorities – county councils, unitary district councils and, in
London, the Greater London Authority - to levy a supplement on the
business rate to support additional projects aimed at economic
development of the area.
Business Rate Supplements (BRS) are not applicable to properties
with a rateable value of £50,000 or below, and authorities have
discretion to increase that threshold. The total maximum BRS which
may be levied by a levying authority is 2p per pound of rateable
value. Levying authorities have the power to apply such reliefs to
the BRS as they think appropriate and in such cases must include an
explanation of the rules for the application of those reliefs in
the final prospectus for the BRS.
Crossrail Business Rate Supplement
The Greater London Authority (GLA) introduced a business rate
supplement (BRS) on 1 April 2010 to finance £4.1 billion of the
costs of the £14.5 billion Crossrail project.
What is Crossrail and how will it benefit your business?
Crossrail will connect the outer suburbs and
Heathrow to the West End, City and Canary Wharf. It is pivotal to
the future of London’s economy and the increased earnings – from
new jobs and quicker journeys – will benefit businesses across
It is the single largest investment in London’s
infrastructure for decades, employing up to 14,000 people at the
peak of construction. Crossrail services are due to commence
on the Shenfield to Liverpool Street section in 2017 and through
central London in 2018 followed by a phased introduction
of services on the rest of the route.
Find out more at http://www.crossrail.co.uk/, by
calling the Crossrail 24 hr Helpdesk on 0345 602 3813 or visiting
Crossrail’s Visitor Information Centres at Whitechapel and
Tottenham Court Road.
Developments in the construction and financing
The Mayor of London agreed a settlement with
the Government in October 2010 for the Crossrail route and secured
investment for the upgrade of the Tube. Crossrail is now under
construction at key sites across London.
In April 2012 the Mayor introduced a community
infrastucture planning (CIL) levy on new developments in London to
finance Crossrail. This is paid for by the developer. Find at more
How will London’s businesses help to fund Crossrail?
The Crossrail BRS will be used to finance
£3.5 billion worth of GLA borrowing and the repayment of this
sum after Crossrail is completed. A further £0.6 billion of
BRS revenues will be used to finance the construction works
directly. The GLA will have contributed nearly £3.5 billion by
March 2014 towards the project using revenues financed by the BRS.
It expects the Crossrail BRS will run for a period of between 24
and 31 years until its borrowing is repaid. A further contribution
of £530 million is forecast for 2014-15.
Does my business have to pay the Crossrail BRS?
Your rates bill makes clear if you are liable
to pay the BRS. The Crossrail BRS is applied only to assessments
(e.g. business and other non domestic premises) on the local rating
lists of the 32 London boroughs and City of London Corporation with
a rateable value of more than £55,000. Over 80 per cent of non
domestic properties in London are therefore exempt.
How much do I pay if my property's rateable value is above
The Crossrail BRS multiplier for 2014-15 is 2p
per pound of rateable value. Reliefs for the Crossrail BRS will
apply on the same basis and at the same percentage rate as for your
National Non Domestic Rates (NNDR) bill, although no transitional
relief is provided for the BRS.
Keeping you up to date
We will continue to provide an annual update for ratepayers over
the lifetime of the BRS.
Contact for further information
Greater London Authority, Finance Division,
6th Floor, City Hall, The Queen’s Walk
London SE1 2AA
Tel: 020 7983 4100