Business Rate Supplements

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 £15.9 billion Crossrail project. Details on the progress of the project so far and the proposed policies for the BRS in the 2011-12 financial year are set out below.

What is Crossrail and how will it benefit London’s economy?

Crossrail will provide a new modern railway across London connecting the outer suburbs and Heathrow to the West End, the City and Canary Wharf. It is key to the future growth of London’s economy and the increased earnings - from new employment opportunities and transport time savings - will benefit businesses right across London. It will be by far the largest single investment in London’s infrastructure for a generation or more employing up to 14,000 people at the peak of construction.

Crossrail Ltd is committed to engaging regularly with local communities and business sectors to ensure that business’ voice is heard. As part of Crossrail’s approach to responsible procurement it will be using CompeteFor to ensure that Small and Medium Sized Enterprises (SMEs) are also included in the tendering process.

Further information on Crossrail can be found at www.crossrail.co.uk, by calling the Crossrail 24-hour Helpdesk on 0345 602 3813 or by visiting Crossrail’s Visitor Information Centres at 16-18 St Giles High Street London WC2H 8LN and the Idea Store, 321 Whitechapel Road, London E1 1BU.

Developments in the last 12 months

The Mayor of London agreed a funding settlement with the Government in October 2010 which will allow Crossrail to be built on its agreed route and secure investment for the upgrade of the Tube. Crossrail is now under construction at all its central station sites across London and the first contracts have been awarded to enable the tunnelling works to begin in 2011.

How will London’s businesses help to fund Crossrail?

The Crossrail BRS will be used to finance £3.5 billion worth of borrowing by the GLA and the repayment of this sum after the end of the Crossrail construction works. £800 million of this was borrowed by the GLA in 2010-11 with a further £700 million scheduled to be drawn down in 2011-12. A further £600 million will be applied to fund the Crossrail construction and financing costs. The GLA has already paid over £1 billion towards the project using revenues financed by the BRS. The GLA expects the Crossrail BRS will run for a period of between 24 and 31 years until its borrowing is repaid.

Does my business or organisation have to pay the Crossrail 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 the City of London Corporation which have a rateable value of more than £55,000. Over 80 per cent of non domestic properties in London will therefore be exempt from the BRS as their rateable value is below this threshold. Your rates bill makes clear if you are liable to pay the BRS.

How much do I pay if my property’s rateable value is above £55,000?

The Crossrail BRS multiplier for 2011-12 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 informed

We will provide updates on the Crossrail BRS over its lifetime with your annual rates bills. Further information on the Crossrail BRS can be obtained by contacting the GLA or viewing our website:

Finance Division, Greater London Authority
6th Floor, City Hall, The Queen’s Walk
London SE1 2AA
Tel: 020 7983 4100
Email: crossrail-brs@london.gov.uk
www.london.gov.uk/crossrail-brs

This business rate supplement is being levied by the Greater London Authority in relation to the Crossrail project. Further information may be found in the BRS project prospectus at www.london.gov.uk/crossrail-brs.