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After much speculation, the government has this month published a white paper on the introduction of Supplementary Business Rates (SBRs) – a new mechanism to raise funds for all kinds of improvement and development projects across the UK. The paper has raised some questions from businesses currently part of Business Improvement Districts (BIDs) like WQBA, over the introduction of SBRs in addition to BID levy rates.
The good news:
- Businesses rated under £50,000 will be exempt from paying SBRs – therefore at the moment many businesses in Waterloo Quarter would not be affected
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SBRs will be capped at a maximum of 2% of rateable value and no higher
- The Authority (in London, this will be the Greater London Authority) will be obliged to undertake statutory consultation with local businesses and other stakeholders
- SBRs can only be used to fund additional economic development projects that are unable to be funded through other means
Area for concern:
- For businesses rated over £50,000 who would be eligible to pay, the Greater London Authority would have the power to decide on offsetting the BID levy against SBRs and questions have arisen over how this would be consulted on or work in practice
 British BIDs, a representative body for Business Improvement Districts across the UK, is making a formal response to the proposal outlining their concerns regarding the scheme. We will keep you informed of further developments.
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