Local Government Act 2003 (c. 26)

(The document as of February, 2008)

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(3) Amounts are to be debited to the BID Revenue Account only in accordance with BID arrangements.

(4) The Secretary of State may by regulations make further provision in relation to the BID Revenue Account.

48 Administration of BID levy etc

(1) The Secretary of State may by regulations make provision with respect to the imposition, administration, collection, recovery and application of BID levy.

(2) The provision which may be made by regulations under this section includes provision--

(a) corresponding to any provision which may be made by regulations under section 50 or 63 of, or Schedule 9 to, the Local Government Finance Act 1988 (c. 41) (joint owners or occupiers, death and administration of non-domestic rating);

(b) modifying or applying with modifications any provision made by regulations under any of those provisions.

(3) Nothing in subsection (2) is to be taken as limiting the power conferred by subsection (1).

Procedure

49 BID proposals

(1) BID arrangements are not to come into force unless proposals for the arrangements ("BID proposals") are approved by a ballot of the non-domestic ratepayers in the proposed business improvement district who are to be liable for the proposed BID levy.

(2) The Secretary of State may by regulations make provision--

(a) as to the persons who may draw up BID proposals,

(b) as to the procedures to be followed in connection with the drawing up of BID proposals,

(d) as to the date which may be provided under BID proposals for the coming into force of BID arrangements which give effect to the proposals.

50 Approval in ballot

(1) BID proposals are not to be regarded as approved by a ballot held for the purposes of section 49(1) unless two conditions are satisfied.

(2) The first condition is that a majority of the persons voting in the ballot have voted in favour of the BID proposals.

(3) The second condition is that A exceeds B.

(4) A is the aggregate of the rateable values of each hereditament in respect of which a person voting in the ballot has voted in favour of the BID proposals.

(5) B is the aggregate of the rateable values of each hereditament in respect of which a person voting in the ballot has voted against the BID proposals.

(6) For the purposes of subsections (4) and (5), the rateable value of a hereditament is that shown on the day of the ballot under section 42(4) of the Local Government Finance Act 1988 (c. 41).

51 Power of veto

(1) This section applies where BID proposals are approved by a ballot held for the purposes of section 49(1).

(2) The billing authority to which the proposals relate may, in prescribed circumstances, veto the proposals within such period from the date of the ballot as may be prescribed.

(3) In deciding whether to exercise the veto, a billing authority is to have regard to such matters as may be prescribed.

(4) If a billing authority vetoes BID proposals, it must give notice of the exercise of the veto to the persons entitled to vote in the ballot.

(5) The notice--

(a) must set out the reasons for the exercise of the veto, and

(b) must give details of the right of appeal under section 52.

(6) A copy of the notice must be sent to the Secretary of State.

52 Appeal against veto

(1) Where a billing authority vetoes BID proposals, any person who was entitled to vote in the ballot may appeal to the Secretary of State.

(2) The Secretary of State may by regulations make provision in relation to appeals under this section, including provision--

(a) as to the time by which an appeal is to be made,

(b) as to the manner in which an appeal is to be made,

(d) as to the matters to be taken into account in deciding whether to allow an appeal.

53 Commencement of BID arrangements

(1) This section applies where BID proposals are approved by a ballot held for the purposes of section 49(1).

(2) The billing authority concerned must ensure that BID arrangements which give effect to the proposals are made by the time the arrangements are to come into force in accordance with this section.

(3) Subject to subsection (4), the BID arrangements are to come into force on such day as may be provided under the BID proposals.

(4) If the BID proposals are vetoed under section 51, BID arrangements which give effect to the proposals are not to come into force unless the Secretary of State allows an appeal against the veto under section 52.

(5) Where the Secretary of State allows such an appeal, BID arrangements which give effect to the proposals are to come into force on such day as the Secretary of State may determine.

(6) The day determined under subsection (5) must not be earlier than the day mentioned in subsection (3).

(7) Before making a determination under subsection (5), the Secretary of State must consult--

(a) the billing authority concerned, and

(b) such persons as appear to him to be representative of the non-domestic ratepayers who are to be liable for the proposed BID levy.

Miscellaneous

54 Duration of BID arrangements etc

(1) BID arrangements are to have effect for such period (not exceeding 5 years) as may be specified in the arrangements.

(2) BID arrangements may be renewed for one or more periods each of which must not exceed 5 years, but only if the renewal of the arrangements on that or each occasion is approved by a ballot of the non-domestic ratepayers in the business improvement district who are liable for the BID levy.

(3) The renewal of BID arrangements is not to be regarded as approved by a ballot held for the purposes of subsection (2) unless the two conditions in section 50 which apply to the approval of BID proposals are satisfied in relation to the renewal of the arrangements.

(4) The Secretary of State may by regulations make provision--

(a) as to the alteration of BID arrangements, and

(b) as to the termination of BID arrangements.

(5) The provision which may be made by virtue of subsection (4)(a) or (b) includes provision preventing or restricting the alteration or early termination of BID arrangements.

(6) Nothing in subsection (5) is to be taken as limiting the power conferred by subsection (4).

(7) No regulations under subsection (4) shall be made by the Secretary of State unless a draft of the statutory instrument containing the regulations (whether containing them alone or with other provisions) has been laid before, and approved by a resolution of, each House of Parliament.

55 Regulations about ballots

(1) The Secretary of State may by regulations make provision in relation to ballots.

(2) The provision which may be made by regulations under this section includes provision--

(a) as to the timing of ballots;

(b) as to the non-domestic ratepayers entitled to vote in a ballot;

(d) as to the form that ballots may take;

(e) as to the persons who are to hold ballots;

(f) as to the conduct of ballots;

(g) conferring power on the Secretary of State to declare ballots void in cases of material irregularity;

(h) for or in connection with enabling a billing authority to recover the costs of a ballot from such persons and in such circumstances as may be prescribed.

(3) Nothing in subsection (2) is to be taken as limiting the power conferred by subsection (1).

(4) No regulations under subsection (1) which include provision of the kind mentioned in subsection (2)(b) shall be made by the Secretary of State unless a draft of the statutory instrument containing the regulations (whether containing them alone or with other provisions) has been laid before, and approved by a resolution of, each House of Parliament.

(5) In this section "ballot" means a ballot held for the purposes of section 49(1) or 54(2).

56 Power to make further provision

(1) The Secretary of State may by regulations make such supplementary, incidental, consequential or transitional provision as he considers necessary or expedient for the purposes of, in consequence of, or for giving full effect to, any provision made by or under this Part.

(2) The provision which may be made under subsection (1) includes provision amending any enactment (whenever passed or made).

(3) No regulations under subsection (1) which include provision amending an Act shall be made by the Secretary of State unless a draft of the statutory instrument containing the regulations (whether containing them alone or with other provisions) has been laid before, and approved by a resolution of, each House of Parliament.

57 Crown application

This Part binds the Crown.

58 Wales

(1) Sections 54(7), 55(4) and 56(3) do not apply in relation to Wales.

(2) In their application in relation to Wales--

(a) the remaining provisions of this Part have effect as if for each reference in those provisions to the Secretary of State there were substituted a reference to the National Assembly for Wales, and

(b) section 43(2)(b) has effect as if for the reference to a county council or parish council there were substituted a reference to a community council.

59 Interpretation of Part 4

(1) In this Part--

"BID arrangements" and "BID levy" have the meaning given by section 41;
"billing authority" means--
(a)
in relation to England, a district council, a unitary county council, a London borough council, the Common Council of the City of London or the Council of the Isles of Scilly; and
(b)
in relation to Wales, a county council or county borough council;
"business improvement district" has the meaning given by section 41;
"enactment" includes an enactment contained in a local or private Act or comprised in subordinate legislation (within the meaning of the Interpretation Act 1978 (c. 30));
"non-domestic ratepayer", in relation to any area, means a person subject to a non-domestic rate under section 43 or 45 of the Local Government Finance Act 1988 (c. 41) (liability to non-domestic rates) because he is the owner or occupier of a hereditament situated in that area;
"prescribed" means prescribed by regulations made by the Secretary of State;
"unitary county council" means a county council that is the council for a county in which there are no district councils.

(2) Other expressions which are used in this Part and in Part 3 of the Local Government Finance Act 1988 (non-domestic rates) have the same meaning in this Part as they have in that Part.

Part 5 Non-domestic rates

60 Submission of proposed rating lists

(1) In section 41(5) of the 1988 Act (proposed local non-domestic rating list to be sent to billing authority not later than 31 December preceding compilation date) for "31 December" there is substituted "30 September".

(2) In section 52(5) of that Act (proposed central non-domestic rating list to be sent to Secretary of State not later than 31 December preceding compilation date) for "31 December" there is substituted "30 September".

61 Small business relief

(1) Section 43 of the 1988 Act (occupied hereditaments: liability) is amended as follows.

(2) In subsection (4) (which, subject to subsections (5) and (6A), shows how the chargeable amount for a chargeable day is to be calculated) after "subsections" there is inserted "(4A),".

(3) After subsection (4) there is inserted--

" (4A) Where subsection (4B) below applies, the chargeable amount for a chargeable day shall be calculated--

(a) in relation to England, in accordance with the formula--

---

(b) in relation to Wales, in accordance with the formula--

---

(4B) This subsection applies--

(a) in relation to England, where--

(i) the rateable value of the hereditament shown in the local non-domestic rating list for the first day of the chargeable financial year is not more than any amount prescribed by the Secretary of State by order,

(ii) on the day concerned any conditions prescribed by the Secretary of State by order are satisfied, and

(iii) the ratepayer has made an application for the purposes of this subsection to the billing authority concerned by such date as may be prescribed by the Secretary of State by order,

(b) in relation to Wales, where--

(ii) on the day concerned any conditions prescribed by the National Assembly for Wales by order are satisfied.

(4C) An application under subsection (4B)(a)(iii) above shall be made in such form, and contain such information, as may be prescribed by the Secretary of State by order.

(4D) If the ratepayer--

(a) makes a statement in an application under subsection (4B)(a)(iii) above which he knows to be false in a material particular, or

(b) recklessly makes a statement in such an application which is false in a material particular,

he shall be liable on summary conviction to imprisonment for a term not exceeding 3 months or to a fine not exceeding level 3 on the standard scale or to both. "

(4) For subsection (8A) there is substituted--

" (8A) In relation to any hereditament in respect of which both subsections (4A) and (6A) above (but not subsection (5) above) have effect on the day concerned, the chargeable amount--

(a) in relation to England, shall be calculated in accordance with subsection (6A) above,

(b) in relation to Wales, shall be calculated in accordance with whichever of subsections (4A) and (6A) above produces the smaller amount.

(8B) In relation to any hereditament in respect of which--

(a) subsections (4A), (5) and (6A) above each have effect on the day concerned,

(b) subsections (4A) and (5) above both have effect on that day, or

the chargeable amount shall be calculated in accordance with subsection (5) above. "

(5) In section 44 of the 1988 Act (occupied hereditaments: supplementary) after subsection (6) there is inserted--

" (7) Subject to subsection (8) below, D is the small business non-domestic rating multiplier for the financial year.

(8) Where the billing authority is a special authority, D is the authority's small business non-domestic rating multiplier for the financial year.

(9) E is such amount as may be prescribed--

(a) in relation to England, by the Secretary of State by order,

(b) in relation to Wales, by the National Assembly for Wales by order. "

(6) In section 47 of the 1988 Act (discretionary relief), in subsection (1) after "subsection (3) below,", in the second place where it occurs, there is inserted "or the small business condition and the second condition mentioned in subsection (3) below,".

(7) After subsection (3C) of that section there is inserted--

" (3D) The small business condition is--

(a) that the hereditament is situated in Wales, and

(b) that on the chargeable day section 43(4B) above applies to the hereditament. "

62 Calculation of non-domestic rating multiplier

(1) Schedule 7 to the 1988 Act (non-domestic rating multipliers) is amended as follows.

(2) In paragraph 1 (Part 1 of Schedule 7 has effect to determine non-domestic rating multiplier) after "multiplier" there is inserted "and, in relation to England, the small business non-domestic rating multiplier".

(3) For paragraph 3 (calculation of non-domestic rating multiplier for years in which no list compiled) there is substituted--

" 3 (1) In relation to England, the small business non-domestic rating multiplier for a chargeable financial year shall be calculated in accordance with this paragraph if the year is not one at the beginning of which new lists must be compiled.

(2) An amount shall be found in accordance with the formula--

---

(3) Subject to sub-paragraph (5) below, that amount may be adjusted by the Secretary of State to reflect the extent to which his last estimate of the total mentioned in paragraph 5(6) or (7) below appears to him to differ from the actual total.

(4) The amount under sub-paragraph (2) above or, if an adjustment is made under sub-paragraph (3) above, the adjusted amount shall be the small business non-domestic rating multiplier for the year.

(5) No adjustment may be made under sub-paragraph (3) above for a chargeable financial year beginning before 2006.

3A (1) In relation to England, the non-domestic rating multiplier for a chargeable financial year shall be calculated in accordance with this paragraph if the year is not one at the beginning of which new lists must be compiled.

(2) The non-domestic rating multiplier for the year shall be the amount found by--

(a) increasing the small business non-domestic rating multiplier for the year under paragraph 3 above to reflect the Secretary of State's estimate of the difference between--

(i) the aggregate amount which will be payable to him and all billing authorities by way of non-domestic rates as regards the year, and

(ii) the aggregate amount which would be so payable if section 43(4A) to (4D) above were omitted, and

(b) if the Secretary of State thinks fit, adjusting the amount found under paragraph (a) above to reflect the extent (if any) to which his estimate of the difference mentioned in that paragraph for an earlier financial year appears to him to differ from the actual difference for that earlier year.

3B (1) In relation to Wales, the non-domestic rating multiplier for a chargeable financial year shall be calculated in accordance with this paragraph if the year is not one at the beginning of which new lists must be compiled.

(2) An amount shall be found in accordance with the formula--

---

(3) Subject to sub-paragraph (5) below, that amount may be adjusted by the National Assembly for Wales to reflect the extent to which its last estimate of the total mentioned in paragraph 5(6) or (7) below appears to it to differ from the actual total.

(4) The amount under sub-paragraph (2) above or, if an adjustment is made under sub-paragraph (3) above, the adjusted amount shall be the non-domestic rating multiplier for the year.

(5) No adjustment may be made under sub-paragraph (3) above for a chargeable financial year beginning before 2006. "

(4) For paragraph 4 (calculation of non-domestic rating multiplier for year in which list must be compiled) there is substituted--

" 4 In relation to England, the small business non-domestic rating multiplier for a chargeable financial year shall be calculated in accordance with the following formula if the year is one at the beginning of which new lists must be compiled--

---

4A (1) In relation to England, the non-domestic rating multiplier for a chargeable financial year shall be calculated in accordance with this paragraph if the year is one at the beginning of which new lists must be compiled.

(2) The non-domestic rating multiplier for the year shall be the amount found by--

(a) increasing the small business non-domestic rating multiplier for the year under paragraph 4 above to reflect the Secretary of State's estimate of the difference between--

(i) the aggregate amount which will be payable to him and all billing authorities by way of non-domestic rates as regards the year, and

(ii) the aggregate amount which would be so payable if section 43(4A) to (4D) above were omitted, and

4B In relation to Wales, the non-domestic rating multiplier for a chargeable financial year shall be calculated in accordance with the following formula if the year is one at the beginning of which new lists must be compiled --

---

(5) In paragraph 5(1) for "3 and 4" there is substituted "3 to 4B".

(6) For sub-paragraph (2) of that paragraph (which defines A) there is substituted--

" (2) In relation to England, A is the small business non-domestic rating multiplier for the financial year preceding the year concerned (or, if there is no such multiplier for that year, A is the non-domestic rating multiplier for that year).

(2A) In relation to Wales, A is the non-domestic rating multiplier for the financial year preceding the year concerned. "

(7) For sub-paragraphs (6) and (7) of that paragraph (which define D and E) there is substituted--

" (6) D is the number of whole pounds in the Secretary of State's or, as the case may be, the National Assembly for Wales' estimate of the total of the appropriate rateable values of all appropriate hereditaments, where--

(a) appropriate rateable values are those which will be shown in lists for the last day of the financial year preceding the year concerned once all alterations to those lists have been made;

(b) appropriate hereditaments are those which will be shown in lists for that day once all alterations to those lists have been made.

(7) E is the number of whole pounds in the Secretary of State's or, as the case may be, the National Assembly for Wales' estimate of the total of the appropriate rateable values of all appropriate hereditaments, where--

(a) appropriate rateable values are those which will be shown in lists for the first day of the financial year concerned once all alterations to those lists have been made;

(b) appropriate hereditaments are those which will be shown in lists for that first day once all alterations to those lists have been made.

(7A) The reference in sub-paragraph (7)(a) above to rateable values which will be shown in lists for the first day of the financial year concerned once all alterations to those lists have been made includes a reference to rateable values which will be shown in lists for a later day as a result of any alterations of the lists because of the inaccuracy of the lists for that first day. "

(8) For paragraph 6(1) there is substituted--

" (1) In relation to England, the Secretary of State shall calculate the small business non-domestic rating multiplier and the non-domestic rating multiplier for a chargeable financial year and, as soon as is reasonably practicable after doing so, shall serve on each billing authority a notice stating the multipliers as so calculated.

(1A) In relation to Wales, the National Assembly for Wales shall calculate the non-domestic rating multiplier for a chargeable financial year and, as soon as is reasonably practicable after doing so, shall serve on each billing authority a notice stating the multiplier as so calculated.

(1B) The notice must show how any calculation has been made and contain details of any estimates or adjustments that have been made. "

(9) For paragraph 6(3) there is substituted--

" (3) Where the financial year is one at the beginning of which new lists must be compiled, the notice must specify the date determined under paragraph 5(10) above for the purpose of making estimates under paragraph 5(6) and (7) above. "

(10) In paragraph 6(4) and (5) for "sub-paragraph (1) above" there is substituted "this paragraph".

(11) After paragraph 9 (special authority's non-domestic rating multiplier) there is inserted--

" 9A (1) A special authority's small business non-domestic rating multiplier for a chargeable financial year shall be set by it in accordance with the formula--

---

(2) In sub-paragraph (1) above--

(a) A is the special authority's non-domestic rating multiplier for the year under paragraph 9 above,

(b) B is the small business non-domestic rating multiplier for the year determined in accordance with Part 1 of this Schedule, and

(c) C is the non-domestic rating multiplier for the year, so far as relating to England, determined in accordance with that Part.

(3) The multiplier must be expressed as a figure in which a part of a whole (if any) is expressed to three decimal points only. "

63 Rural settlement lists etc

(1) In section 42A of the 1988 Act (rural settlement list) in subsection (1) (duty of each billing authority to compile and maintain rural settlement list) after "billing authority" there is inserted "in England".

(2) In section 43 of the 1988 Act (occupied hereditament: liability) in subsection (6B) (conditions for relief under subsection (6A)) before paragraph (a) there is inserted--

" (aa) the hereditament is situated in England, " .

(3) In section 47 of the 1988 Act (discretionary relief) in subsection (3A) (the rural settlement condition) before paragraph (a) there is inserted--

" (aa) that the hereditament is situated in England, " .

64 Relief for registered community amateur sports clubs

(1) In section 43 of the 1988 Act (occupied hereditaments: liability), in subsection (6) (calculation of chargeable amount where ratepayer is a charity and hereditament is occupied for charitable purposes)--

(a) the words after "on the day concerned" become paragraph (a) of that subsection, and

(b) after that paragraph there is inserted " , or

(b) the ratepayer is a registered club for the purposes of Schedule 18 to the Finance Act 2002 (community amateur sports clubs) and the hereditament is wholly or mainly used--

(i) for the purposes of that club, or

(ii) for the purposes of that club and of other such registered clubs. "

(2) In section 45 of the 1988 Act (unoccupied hereditaments: liability), in subsection (6) (calculation of chargeable amount where ratepayer is a charity and hereditament will next be used for charitable purposes)--

(a) the words after "on the day concerned" become paragraph (a) of that subsection, and

(b) after that paragraph there is inserted " , or

(b) the ratepayer is a registered club for the purposes of Schedule 18 to the Finance Act 2002 (community amateur sports clubs) and it appears that when the hereditament is next in use--

(i) it will be wholly or mainly used for the purposes of that club, and that club will be such a registered club, or

(ii) it will be wholly or mainly used for the purposes of two or more clubs including that club, and each of those clubs will be such a registered club. "

(3) In section 47(2) of the 1988 Act (first condition for discretionary relief), after paragraph (b) there is inserted--

" (ba) the ratepayer is a registered club for the purposes of Schedule 18 to the Finance Act 2002 (community amateur sports clubs), and the hereditament is not an excepted hereditament and is wholly or mainly used--

(i) for the purposes of that club, or

(ii) for the purposes of that club and of other such registered clubs; " .

(4) In section 48 of the 1988 Act (discretionary relief: supplementary), after subsection (2) there is inserted--

" (2A) A hereditament not in use shall be treated as wholly or mainly used for the purposes of a club that is a registered club for the purposes of Schedule 18 to the Finance Act 2002 (community amateur sports clubs) if it appears that when next in use it will be wholly or mainly used for the purposes of a club that is then, or two or more clubs each of which is then, such a registered club. "

(5) In section 67 of the 1988 Act (interpretation of Part 3 of that Act), after subsection (10) there is inserted--

" (10A) The times at which a club is a registered club for the purposes of Schedule 18 to the Finance Act 2002 (community amateur sports clubs)--

(a) shall, where it is registered with retrospective effect, be taken to have included those within the period beginning with the date with effect from which it is registered and ending with its registration; but

(b) shall, where its registration is terminated with retrospective effect, be taken not to have included those within the period beginning with the date with effect from which its registration is terminated and ending with the termination of its registration. "

65 Transitional relief

(1) After section 57 of the 1988 Act (special provision for 1990-1995) there is inserted--

" 57A Transitional provision for 2005 onwards: England

(1) In relation to any relevant period the Secretary of State must make regulations under this section which apply in relation to England.

(2) The regulations may contain such provisions as are mentioned in subsection (3) below in relation to any case where--

(a) as regards a hereditament or hereditaments the chargeable amount for a chargeable day falls to be determined under section 43, 45 or 54 above, and

(b) the day falls within a prescribed relevant financial year.

(3) The provisions are that--

(a) the chargeable amount shall be such as is found in accordance with prescribed rules, and

(b) sections 43(4) to (6E) and 44 above, sections 45(4) to (6) and 46 above, or section 54(4) to (7) above (as the case may be) shall not apply.

(4) A chargeable amount found in accordance with rules prescribed under this section, and any calculation (or component of a calculation) used to find that amount, may be the same as or different from what it would be apart from the regulations.

(5) Rules prescribed under this section may be framed by reference to such factors as the Secretary of State thinks fit.

(6) Without prejudice to section 143(1) below, regulations under this section relating to a relevant period may contain different provisions for different relevant financial years.

(7) Without prejudice to section 143(1) below, regulations under this section may contain different provision in relation to locally listed hereditaments whose rateable value exceeds, and those whose rateable value does not exceed, a prescribed figure; and a locally listed hereditament is a hereditament for the time being shown in a local non-domestic rating list.

(8) Without prejudice to section 143(1) and (2) below, regulations under this section may include provision--

(a) imposing duties and conferring powers on valuation officers (whether as regards determinations, certificates or otherwise) in relation to the ascertainment of rateable values;

(b) as to appeals relating to things done or not done by such officers.

(9) Regulations under this section in their application to a particular relevant financial year shall not be effective unless they come into force before 1 January immediately preceding the year; but this is without prejudice to the power to amend or revoke.

(10) In making regulations under this section the Secretary of State shall have regard to the object of securing (so far as practicable) that the aggregate amount payable to him and all billing authorities by way of non-domestic rates as regards a particular relevant period is, after disregarding any adjustments made to take account of amounts being payable at times other than those at which they would have been payable apart from the regulations, the same as the aggregate amount which would be so payable apart from the regulations.

(11) For the purposes of subsection (10) above, the Secretary of State may rely on his estimate of the aggregate amounts and adjustments mentioned in that subsection.

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