Public Houses: Business Rates
The question
To ask the Secretary of State for Housing, Communities and Local Government, whether a local billing authority will be centrally reimbursed by his department if they apply the 15% business rate pub relief to a pub’s Business Improvement District business rate levy, where the pub hereditament is liable for such a locally-led levy.
Answered by Alison McGovern
Business Improvement District (BID) levies are established under separate legislation from the business rates system and are payable in addition to non-domestic rates.
Business rates reliefs granted under section 47 of the Local Government Finance Act 1988, such as the Pubs and Live Music Venues Relief, apply only to a ratepayer’s liability for non-domestic rates and do not apply to BID levies. These reliefs therefore reduce a ratepayer’s liability to non-domestic rates only. Individual BIDs may allow for a reduction in a levy in line with their own schemes but this is a matter for individual BIDs to determine.
Where a billing authority grants discretionary business rates reliefs (including reliefs under section 47 of the 1988 Act), the authority is compensated for the resulting loss of non-domestic rates income via grant paid under section 31 of the Local Government Act 2003. This compensation relates solely to reductions in non-domestic rates liability and does not extend to BID levies. Accordingly, there is no provision for central reimbursement in respect of BID levy amounts.
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