By Andrew Kilpatrick BSc FRICS ACIArb IRRV, Partner of Thompsons

Slipped in amongst other proposals in the Government's draft legislative programme announced at the end of May was a new power for local authorities to be able to raise revenues from businesses by levying a new business rates supplement on local businesses, based on existing rateable values. The new supplementary business rates will be in addition to other rates levies which may exist, such as for Business Improvement Districts and local authorities will be allowed by central Government to retain the proceeds for “economic development”. Central Government suggest that could include transport infrastructure improvements which might not otherwise be funded. Whilst little consultation has yet occurred and few details are yet available, the intention is to bring in the new legislation in Autumn 2008. This proposal has, I suggest, all the hallmarks of another “Brown” stealth tax on the property sector, still stinging from the extra costs of the drastic changes to empty property rates relief, which is continuing to impose an extra rates burden on the property sector and businesses.

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