Clause 47 - BID levy
Local Government Bill
8:55 am
Mr Christopher Leslie (Parliamentary Secretary, Cabinet Office; Shipley, Labour)
Clause 47 states that the BID levy can be raised on ratepayers only while the BID arrangements are in force in that area. It also states that the duration of the BID, and therefore the period of time for which ratepayers will have to pay the additional levy, will be specified in the BID arrangements. However, to answer the point made by the hon. Member for New Forest, West, a related provision in clause 52 states that BID arrangements cannot remain in force for more than five years unless their renewal is approved in a fresh ballot of ratepayers. I hope that the debate on clause 52 will clarify those matters.
Subsection 47(3) provides that the BID levy will be calculated according to any method set out in individual BID arrangements. It is therefore not limited to being calculated on the basis of rateable value. It could be a flat rate levied on all properties, whatever their rateable values. However, from discussions with business organisations and rating professionals, we have concluded that the easiest and most popular way of calculating the levy is likely to be as a percentage of the rateable value of individual properties. Special provision may be needed to allow for the fact that charities or other non-profit-making bodies are less able to pay for the BID than profit-making bodies.
Advice on calculating the BID levy will be available in the guidance on BIDs that accompanies the Bill.