Business rate income

Questions to the Mayor of London – answered on 18th July 2019.

Alert me about debates like this

Photo of Shaun Bailey Shaun Bailey Conservative

For each of the financial years from 2010/11 to the current year, please provide a breakdown of business rate income and to where in the GLA family it was distributed to?

Further to this, please can you provide and an estimated breakdown of business rate income over the next three financial years and where it’s allocated to by distributed to?

Photo of Sadiq Khan Sadiq Khan Mayor of London

Table 1 sets out the £11.25 billion of retained business rates income the Mayor has applied across the GLA group from 2013-14 to 2019-20. This includes related funding in section 31 grants for Government funded business rates relief schemes.

Table 2 sets out the provisional business rates allocations totalling £6.8 billion planned across the GLA group for the next three financial years - 2020-21 to 2022-23. These allocations will be subject to review once the Government’s intentions on the multi-year spending review, review of needs and distribution, business rates reset and reforms to the business rates retention system are clearer.

Table 3 summarises the £2.9 billion of the GLA’s share of business rates income paid by the Mayor to central government in tariff payments and through the levy on growth under the business rates retention system since 2013-14. This income is redistributed by the Government to support local services elsewhere in England.

Table 4 summarises the £2.1 billion of income which has been received to date through the Mayor’s Crossrail Business Rate Supplement since this was introduced in 2010-11. A total of £3.2 billion is expected to have been received by the end of 2022-23. This income is ring fenced and has been applied both to fund direct Crossrail construction costs and finance and repay the GLA’s associated borrowing.

Table 1: Retained Business rates allocations to GLA and Functional Bodies by Mayor from 2013-14 to 2019-20

Business rates allocations

Outturn

Approved

TOTAL

2013-14

2014-15

2015-16

2016-17

2017-18

2018-19

2019-20

£m

£m

£m

£m

£m

£m

£m

£m

GLA (Mayor)

29.8

47.7

42.6

70.5

85.9

187.9

63.3

527.7

Group Items

0.2

0.6

2.8

5.3

3.5

12.4

Strategic Investment Fund

111.9

60.7

172.6

GLA (Assembly)

2.0

2.1

2.1

2.1

4.8

5.2

5.2

23.5

MOPAC

29.6

92.5

220.0

342.1

LFEPA/LFC

108.9

112.2

114.0

115.7

244.2

250.4

233.2

1,178.6

TfL

802.8

828.5

772.5

854.6

1,814.3

1,923.1

1,907.3

8,903.1

LLDC

32.2

15.2

20.7

68.1

OPDC

2.2

5.1

9.5

16.8

Total

943.5

990.4

931.4

1,043.4

2,215.9

2,596.6

2,523.4

11,244.6

Notes to Table 1

Table 2: Indicative retained business rates allocations to GLA and Functional bodies for 2020-21 to 2022-23

Business rates allocations

Plan

Plan

Plan

TOTAL

2020-21

2021-22

2022-23

£m

£m

£m

£m

GLA (Mayor)

61.5

70.9

69.5

201.9

Group Items

3.9

3.9

3.9

11.7

GLA (Assembly)

5.4

5.5

5.6

16.5

MOPAC

32.5

32.7

92.2

157.4

LFC

232.1

232.1

232.1

696.3

TfL

1,864.3

1,884.5

1,905.1

5,653.9

LLDC

16.0

16.0

16.0

48.0

OPDC

9.6

9.6

9.7

28.9

Total

2,225.3

2,255.2

2,334.1

6,814.6

Table 3 Tariff and Levy Payments made to Central Government (MHCLG) under retention system from GLA business rates revenues

Tariff & levy payments to MHCLG

Outturn

Total

2013-14

2014-15

2015-16

2016-17

2017-18

2018-19

£m

£m

£m

£m

£m

£m

£m

Tariff payment

342.3

349.0

355.7

358.6

715.3

766.2

2,887.1

Levy on growth

13.3

35.5

48.8

Total

342.3

349.0

355.7

358.6

728.6

801.7

2,935.9

Table 4: Crossrail Business Rate Supplement Revenues From 2010-11 to 2018-19 and Forecast income up to 2021-22

£m

2010-11

224.0

2011-12

231.7

2012-13

224.8

2013-14

220.4

2014-15

218.8

2015-16

217.5

2016-17

223.4

2017-18

272.8

2018-19

267.7

Subtotal to 31 March 2019

2,101.1

2019-20 (Forecast)

275.4

2020-21 (Estimate)

255.0

2021-22 (Estimate)

255.0

2022-23 (Estimate)

255.0

Total forecast

3,141.5

Note