In April 2010, the Mayor introduced a two pence (2p) business rates supplement on larger non-domestic properties in London. Since April 2017, this has only applied to business premises with a rateable value of over £70,000 in London. This is helping to pay for Crossrail, a vital new east-west train link that will provide a major boost to London's economy.
Paying for Crossrail: business rate supplement
How Crossrail is paid for
The Greater London Authority (GLA) is expected to contribute a total of around £6.6 billion towards the Crossrail project using income generated from a business rates supplement (BRS) and developer contributions paid through the Mayor's Community Infrastructure Levy (MCIL). Further details on the MCIL are available at Mayoral Community Infrastructure Levy.
Powers were granted to the GLA to introduce this under the 2009 Business Rates Supplements Act.
The policies for the Crossrail BRS are set out in the final prospectus. Since April 2017, the Crossrail BRS has only applied to properties on the local rating list in London with a rateable value above £70,000 to reflect the impact of the 2017 revaluation of non-domestic properties as explained below.
Only around 15 per cent of London’s business and other non-domestic premises are currently liable to pay the Crossrail BRS. Under the BRS a ratepayer for a property (or rating assessment) with a rateable value of £100,000 is liable for an annual BRS contribution of £2,000 (that is, £100,000 x the 2p in the pound BRS multiplier).
Reliefs for the BRS (such as registered charities) apply on the same basis and at the same rate as for National Non-Domestic Rates (NNDR).
The Crossrail BRS is collected on behalf of the GLA by the 32 London boroughs and the City of London Corporation, on the same bills as general business rates (NNDR).
Enquiries relating to the payment of your bill should be referred to your billing authority. Their contact details will be set out on your rates bill.
General enquiries about the BRS can be made by email to [email protected] or by calling 020 7983 4100.
BRS Policies for 2019-20
On 1 April 2017 new rateable values were introduced for all non-domestic properties in England for business rates. These valuations determine the sums ratepayers will pay in relation to the Crossrail BRS. Ratepayers can check the valuations for their property.
The Mayor reviewed the policies for the BRS following the revaluation and decided to increase the qualifying rateable value threshold from 1 April 2017 to £70,000 (compared to the previous figure of £55,000) having regard to the variation powers set out in the final prospectus.
This means only assessments with a rateable value of £70,001 or higher will be liable for the BRS in 2019-20. It is anticipated that this revised threshold will be maintained for the duration of the 2017 rating list. The next revaluation is expected in April 2021.
A revised funding package for Crossrail was published in December 2018 following the announcement of the delay in the project opening date in August 2018. The target end date for the Crossrail BRS is 2037-38 and the sum expected to be collected from ratepayers is below £8.1 billion in line with the assumptions set out in the final prospectus.
The BRS multiplier will remain unchanged in 2019-20 at 2p. The policies for the BRS for 2019-20 were approved on 21 February 2019 by the Mayor in Mayoral Decision MD2430.
Crossrail Business Rate Supplement documents
The final prospectus was published on 29 January 2010:
The GLA's communication to non-domestic ratepayers in respect of the Crossrail BRS for 2019-20 is available below. In most cases this will be issued to ratepayers alongside their rates bills, or made available on the websites of their local billing authority:
The GLA published its initial proposals in July 2009. It invited comments on the proposals by 22 October 2009 and took these into account in developing the final proposals: