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Business Rate Supplements Bill

As I have just explained, we are not imposing a tax on business but putting in place a power through which local authorities can, with safeguards for local business, decide to introduce such a levy. We reckon that a supplementary business rate in London, which is likely to be where this is first put to the test, would raise perhaps £170 million a year. The right hon. Gentleman will know that that is an essential element of the funding package to support Crossrail. It will allow the Tory Mayor and the London assembly to discharge their commitments and responsibilities to contribute to that funding package precisely because it is a major economic project that could bring great benefit to businesses across London. Therein lies the principal case for such a power and for that power being available in other parts of the country.