Councils in England could save £250m annually if a legal loophole that enables landlords to avoid business rates was closed, according to the campaign Ban Box Shifting.
The practise of ‘box shifting’ involves landlords placing boxes in vacant commercial properties for six weeks in order to trigger an empty property relief period of three or six months.
At the end of the rates-free period, boxes are put back in the space for another six weeks and the cycle continues, the campaign group has said.
In response to a consultation on business rates avoidance and evasion, campaigners have called for the Government to replicate recent Welsh legislation that increased the period of ‘occupation’ that activates business rates exemption from six weeks to six months.
Shaylesh Patel said he launched the Ban Box Shifting campaign to ‘call for a fair system that regenerates our high streets and puts money back in the pockets of councils and local communities’.
Ealing Council cabinet member for decent living incomes Cllr Bassam Mahfouz said: ‘Stamping down on unethical business rates avoidance is a necessary step for councils across the country in urgent need of financing critical services.
‘By supporting this campaign, we are taking a stand against business rates avoidance and working towards a more sustainable and ethical system that benefits our local communities, charities, and businesses.’
