William Eichler 13 June 2018

Council chiefs warn of business rates appeals ‘risk’

Local authority leaders have called on the Government to protect them against the financial risk of business rates appeals as new figures reveal over 100,000 cases remain unresolved.

New data from the Local Government Association (LGA) shows that over one million businesses have challenged their business rates bill since 2010 and 133,060 of these appeals are yet to be ruled on.

This creates a lot of ‘financial risk and uncertainty’, the LGA says.

While councils do not set business rates or rule on challenges by businesses making appeals, they are forced to set money aside as they have to fund half the cost of any backdated refunds.

The LGA today told the Government, ahead of a Westminster Hall Debate on business rates, that councils have had to divert £2.5bn away from frontline services in order to cover the unresolved appeals.

‘Ongoing delays in tackling business rate appeals from 2010 are heaping further financial uncertainty and pressure on our local services at a time when every penny counts to give councils the best chance of protecting services over the next few years,’ said Cllr John Fuller, vice chairman of the LGA’s Resources Board.

Acknowledging that it was right that businesses should be able to challenge their valuation, Cllr Fuller warned the unresolved appeals caused ‘uncertainty’ for councils.

‘Despite not setting business rates or ruling on appeals, councils are having to take billions of pounds away from already stretched local services, such as adult social care, protecting children and supporting businesses and boosting local growth, to cover the financial risk and uncertainty arising from this backlog of appeals. This is completely unfair,’ he said.

‘As we move towards a system where councils will keep more of the business rates they collect locally, communities need to be protected from the shifting of resources to address the risk of business rates appeals.

‘With local government in England facing an overall funding gap that will exceed £5bn by 2020, this money is needed to fund vital services and help plug growing funding gaps.’

SIGN UP
For your free daily news bulletin
Highways jobs

Private Sector Housing (Single Household) Team Leader

Royal Borough of Greenwich
PO5 - £52,194 to £55,323
The Royal Borough of Greenwich is seeking an experienced and motivated Single Household Team Leader Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich

DMC Manager

Royal Borough of Greenwich
PO6 - £54,267 to £57,402
Are you a dynamic leader with a passion for delivering exceptional building surveying services? Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich

Street Cleansing Team Leader

Royal Borough of Greenwich
£40,547 - £41,870
Help keep Royal Greenwich clean and green - kick start your career with a role in Street Services in the Royal Borough of Greenwich. Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich

Culture and Heritage A Level Intern

North East Lincolnshire Council
National Minimum Wage
Are you looking to gain hands on experience? North East Lincolnshire
Recuriter: North East Lincolnshire Council

Principal Environment Health Practitioner - Food and Safety

North East Lincolnshire Council
NJC39 - £50,269
Are you passionate about high‑quality regulatory services North East Lincolnshire
Recuriter: North East Lincolnshire Council
Linkedin Banner