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

Finance Assistant - Banking, Controls & Reconciliation

Essex County Council
Up to £25081.00 per annum
Finance Assistant - Banking, Controls & Reconciliation Fixed Term, Full Time£25,081 per annumLocation
Recuriter: Essex County Council

Park Operations Assistant

Essex County Council
Up to £25959.00 per annum
Park Operations AssistantPermanent, Part Time£25,959 per annumLocation
Recuriter: Essex County Council

Science Teacher

Durham County Council
£32,916 - £51,048
Science Teacher M1- UPS3 £32,916 - £51,048 Permanent, Full time Required as soon as possible The Woodlands EHN Team is seeking to appoint a qualified Ferryhill
Recuriter: Durham County Council

Hospitality and Catering Instructor

Durham County Council
£27,663 - £37,875 Instructor Scale B
WHAT IS INVOLVED? The team at Aycliffe Secure Centre provide a caring, trauma informed and aspirational environment for young people aged between 10 a Newton Aycliffe
Recuriter: Durham County Council

Lawyer Contracts and Procurement

Durham County Council
£47,181 to £51,356 p.a. (Grade 13)
An exciting opportunity has arisen for a Contracts and Procurement Lawyer to work at Durham County Council as part of the Legal and Democratic Service Durham
Recuriter: Durham County Council
Linkedin Banner