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

Housing Application Development and Support Officer

London Borough of Richmond upon Thames and London Borough of Wandsworth
43545 - 55992 per annum
Job Title
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Youth Support Worker - Multi-Disciplinary Team

Essex County Council
£25580.00 - £26924.00 per annum
Youth Support Worker - Multi-Disciplinary TeamFixed Term, Full Time£25,580 to £26,924 per annumLocation
Recuriter: Essex County Council

Housing Administration Officer

Durham County Council
Grade 4 £25,583 - £26,824 pro rata (Pay award pending)
We currently have a vacancy within Business Services for 1 x Permanent, Part Time Business Administrative assistant role. WHAT IS INVOLVED? You wi Durham
Recuriter: Durham County Council

Operational Support Assistant

Durham County Council
Grade 4 £25,583 - £26,824 (Pay award pending)
We are looking to recruit an Operational Support Assistant to provide high-quality administrative and business support to frontline services within Al Durham
Recuriter: Durham County Council

Clerical Officer Receptionist

Durham County Council
Grade 3 £25,185 - £25,989 pro rata (Pay award pending)
We have an exciting opportunity for a temporary part-time Clerical Officer/Receptionist to join our dedicated team within Business Services. WHAT I Durham
Recuriter: Durham County Council
Linkedin Banner