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

Tree Officer

Mansfield District Council
£35,570 - £40,444 per annum
You will provide specialist arboricultural advice to Council departments, elected Members, residents, contractors and other stakeholders Mansfield, Nottinghamshire
Recuriter: Mansfield District Council

Waste Services and Fleet Manager

Mansfield District Council
£57,237 - £59,577 per annum
You will lead projects and programmes, evaluate performance and benchmarking information Mansfield, Nottinghamshire
Recuriter: Mansfield District Council

Highways Network Manager

Bridgend County Borough Council
£58,558 - £59,695 per annum
The role will require a candidate who can oversee, direct and mange service areas Bridgend (Pen-y-bont ar Ogwr)
Recuriter: Bridgend County Borough Council

Social Worker

Royal Borough of Greenwich
£42,771-£55,323 Career Grade (ASYE SCP 29-30 | Consolidating SCP 32-35 | Proficient SCP 35-41)
Build meaningful relationships with children, young people and families. London (Greater)
Recuriter: Royal Borough of Greenwich

Senior Educational Psychologist - Expert at Hand Lead

Royal Borough of Greenwich
Soulbury Scale B5 – B8 (£65,929 - £69957) plus Inner London allowance (£3940) and up to 3 SPA points (salary package currently under review)
You will lead the ongoing development, implementation, monitoring and evaluation of the model, ensuring that schools, settings London (Greater)
Recuriter: Royal Borough of Greenwich
Linkedin Banner