Laura Sharman 17 January 2020

Councils losing £250m a year through business rates avoidance

Councils are losing £250m a year due to businesses avoiding paying their rates, new research has found.

A new survey by the Local Government Association (LGA) found eight in 10 councils said they do not have enough power to tackle the problem.

The LGA is calling for tougher legislation to close loopholes and tackle business rates avoidance. It also wants councils to have new legal powers to enter and inspect non-domestic properties to verify information relevant to billing.

Councils said the most common method of business rates avoidance was businesses repeatedly only occupying a property for six weeks to take advantage of the three month empty property exemption.

Cllr Richard Watts, chair of the LGA’s Resources Board, said: 'Too many businesses are exploiting loopholes and manipulating the system to avoid paying the tax they owe.

'The scale of business rates avoidance shows more needs to be done to tackle this behaviour and reduce avoidance. Every penny lost through business rates avoidance is money that could be spent on adult social care, children’s services, fixing roads and other vital community services.

SIGN UP
For your free daily news bulletin
Highways jobs

Team Leaders

Durham County Council
Grade 8 £32,597 - £36,363
Team Leaders – Opportunities are available across the County Durham Area   Salary
Recuriter: Durham County Council

Residential Workers

Durham County Council
Grade 7 £30,024 - £33,699
Residential Workers - Opportunities are available across the County Durham Area Salary
Recuriter: Durham County Council

Classroom Teacher - Maternity Cover

Durham County Council
£32,916 - £45,352
Teacher (Maternity cover – to be discussed at Interview) MPS 1-6 £32,916 - £45,352 Full time, Temporary – maternity cover Required from September 2026 Durham
Recuriter: Durham County Council

School Administrator

Durham County Council
£26,403- £28,598
School Administrator Grade 5 - £26,403- £28,598 Permanent - Part Time (18.5 hours over 3 days, Hours to be arranged with Headteacher) Required to star Durham
Recuriter: Durham County Council

Teacher

Durham County Council
£32,916 - £51,048
Teacher MPS 1-6 / UPS1-3 £32,916 to £51,048 per annum Permanent, Full Time Required for September 2026 Are you an inspirational teacher?  Do you want Durham
Recuriter: Durham County Council
Linkedin Banner