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

Head of Housing Strategy, Quality and Assurance

Redbridge London Borough Council
£89,037 - £92,538
We’re looking for someone who can think holistically, and work in collaboration with other stakeholders Redbridge, London (Greater)
Recuriter: Redbridge London Borough Council

Driver

North Yorkshire Council
£24,796 - £25,989 per annum, pro rata
We are looking for caring, flexible, team orientated and committed people to help us provide this transport. North Yorkshire
Recuriter: North Yorkshire Council

School Crossing Patrol

North Yorkshire Council
£12.85 - £13.47 per hour
All our school crossing patrols provide a really valuable service to the local community Knaresborough, North Yorkshire
Recuriter: North Yorkshire Council

Adults Social Worker - Mid Essex

Essex County Council
£37185 - £50081 per annum
Register your interest here to be notified of upcoming Social Worker opportunities within Essex County Council's Adult Social Care services in Mid Es England, Essex, Chelmsford
Recuriter: Essex County Council

Highways Maintenance Operative

Amey
£Competitive
Working with National Highways, Amey maintains over 700 kilometres of roads across the East Midlands Northampton, Northamptonshire
Recuriter: Amey
Linkedin Banner