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

Homelessness Personal Advisor - Leaving & After Care Team

Essex County Council
£33049.0000 - £37698.0000 per annum
Homelessness Personal Advisor - Leaving & After Care TeamFixed Term, Full Time£33,049 to £37,698 per annumLocation
Recuriter: Essex County Council

Social Worker - Adoption Mid Essex

Essex County Council
£36124.0000 - £51834.0000 per annum
Social Worker - Adoption Mid EssexPermanent, Full Time£36,124.00 to £51,834.00 Per Annum Location
Recuriter: Essex County Council

Health and Social Care Trainer - North Essex

Essex County Council
£29468 - £34668 per annum
Health and Social Care Trainer - North EssexPermanent, Part Time£29,468 to £34,668 per annum (full time equivalent) Location
Recuriter: Essex County Council

Senior Practitioner Children, Young People with Disabilities

Essex County Council
£48205.0000 - £57988.0000 per annum
Senior Practitioner - Children and Young People with Disabilities Mid EssexSecondment, Full Time£48,205 to £57,988 Per Annum Location
Recuriter: Essex County Council

Service & Case Support Officer (CDC)

City Of Doncaster Council
£26,403 - £27,255 pro rata
An exciting and unique opportunity has arisen for a permanent part-time member of staff to join the Service & Case Support Team. Doncaster, South Yorkshire
Recuriter: City Of Doncaster Council
Linkedin Banner