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

Service Manager, Children in Care

Gloucestershire County Council
£60,532 - £63,895 per annum
This is a pivotal role, created to provide dedicated leadership and advocacy for children in care Gloucestershire
Recuriter: Gloucestershire County Council

Family Support Worker

Gloucestershire County Council
£30,024 - £32,597 per annum
Gloucestershire County Council are currently recruiting for a Family Support Worker to join our Family Link Plus team Gloucestershire
Recuriter: Gloucestershire County Council

UgoBus Driver - Harlow

Essex County Council
Up to £25959.0000 per annum
UgoBus Driver - HarlowPermanent, Part Time£25,959 per annum (full time equivalent)Location
Recuriter: Essex County Council

Gym Instructor

North Yorkshire Council
£26,847 to £28,153 pro rata, per annum
As a Gym Instructor, you’ll be at the heart of creating a positive and safe gym experience for all customers. Knaresborough, North Yorkshire
Recuriter: North Yorkshire Council

Leisure Attendant

North Yorkshire Council
£25,620 - £25,989 pro rata
You will also undertake regular cleaning requirements and building safety checks. Pateley Bridge, Harrogate
Recuriter: North Yorkshire Council
Linkedin Banner