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 Leader - Electrical Engineering/Street Lighting

North Yorkshire Council
£51,356 - £55,539 per annum
Are you an experienced Street Lighting Engineer who would be interested in joining an award-winning team Leeming Bar, Northallerton
Recuriter: North Yorkshire Council

Roaming Ranger

Essex County Council
£25959.0000 - £29820.0000 per annum
Roaming RangerPermanent, Full Time£25,959 to £29,820 per annumLocation
Recuriter: Essex County Council

Partnership Director - Central Pool

West Midlands Pension Fund
£83,576 - £95,386
Shape the future of one of the UK's largest public sector investment partnerships Wolverhampton, West Midlands
Recuriter: West Midlands Pension Fund

Business Support Officer

Royal Borough of Greenwich
£38,256 to £39,276
Children and young people are at the heart of everything we do at the Borough of Royal Greenwich. Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich

Elective Home Education Support Officer

Royal Borough of Greenwich
£38,256 to £39,276
Children and young people are at the heart of everything we do at the Borough of Royal Greenwich. Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich
Linkedin Banner