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

Targeted Youth Adviser

Essex County Council
£29512.00 - £34720.00 per annum
Targeted Youth AdviserPermanent, Full Time£29,512 to £34,720 Per AnnumLocation
Recuriter: Essex County Council

Administration Assistant

Durham County Council
Grade 4 £25,583 - £26,824
A vacancy has arisen within Business Services for a full-time Administration Assistant. This is an exciting opportunity to join the team who support o Peterlee
Recuriter: Durham County Council

Roofer

Durham County Council
£36,040 p.a. (Made up of £24,027 salary plus £12,013 p.a Interim Operational Allowance)
Salary
Recuriter: Durham County Council

Classroom Teacher (static)

Durham County Council
£32,916 - £51,048
Required from 1 September 2026. Permanent, full time. This post is based at Croft Community School which is a generic special school for pupils who h Stanley
Recuriter: Durham County Council

Workshop Fitter

Durham County Council
£32,597 £36,363
You will be based at Chilton Depot     Fleet Services in Environment are looking for a Workshop Fitter to join their Team.   WHAT IS INVOLVED? To und Durham
Recuriter: Durham County Council
Linkedin Banner