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

Complaints Officer - 12 month Fixed Term Contract

Essex County Council
£27568.00 - £32432.00 per annum + +26 Days Leave & Local Gov Pension
Complaints OfficerFixed Term, Full Time£27,568 to £32,432 Per AnnumLocation
Recuriter: Essex County Council

Procurement Manager

Alongside
£24,000 per year
Alongside is the new name for Julian House. Bath, Somerset
Recuriter: Alongside

Social Worker

Gloucestershire County Council
£38,220 - £40,777
Are you an experienced Social Worker? Gloucestershire
Recuriter: Gloucestershire County Council

Logistic Assistant

Gloucestershire County Council
£26,403 - £27,694 per annum
We are seeking a logistic assistant to come and join our team! Gloucestershire
Recuriter: Gloucestershire County Council

Specialist Practitioner (Safeguarding)

Gloucestershire County Council
£41,771 - £47,181 per annum
Are you passionate about working with people to promote independence and dedicated to making a difference? Gloucester, Gloucestershire
Recuriter: Gloucestershire County Council
Linkedin Banner