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

Administration Officer

Durham County Council
Grade 5 £26,403 - £28,598 (Pay award pending)
Are you an organised and proactive administrator who is passionate about supporting learners to achieve their potential? Join DurhamLearn and become Durham
Recuriter: Durham County Council

Highways Trainer (2 Posts)

Derbyshire County Council
£35,422 - £38,730
Are you passionate about developing people and ensuring compliance across a complex operational service? Derbyshire
Recuriter: Derbyshire County Council

Family Support Parenting Practitioner

Gloucestershire County Council
£33,143 - £36,363
Join our dedicated team in Children's Services and make a real difference in the lives of children and families across Gloucestershire. Gloucestershire
Recuriter: Gloucestershire County Council

Children and Families Senior Social Worker/ Social Worker

Gloucestershire County Council
£39,152 - £47,181
We are currently recruiting for Social Workers and Senior Social Workers in all our locality teams. Gloucestershire
Recuriter: Gloucestershire County Council

Family Drug and Alcohol Court Social Worker

Gloucestershire County Council
£39,152- £47,181 per annum
Gloucestershire Children's Service are looking for an FDAC Social Worker to join the Tewkesbury Children and Families team. Gloucester, Gloucestershire
Recuriter: Gloucestershire County Council
Linkedin Banner