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

Adults Social Worker - Learning Disability & Autism

Essex County Council
£38487 - £51834 per annum + Flexible Working, Hybrid Working
Please note that visa sponsorship is not available for this role. Applicants must have a current, unrestricted right to work in the UK.We're an adult England, Essex, Basildon
Recuriter: Essex County Council

Contracts and Projects Officer

London Borough of Richmond upon Thames and London Borough of Wandsworth
Salary From £40,737-£49,365 Depending on skills
Job Title-Contracts & Projects... Wandsworth, London, United Kingdom
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Commissioning Officer - SEND (E3767)

Cheshire East Council
£35,412 - £39,152 per annum
Support delivery of commissioning activity for SEND working with colleagues in CSC Crewe, Cheshire
Recuriter: Cheshire East Council

Commissioning Officer - Childrens Social Care (E3756)

Cheshire East Council
£35,412 - £39,152 Per Annum
You will support the commissioning cycle, contract management and market engagement activity to help secure high‑quality... Crewe, Cheshire
Recuriter: Cheshire East Council

Placement Co-ordinator - Childrens Services (E3754)

Cheshire East Council
£41,771 - £48,072 per annum
Act as the central point of co-ordination for placement requests across Children’s Social Care and SEND. Crewe, Cheshire
Recuriter: Cheshire East Council
Linkedin Banner