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

Shared Planning Lawyer

Broxbourne Borough Council
Up to £68,506 pa
Are you a focused, enthusiastic team player who enjoys a varied and interesting caseload? Borough Offices, Bishops’ College, Churchgate, Cheshunt
Recuriter: Broxbourne Borough Council

Families First Partnership Manager

Nottingham City Council
£58,602 - £62,109
As Families First Partnership Manager, you will play a pivotal role in leading Nottingham’s Families First approach Nottingham, Nottinghamshire
Recuriter: Nottingham City Council

Experts at Hand Co-ordinator

London Borough of Richmond upon Thames and London Borough of Wandsworth
£42,081 - £50,994 per annum
Experts at Hand Co-ordinator
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Governance Professional

North Yorkshire Council
£14.59 to £15.56 per hour
Typically, you will work with an allocation of schools within an agreed geographical area. Northallerton, North Yorkshire
Recuriter: North Yorkshire Council

Social Worker - Disabled Children's Team

North Yorkshire Council
£39,481 to £44,253 per annum
Our 0–18 Disabled Children’s Service takes a holistic and child-centred approach, working with a diverse range of children Northallerton, North Yorkshire
Recuriter: North Yorkshire Council
Linkedin Banner