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

Engineer (Highways Assets)

The Royal Borough of Kensington & Chelsea Council
£46,422
This is a role where your engineering expertise will directly improve daily life for thousands of residents, workers and visitors. Pembroke Road Council Offices, London, London, W8 6PW, GB
Recuriter: The Royal Borough of Kensington & Chelsea Council

Educational Psychologist - Main Grade

Essex County Council
£43483.0000 - £63394.0000 per annum
Educational Psychologist - Main GradePermanent, Full Time and Part TimeSoulbury Psychologists Scale A from 3 to 8 plus SPA opportunityLocation
Recuriter: Essex County Council

Educational Psychologist - Main Grade

Essex County Council
£43483.0000 - £63394.0000 per annum
Educational Psychologist - Main GradePermanent, Full Time and Part TimeSoulbury Psychologists Scale A from 3 to 8 plus SPA opportunityLocation
Recuriter: Essex County Council

Land Charges Technical Support Officer - Harlow Council

Essex County Council
Up to £15.0000 per hour
Land Charges Technical Support Officer - Harlow District Council Location, HarlowFull time, Temporary 37 Hours per Week £15.00 PAYE / £19.21 Umbrella England, Essex, Harlow
Recuriter: Essex County Council

Solicitor (Procurement)

Cardiff Council
Grade 10 - £49,817 - £53,051
We are keen to recruit a high calibre, dynamic and qualified Solicitor/Barrister.. Cardiff (Caerdydd)
Recuriter: Cardiff Council
Linkedin Banner