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

Curriculum Lead (SEND)

North Yorkshire Council
£38,220 - £42,839
You will provide specialist leadership within your curriculum area whilst continuing to teach and work directly with learners. North Yorkshire, he base for the role will be the closet PLC hub to home location
Recuriter: North Yorkshire Council

Administration Assistant

Middlesbrough Council
£27,274
You will be required to provide a wide range of technical and administrative support including call handling Middlesbrough, North Yorkshire
Recuriter: Middlesbrough Council

Administration Assistant

Middlesbrough Council
£27,274
You will be required to provide a wide range of technical and administrative support including call handling Middlesbrough, North Yorkshire
Recuriter: Middlesbrough Council

Accredited Financial Investigator (AFI)

Middlesbrough Council
£34,811 - £48,738
You will work on confiscation, restraint, money laundering investigations, cash seizures, and asset recovery Middlesbrough, North Yorkshire
Recuriter: Middlesbrough Council

Accounts Payable Adviser

Middlesbrough Council
£28,153 - £29,071 pro rata
You’ll bring a professional, customer-focused approach, excellent attention to detail Middlesbrough, North Yorkshire
Recuriter: Middlesbrough Council
Linkedin Banner