Laura Sharman Friday, January 17, 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

RCHW Site Operative

Essex County Council
Up to £25959.00 per annum
RCHW Site OperativePermanent, Part Time£25,959 per annum full time equivalent Location
Recuriter: Essex County Council

RCHW Site Operative

Essex County Council
Up to £25959.00 per annum
RCHW Site OperativePermanent, Part Time£25,959 per annum full time equivalent Location
Recuriter: Essex County Council

Principal Planner

North Yorkshire Council
£47,181 to £51,356 per annum
Are you ready to take the next step in your planning career? Selby, North Yorkshire
Recuriter: North Yorkshire Council

Principal Planner

North Yorkshire Council
£47,181 - £51,356 per annum
Are you ready to take the next step in your planning career? Harrogate, North Yorkshire
Recuriter: North Yorkshire Council

Homelessness Personal Advisor

Essex County Council
£33049.00 - £37698.00 per annum
Homelessness Personal AdvisorFixed Term, Full Time£33,049 - £37,698 per annumLocation
Recuriter: Essex County Council
Linkedin Banner