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

Residential Support Workers - Development Programme

Durham County Council
£26,403 - £28,598 per annum. Pay award pending.
Residential Support Workers – Temporary 12 Month development opportunity Salary
Recuriter: Durham County Council

Team Leaders

Durham County Council
Grade 8 £32,597 - £36,363 (pay award pending)
Team Leaders – Opportunities are available across the County Durham Area   Salary
Recuriter: Durham County Council

Residential Workers

Durham County Council
Grade 7 £30,024 - £33,699. Pay award pending.
Residential Workers - Opportunities are available across the County Durham Area Salary
Recuriter: Durham County Council

Service Design Lead

Durham County Council
£40,777 to £45,091 p.a. (Grade 11) Pay award pending
We are looking for an experienced and confident Service Design Lead to play a key role in shaping the future of customer services within Durham County Durham
Recuriter: Durham County Council

2 x Health Care and Education Assistants

Durham County Council
£24,796- £25,185 (Pro Rata)
Temporary Contract until August 2027, with the potential to extend, subject to funding. Part Time- 34 hours per week (8.40am to 4pm Mon-Fri) Term Time Spennymoor
Recuriter: Durham County Council
Linkedin Banner