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

Senior/Principal Regeneration Officer

Fareham Borough Council
£45,465 - £55,379
Our town centre regeneration is moving from planning to delivery, and we're looking for someone who wants to help make regeneration happen. Fareham, Hampshire
Recuriter: Fareham Borough Council

Chief Executive & Head of Paid Service

Hull and East Yorkshire Combined Authority
£150,000 - £170,000
Chief Executive & Head of Paid Service Hull
Recuriter: Hull and East Yorkshire Combined Authority

Chief Legal Officer

Sandwell Metropolitan Borough Council
£101,275 - £117,266
We are now seeking an exceptional legal leader to join us as Chief Legal Officer. Sandwell, West Midlands
Recuriter: Sandwell Metropolitan Borough Council

Major Events Manager

Powys County Council
£49817 - £51928
This is an exciting opportunity to lead Powys County Council's preparations for three major events in 2027 Llandrindod Wells, Powys
Recuriter: Powys County Council

Debtors and Collection Officers

Durham County Council
£27,274 to £29,542 p.a. (Grade 5)
This is an exciting opportunity to join a dynamic and ever-changing revenues environment. You’ll have the chance to develop your skills, gain valuable Spennymoor
Recuriter: Durham County Council
Linkedin Banner