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

School Crossing Patrol Officer - Thomas Willingale School

Essex County Council
Up to £13.00 per hour
School Crossing Patrol Officer - Thomas Willingale SchoolPermanent, Term Time£13.00 per hourLocation
Recuriter: Essex County Council

Senior Practitioner - Leaving & Aftercare Team, Mid Essex

Essex County Council
£46574.0000 - £56027.0000 per annum
Senior Practitioner - Leaving & Aftercare Team, Mid EssexPermanent, Full Time£46,574 to £56,027 per annumLocation
Recuriter: Essex County Council

Employability & Skills Adviser - NEET

Essex County Council
£32701.0000 - £38471.0000 per annum
Employability & Skills Adviser - NEETPermanent, Full Time£32,701 to £38,471 per annumLocation
Recuriter: Essex County Council

Customer Services Assistant

Essex County Council
Up to £25081.00 per annum
Customer Services AssistantPermanent, Part Time - 18.5 hours £25,081 per annum (FTE)Location
Recuriter: Essex County Council

School Crossing Patrol Officer - Bishops' CE & RC School

Essex County Council
Up to £13.00 per hour
School Crossing Patrol Officer - Bishops' CE and RC Primary SchoolPermanent, Term Time£13.00 per hourLocation
Recuriter: Essex County Council
Linkedin Banner