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

Registration Service Advisor

Essex County Council
Up to £25959.00 per annum
Registration Service AdvisorFixed Term, Full Time£25,959 Per AnnumLocation
Recuriter: Essex County Council

Part Time Pre-school / Nursery Assistant (term time only)

Essex County Council
Up to £25959.00 per annum + Pro Rata
Part Time Pre-school / Nursery Assistant (term time only)Permanent, Part Time£25,959 Per Annum, full time equivalentLocation
Recuriter: Essex County Council

Team Leader – Traffic Network Management

Hounslow London Borough Council
£52,194 – £57,402
We’d love you to join us at the London Borough of Hounslow! Hounslow (City/Town), London (Greater)
Recuriter: Hounslow London Borough Council

Director of Young People and Opportunities

Newham London Borough Council
£98,994 - £120,507
A defining role for young people in Newham Newham, London (Greater)
Recuriter: Newham London Borough Council

Building Compliance & Reactive Works Manager

East Devon District Council
£36,363 - £42,839
We have an exciting opportunity for a Building Compliance & Reactive Works Manager to join our Buildings and Facilities Management Team. Devon
Recuriter: East Devon District Council
Linkedin Banner