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

Customer Service Assistant - Brentwood

Essex County Council
Up to £25959 per annum
Customer Service Assistant - BrentwoodFixed Term, Part Time£25,959 per annum(Full time equivalent)Location
Recuriter: Essex County Council

Senior Practitioner - Children & Young People with Disabilities

Essex County Council
£48205.0000 - £57988.0000 per annum
Senior Practitioner - Children & Young People with Disabilities - Mid EssexPermanent, Full Time£48,205 to £57,988 Per Annum Location
Recuriter: Essex County Council

Neighbourhood Highways Engineer (Northern)

Devon County Council
£46,579 - £50,908 per annum
We are recruiting an experienced and collaborative Neighbourhood Highway Engineer to help keep Devon’s highway network safe, resilient and moving. Taw View, Barnstaple, EX32 2SU or Tiverton Business Park, EX16 6T
Recuriter: Devon County Council

Family Time Worker

Nottingham City Council
£29,542 - £32,046
We are looking for compassionate, resilient and skilled Family Time Workers to join our Children and Families Service. Nottingham, Nottinghamshire
Recuriter: Nottingham City Council
Linkedin Banner