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

Director of Legal and Governance

Cumbria Combined Authority
£109,000
The new Cumbria Combined Authority has been established to unlock that potential. Cumbria
Recuriter: Cumbria Combined Authority

Executive Director of Finance

Cumbria Combined Authority
£131,000
The new Cumbria Combined Authority has been established to unlock that potential. Cumbria
Recuriter: Cumbria Combined Authority

Reviewing Officer

Durham County Council
Grade 6 - £28,142 - £31,022 (pay award pending)
We are looking to appoint a full time Reviewing Officer working within a Countywide Adult Care Learning Disability Review Team overseeing the annual r Durham
Recuriter: Durham County Council

Lunchtime Supervisor

Durham County Council
£24,796 pro rata (Pay award pending)
Permanent, Part time. Term time only. 11.30am to 1.00pm daily The Governors of Red Rose Primary School wish to appoint two enthusiastic and motivated Durham
Recuriter: Durham County Council

Ugobus Driver - Clacton

Essex County Council
Up to £25959.00 per annum + pension
Ugobus Driver - ClactonPermanent, Part Time£25,959 per annum (full time equivalent)Location
Recuriter: Essex County Council
Linkedin Banner