Title

BUSINESS

LGA calls for end to rates loophole

Councils are being forced to write off millions of pounds in unpaid business rates due to a legal loophole, town hall leaders have warned.

Councils are being forced to write off millions of pounds in unpaid business rates due to a legal loophole, town hall leaders have warned.

The Local Government Association (LGA) said some councils faced business rate debts of nearly £1.5m.

Smith Square called for councils to be given the power to suspend the licenses of businesses that ‘wilfully or persistently' fail to pay their business rates.

It also called for a change in the law to prevent companies going bankrupt, only to start again overnight with the same directors in place.

Cllr Simon Blackburn, the LGA's licensing spokesman, said: ‘The Government should close the phoenix company loophole by making it a legal requirement for directors of bankrupt companies who start up a new business to pay their old company's business rate debts.

‘Giving council powers to refuse or suspend a premises licence at an earlier stage of the debt recovery process would be a simple way to tackle this problem and protect local services.'

BUSINESS

Go North!

By Zoe Billingham | 04 December 2025

This Budget makes one thing clear: the Government is throwing its weight behind the North. Zoë Billingham unpacks the gains for England’s overlooked regions.

BUSINESS

The Budget: A step towards fiscal devo

By Heather Jameson | 02 December 2025

The Budget took its first steps towards local government finance reform and Total Place 2.0, but did it resolve any of the major issues facing local governme...

BUSINESS

Budget: Council tax, levies and local accountability

By Iain Murray | 01 December 2025

The Budget announcements on the ‘mansion tax’, the visitor levy and SEND suggested a system stuck between increasing central control and local accountability...

BUSINESS

Rachel Reeves: The Queen of fiscal drag

By Mike Emmerich | 28 November 2025

The chancellor may have done respectably on putting the public finances on a more secure long-term footing, but her measures do little to stem Britain’s post...

Popular articles by Laura Sharman