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

The public will accept straight talk from politicians so long as there is a rationale

By Michael Burton | 20 May 2026

By claiming the public could have both high public spending and low taxes, the main parties opened the floodgates to the siren voices of the populists, says ...

BUSINESS

Reform's good local government problems

By Ann McGauran | 20 May 2026

Ben Bradley talks to Ann McGauran about the implications of Reform UK’s huge election gains for reorganisation and delivering efficiencies – and he shares th...

BUSINESS

Regeneration: Hiding in plain sight

By David Godfrey | 15 May 2026

Spatial planning and a development corporation – or similar mechanism – are crucial to realising the full economic potential of the Thames Estuary, says Davi...

BUSINESS

Regeneration: Developing devolution

By David Blackman | 13 May 2026

UK plans for fiscal devolution, announced by chancellor Rachel Reeves, could significantly reshape how city regions fund transport and regeneration projects....

Popular articles by Laura Sharman