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

Prevention and innovation: Securing adult social care's future

By Cllr Dr Wendy Taylor MBE | 11 November 2025

Chair of the LGA’s Health and Wellbeing Committee Cllr Dr Wendy Taylor MBE says the message from the latest adult social care data is both a warning and an o...

BUSINESS

Putting the sector in the Budget driving seat: The Budget councils deserve

By Simon Christian | 06 November 2025

Simon Christian says that while a Budget that reflects councils’ responsibilities and the urgency of the challenges ahead is vitally needed, this must be mat...

BUSINESS

EXCLUSIVE: Intervention cost hits £9.5m

By Dan Peters | 30 October 2025

Councils have been forced to shell out £9.5m on Government intervention over the last four years, research by The MJ has found.

BUSINESS

Adding up the price of local government interventions

By Dan Peters | 30 October 2025

As more councils in intervention increases, the price tag for commissioners is skyrocketing. Dan Peters crunches the numbers and commissioner Gavin Jones exp...

Popular articles by Laura Sharman