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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

Fiscal devolution: Roadmap is a good starting point

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Alex Walker says fiscal devolution has started to take shape. But the destination should be more local freedom over tax rates and more revenue growth kept lo...

BUSINESS

Fresh equal pay warning

By Dan Peters | 30 October 2026

Councils could face a fresh wave of equal pay litigation under Whitehall reforms as HR cuts make it harder for councils to defend claims.

BUSINESS

Councils and AI: The future is now

By Eddie Copeland | 29 October 2026

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BUSINESS

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By Tracy Bingham | 29 October 2026

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