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

Levelling the paying field

By Martin Ford | 17 September 2025

With a host of newly-minted unitaries set to spring up around England in the coming months and years, Martin Ford looks at the thorny issue of pay harmonisation

BUSINESS

Getting fiscal devolution right

By Luke Raikes | 28 August 2025

Luke Raikes says local tax powers can help revive the places Whitehall abandoned, and he proposes three quick wins the Government could move forward with imm...

BUSINESS

Taking back control

By Emily Twinch | 27 August 2025

As the Government commits to insourcing as the best option for public services, Emily Twinch talks to sector experts about the advantages of bringing service...

BUSINESS

Calls for fair funding tax flexibility

By Martin Ford | 22 August 2025

The Government has been urged to lift the council tax referendum limit to help local authorities hit by the fair funding review.

Popular articles by Laura Sharman