LGA calls for reform of business rates appeals system

As part of its submission to the Treasury’s business rates review, the LGA has called for alterations in the business rates appeals system so that councils are given the chance to defend their income and protect communities from potentially damaging claims. The submission also calls for councils to be able to set business rates in their local area based on a reformed property tax and retain 100 per cent of all business rates income.

There are nearly 1.8 million properties liable for business rates in England. With greater local control, councils could ensure rate reduction and discount schemes which could benefit thousands more business nationwide.

Cllr Claire Kober, Chair of the LGA's Resources Board, said: We need a business rates system which is buoyant, responds to local needs, promotes growth and is fit for the 21st Century. The financial risk facing local authorities due to business rates appeals remains one of the biggest weaknesses of the current system and has the potential to damage councils' ability to improve people's quality of life, support local businesses and drive local growth.

She added that : “business rates account for almost a fifth of local government income and raised around £23 billion in 2012/13 to fund local services. Councils must be able to contribute to the appeals process. This would not only enhance its accuracy but would help discourage speculative appeals like the one we have seen from Virgin Media. Councils and businesses both agree that business rates should be a local tax set by local areas which boosts growth and ensures local economies and businesses thrive. Councils could do so much more to support small businesses if we were given the freedom and finance to set rates and discounts locally. If all business rates income was retained by local government we could also invest in infrastructure and vital public services.”

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