Number of business rates appeals “creating financial uncertainty for councils”: LGA

More than 133,000 businesses are still waiting for business rates valuation appeals filed since 2010 to be resolved, creating financial uncertainty for councils, the Local Government Association (LGA) has said.

Government data analysed by the LGA showed that more than one million businesses had challenged their rates bill since 2010. 

It said councils had had to put aside £2.5bn to cope with the consequences of business rates appeals, since they must pay half the cost of any backdated refunds in cases where appellants succeed. 

The LGA said the Government should remove the financial risk from business rates appeals from local authorities.

It also urged ministers to allow councils to retain more business rates income locally and to impose a time limit for all but exceptional appeals, such as the six months limit that applies in Scotland.

The LGA also wants reforms to make online businesses pay a fair contribution towards business rates.

John Fuller, vice chair of the LGA resources board, said: “Ongoing delays in tackling business rate appeals from 2010 are heaping further financial uncertainty and pressure on our local services.”

Cllr Fuller said it was right that businesses were able to challenge valuations, but the present system meant that, “councils are having to take billions of pounds away from already stretched local services…to cover the financial risk and uncertainty arising from this backlog of appeals. This is completely unfair.”