£2.5bn diverted to cover business rates appeals risk
0Councils have been forced to divert £2.5bn from local services to cover the risk of business rate appeals, according to the Local Government Association. The LGA cited figures from the Valuation Office Agency showing 133,000 businesses are still waiting for a decision on their business rates valuation from 2010.
It called on the government to take the financial risk from business rates appeals away from local government.
John Fuller, vice chairman of the LGA’s resources board, said: “Despite not setting business rates or ruling on appeals, councils are having to take billions of pounds away from already stretched local services, such as adult social care, protecting children and supporting businesses and boosting local growth, to cover the financial risk and uncertainty arising from this backlog of appeals. This is completely unfair.”
He said that the government’s plan to allow councils to keep more business rates income will only increase the risk of appeals to local government.
