A new survey by property management firm ASTOP, has revealed an overwhelming call for reform in the current business rates relief system, with 92% of respondents backing this.
With 132 responses from key stakeholder groups—including Commercial Landlords & Asset Managers; Charities, Good Causes & Temporary Commercial Occupiers; Local Authorities & Public Officers; and Other Influencers—the survey highlights the pressing issues surrounding business rates avoidance.
Overall key findings show that across all groups of respondents, there is strong opposition to rates avoidance tactics. 97% of respondents were against ‘box shifting’, where empty boxes and/or Bluetooth devices are placed in buildings to claim occupation for empty rates relief, costing individual authorities up to £35m a year; 92% were against ‘snail farms’, used to claim agricultural rates relief as seen in a case with a Liverpool landlord last year; and 92% were against fake ‘prayer rooms’, used to claim public worship relief, as with 60 spaces in Discovery Park in Dover earlier this year. To surmise, the survey revealed strong opposition to unethical, controversial, or immoral rates avoidance tactics across all respondent groups.
By contrast, all surveyed supported partnering with charities as an ethical solution to repurpose vacant properties while benefitting from charitable rates relief, thereby addressing property underutilisation, financial concerns, and community needs. These results have significant implications for the broader discussion on business rates avoidance, underscoring the urgent need for a system that deters unethical practices while promoting ethical alternatives, such as facilitating charitable occupation of vacant spaces.
Rachel Reeves’ recent Spring Budget further spotlighted concerns over tax avoidance in the property sector, reinforcing calls for reforms that align economic policy with ethical practice, and the survey suggested potential regulatory implementations. 96% of respondents favoured a trial of ‘Fresh Start Relief’ in place of empty rates relief, which would be available to new occupiers of empty properties from months 7 to 9 of occupation, as done in Scotland. Other suggestions included case-by-case assessments (75%), devolving powers to local authorities (68%), and establishing an independent regulatory oversight body (58%).
Together, the survey findings and the Budget’s emphasis on curbing tax avoidance create a strong mandate for policymakers to urgently reform business rates avoidance practices and promote sustainable, community-focused solutions to the benefit of all parties.
Shaylesh Patel, Founder and CEO of ASTOP, “This survey acts as a powerful call to arms for urgent reform in the business rates system. It highlights the widespread consensus among key stakeholders that we must eliminate unethical practices and instead embrace sustainable, community-driven solutions. At ASTOP, we believe this is a pivotal moment, a catalyst for change that will reshape the future of vacant property management and promote a fairer, more ethical approach to business rates.”
Bassam Mahfouz, Member of the London Assembly for Ealing and Hillingdon, “The findings of this survey outline a clear need for business rates reform, one that is recognised by the new Labour Government, which was elected on a platform to deliver change. Tax avoidance and loopholes not only undermine local authority funding streams and is unfair on good, hard-working business owners. As part of the Government's review of business rates, I hope it will seek to create a system that promotes fairness, accountability, and delivers community benefit. These findings are an important step toward that much-needed change. "