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Empty business rates relief 'costs £1bn'

In January 2020 the BBC Shared Data Unit reported empty businesses costed UK taxpayers £1bn a year, prompting calls for urgent reform of the system.

Some councils lose out on millions of pounds of potential business rates income through a tax relief on empty properties, BBC analysis shows.

A local authority mayor in northern England said the money "added up to a lot" and the system was unfair.

The Treasury said it would announce a review of business rates "in due course".

Experts say the current system pits local authorities - which want stable income - against businesses.

The Shared Data Unit makes data journalism available to news organisations across the media industry, as part of a partnership between the BBC and the News Media Association. Stories generated by the partnership included:

The story was also used by the BBC News Channel, Look North, South Today, East Midlands Today, BBC Radio Lincolnshire, BBC Radio Bristol, BBC Radio Nottingham, BBC Radio Scotland, BBC Sussex, Wales Today, BBC Tees, BBC Radio Shropshire, BBC Radio Cumbria, BBC Radio Devon, BBC Radio Ulster, BBC Radio Humberside.

Visualisation

  • Bar chart: Percentage (%) of potential business rates income councils lost out on 2014-2018
  • Bar chart: Lost business rates income from empty properties 2014-2018 (by government region)

Here is the data

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