Business Rates Avoidance Schemes

Debate between Lord Wilson of Sedgefield and Lord Sahota

Wednesday 16th September 2026 Lords Chamber

[Lord Wilson of Sedgefield (Lab)]

I do not know the figure off the top of my head, but I can look into it and write to the noble Baroness with the answer.

[Lord Sahota (Lab)]

My Lords, years ago, when I was a council leader, we had some instances where there were really large buildings lying empty, so the landlords would have to pay some form of business rent on them. What they did was put a desk and a chair inside for a charity, so that they did not have to pay any business rates. Because the landlords had to pay such a large amount in rates, they would pay something to the charity. Are the Government aware of that kind of scam?

[Lord Wilson of Sedgefield (Lab)]

We know that quite a few scams are going on. The industry—if I can call it that—has a very good way of evolving, changing and adapting, which is why we do not want to make any policy decisions prior to the Budget. They morph into other kinds of entity, and we want to stop that. We want to crack down on the wide range of scams going on. A general anti-avoidance rule may be the answer.