Some landlords take advantage of a loophole in the law to obtain rate relief. They put boxes in an empty commercial space – then say the space is occupied for six weeks. The boxes are then removed, and the landlord gets three months’ empty rates relief.

Occupation of commercial property that ends after 6 weeks will trigger eligibility for a 3 (or 6) month rates free period. Unscrupulous landlords and multi chain operators responsible for their closed branches take advantage of this loophole by placing boxes inside an otherwise empty premises, claiming it is occupied for 6 weeks, to benefit from the rates free period thereafter. When the rates free period is over, again placing boxes in the space for a further 6 weeks and repeating the cycle. Hence box shifting. Councils lose over two thirds of their rates income every time this cycle is repeated.

To stop this, we want the Government to replicate what has happened in Wales, and increase the required period of occupation, that activates rates exemption, from 6 weeks to 6 months.

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Further information

The English Government is currently carrying out an  open consultation on business rates avoidance, exploring the causes of rates avoidance and potential measures to combat this, in order to protect essential funding for local services.

The Welsh Government effectively stopped box shifting in Apr 2022. More information about this in the links below:

Dear Government,

We, the undersigned, are writing to express our support for the new charity initiative, Ban Box Shifting, which aims to tackle the issue of business rates avoidance in England and save our councils an estimated £250 million annually. This is an important matter that affects our communities and public services, and we believe it is time to take action.

The practice of box shifting, whereby landlords and multi-chain operators exploit legal loopholes to trigger a three- or six-month rates-free period, is draining vital funds from our local authorities. It is estimated that this tactic costs councils £250 million per year, a sum that could be used to build 2,000 council homes, fund 150,000 hospital beds, or establish 12 new secondary schools.

It is time for England to follow in the footsteps of Scotland and Wales, both of which have already passed legislation to address this issue. We are urging the Government to consider the Ban Box Shifting five-point manifesto:

1. Ban Box Shifting by extending the period of occupation which activates rates exemption from six weeks to six months
2. Give councils more powers in deciding when empty rates relief can legitimately be granted
3. Put a one-year time limit on avoidance and properties left in limbo because of insolvent tenants
4. Remove the snail sham option in non-agricultural space (occupiers sometimes put snail farms or other similar species to claim a space is agricultural land)
5. Promote ethical rates mitigation.

By extending the occupation period required for rates exemption and granting councils more authority to decide when relief can be provided, we can prevent businesses from exploiting loopholes for financial gain. Furthermore, implementing a one-year time limit on avoidance and removing sham options will provide additional safeguards against fraudulent practices.

We also advocate for the promotion of ethical rates mitigation, which involves offering rent-free spaces to charities. This sustainable solution benefits local communities, landlords, and charities, and is already recognised by some councils’ estates teams as a means to save money and support communities.

We firmly stand behind the Ban Box Shifting initiative and urge the Government to take action in addressing the issue of business rates avoidance. By doing so, we can save our councils millions of pounds, which can then be reinvested in vital public services for the betterment of our communities.

Sincerely,

Issy Cooke – (Greenwich) – Labour

Varlene Alexander – (Ealing) – Labour

Anthony Molloy – (Brent) – Labour

Yusuf Mukhtar – (Barking) – Labour

Andree Frieze – (Richmond) – Green

James Beckles – (Newham) – Labour

Carolyn Corben – (Newham) – Labour

Rob Nunney – (Manchester) – Green

Richard Silvester – (Bolton) – Labour

Sian Berry – (Camden) – Green

David Jenkins – (Leeds) – Labour

Paul Wray – (Leeds) – Labour

Kevin Ritchie – (Leeds) – Labour

Chloe Goldsmith – (Brighton) – Green

Alistair Chisholm – (Newcastle) – Labour

Alastair Binnie-Lubbock – (Hackney) – Green

Mark Chatfield – (Rutland) – Lib Dem

Graham Minshaw – (Cumberland) – Labour

Sara Muldowney – (Thurrock) – Labour

Megan Wright – (Bracknell Forest) – Labour

Joe Reilly – (New Forest) – Independent

Mike Stonard – (Norwich) – Labour

Paul Gibson – (Sunderland) – Lib Dem

Ashan Jeeawon – (Rother) – Independent

Minesh Parekh – (Sheffield) – Labour

Tim Wye – (Bristol) – Green

Vera Rider – (Cleveland) – Independent

Jo Bird – (Wirral) – Green

Andy Ketchin – (Exeter) – Green

Michael Carthew – (Solihull) – Lib Dem

Judith Grier – (Wirral) – Green

Tess Read – (Exeter) – Green

Andrew Brown – (Bristol) – Lib Dem

Kerry Pickett – (Brighton) – Green

Ruth George – (Derbyshire) – Labour

Jacob Taylor – (Brighton) – Labour

Tim Smith – (Rutland) – Lib Dem

Lucy Bywater – (Bedfordshire) – Green

Darren Hayday – (Buckinghamshire) – Independent

Mark Howard – (Windsor and Maidenhead) – Lib Dem

Gurch Singh – (Windsor and Maidenhead) – Lib Dem

Louis Stark – Herefordshire Council – Liberal Democrats

Geoff Brodie – (Isle of Wight) – Independent Labour

Graham Baker – (Blackpool) – Conservatives

Graham Chapman – (Nottingham) – Labour

Georgia Power – (Nottingham) – Labour

Zoe Garbett – (Hackney and London Mayoral Candidate for the Green Party 2024) – Green Party

Paul Bidwell – (Bracknell Forest) – Labour

Ria Patel – (Croydon) – Green Party

Nick Morphet – (Northumberland) – Green Party

Caritas Charles – (North Somerset) – Independent

Oliver Walters – (Bournemouth, Christchurch and Poole) – Lib Dem

Joe Lever – (Isle of Wight) – Green

Imogen Shepherd – Dubey (Wokingham) – Lib Dem

Charles Adams – (Bassetlaw) – Labour

Tracy Adams – (Devon) – Labour

Carol Whitton – (Devon) – Labour

Janice Johnson – (Rossendale) – Labour

Gill Westcott – (Mid-Devon) – Green

Anthony Skuse – (Wokingham) – Labour

Don Birch – (Norfolk) – Lib Dem

Alasdair Bruce – (East Devon) – Independent

Neil Buttle – (Derbyshire Dales) – Green

Simon Lytton – (Cherwell) – Lib Dem

Peter Lamb – (Crawley) – Labour

Karen Lewing – (Worcester) – Green

Mark Chilton – (Chichester) – Lib Dem

Graham Simpkins – (Westmorland & Furness) – Lib Dem

Neil Hughes – (Westmorland & Furness) – Lib Dem

Danny Lee – (Winchester) – Green 

Michele Gibson – (Spelthorne) – Lib Dem 

Richard Kirkby-Taylor – (Colchester) – Green 

Max Wilkinson – (Cheltenham) – Lib Dem 

Roger Lees – (South Staffordshire) – Conservative 

Ian Middleton – (Oxfordshire) – Green 

Alison Owen – (Barbegh) – Labour 

Donna Richardson – (Southend) – Labour 

Maureen McKay – (East Ayrshire) – Labour 

Theresa Burton – (Runnymede) – Lib Dem

John Turley – (Worthing) – Labour

Sue Mallender – (Rushcliffe) – Green

Angela Lawrence – (West Lindsey) – Conservative

Adam Monk – (South Gloucestershire) – Labour

Marina Asvachin  – (Devon County Council) – Labour

Maximilian Czekalski – (Woolston) – Labour

Sophie Bell – (Milton Keynes) – Lib Dem

Tony Gould – (Ipswich) – Conservative

Alec Sandiford – (Stafford) – Lib Dem

Cathy Morgan – (Sevenoaks) – Conservative

Frances Victory – (Malvern Hills) – Green

Stephen Thompson – (Maidstone) – Green

Andrew McDermid – (Forest of Dean) – Green

David Moore – (Newark & Sherwood) – Independent

Vikki Slade – (Bournemouth, Christchurch and Poole) – Lib Dem

Sarah Pankhurst – (Independent) – Fareham

Ian James – (East Hampshire) – Green

Ros Jackson – (East Lindsey) – Labour

Nick Cox – (East Hertfordshire) – Green

James Lawrence – (Epsom & Ewell) – Lib Dem