Business Rates Avoidance Schemes

Baroness Kramer Excerpts

Wednesday 16th September 2026 Lords Chamber

[Lord Wilson of Sedgefield (Lab)]

I thank my noble friend for his question. While they do not apply to business rates, additional criminal sanctions were introduced in the Finance Act 2026 that will enhance the deterrent against the promotion of tax avoidance and increase protection against harm caused to the Exchequer, the taxpayer and the tax system. The new measures, when combined with HMRC’s existing powers, mean that promoters of marketed tax avoidance will face large fines or criminal sanctions if they do not disclose their avoidance scheme, promote types of schemes that HMRC has set out as prohibited, do not comply with our information notices or do not stop promoting their schemes when issued with a legal notice requiring them to do so. There is a lot going on, but I accept the point that my noble friend makes.

[Baroness Kramer (LD)]

My Lords, despite the court ruling that made it illegal to practice box shifting, as described by the noble Lord, Lord Sikka, and some of these ridiculous things such as snail farming, many local authorities are finding it hard to enforce. They do not have the resources and get caught in fairly elongated court processes. Have the Government looked at giving them more direct and immediate powers to be able to crack down on this? These landlords go from one strategy to another, one form of cheating to another, and the close-down is vital.

[Lord Wilson of Sedgefield (Lab)]

I accept what the noble Baroness is saying. The Government are committed to consulting on a general anti-avoidance rule, covering all local authorities. There is something similar in Scotland and Wales, and the Government are seriously looking at it. I will leave the question of when it will happen to the Chancellor of the Exchequer in the Budget.