Councils Could Lose Millions by Converting Shops to Homes

Based on official figures, the Government would miss out on £1bn in business rates payments over the next decade if just a quarter of the empty shops in Britain are converted into houses and flats.  This would mean that cash-strapped local councils, who share business rates receipts with Westminster, would lose £500m. However, the proposal, which is designed to revitalise town centres as well as help solve Britain’s housing shortage, risks creating a financial blackhole for local councils. The estimated tax loss is based on the shortfall councils will face from council tax paid by the occupants of the new homes, compared to the business rates paid by retailers or lands when it was a commercial property.  Read more on the Daily Telegraph website.