Cash-strapped council to refund millions in taxes

Bracknell Forest council has already faced two decades of cuts

A cash-strapped council is having to pay out up to five years' worth of business rate refunds to more than 20 companies.

Businesses in The Lexicon shopping centre are clawing back millions of pounds of tax from Bracknell Forest Council, just as the authority is facing financial troubles.

The refunds are the result of appeals by several companies to reduce the amount of tax they owe in business rates in Bracknell since 2017.

Council leader Mary Temperton said: "This will reduce our income for years ahead."

The pay outs come as an unexpected hit to the already struggling council after two decades of cuts.

Stuart Mckellar, the council's director of resources, said: “The consequence of that is we are having to repay a very significant sum – many millions – in the current financial year.”

"It’s something that is completely out of our control." Mr Mckellar added.

Companies have to pay business rates to councils based on the value of buildings or office space that they occupy, similar to council tax.

But unlike council tax, the amount they pay is based on an assessment of the property’s value by the government’s Valuation Office Agency, which takes place every five years.

The council only keeps some of the money it collects, passing the rest on to the government.

Businesses can appeal to the government if they think they should pay less however councils are only informed if the appeal is successful.