THE council missed out on more than £3 million in taxes last year due to the current business rate relief rules - amid fresh calls for an overhaul to the current system.

The latest figures reveal that in 2019, tax relief for empty units in York surpassed £3 million, up from £2.7 million in 2018, and the highest figure recorded since 2016.

The data comes after several organisations - including the British Retail Consortium and the Local Government Association - called for the reform of a “broken tax system”.

Currently, empty shops, offices and warehouses do not have to pay business rates for three months, to allow for property investment and to give landlords time to find a new occupant.

And City of York Council’s executive member for finance and performance, Cllr Nigel Ayre, said that business rates represent 26 per cent of the council’s income and that any significant change would impact on the city’s enterprise.

Cllr Richard Watts, chair of the Local Government Association’s Resources Board, said that with councils facing a predicted national funding gap of £8 billion by 2025, the Government must commit to moving forward with vital reforms, which include addressing business rates avoidance and the impact of empty premise relief.

But Phil Pinder, who chairs Shambles Area Traders’ Association and York Retail Forum, said the system could be even fairer to businesses and that rates needed to be axed.

His thoughts were echoed by Andrew Digwood, spokesman for the York Chamber of Commerce, who said that it would be hard to see any scenario in which raising business rates would be beneficial, adding: “The chamber would like to see a total rethink of the business rate model, which in effect taxes businesses before they make a profit.”

Carolyn Frank, federation of small businesses spokeswoman for North Yorkshire, said: “Locally, our high streets like York and Selby are doing better than other northern cities, in terms of occupancy. For our high streets to continue to be occupied, policy makers, landlords and businesses need to find ways to work together to help businesses thrive.”

Cllr Ayre added: “Due to opportunities through rates relief, 30 per cent of York businesses have a zero bill, and a further 30 per cent have an annual bill of less than £5,000.

“York Central has been designated an enterprise zone, which means we would keep all business rates generated from York Central commercial space. This is a key element in funding the development.”