TAX relief for empty business units in the area has totalled more than £17 million since 2015.

The Shared Data Unit has investigated the hidden cost to taxpayers when business units become empty.

No rates have to be paid on empty business units for three months, such as when they close down or move.

The aim of the tax relief is to allow for ‘property investment and give landlords time to find a new occupant’.

Some local authorities, however, lose out on up to six per cent of their business rates income through this tax relief – and analysis found that totalled more than £1 billion a year across England and Wales.

In Warrington, in 2018-19, tax relief for empty units totalled £4,960,418, total potential income including empty units came to £118,737,896, the percentage of rates income lost to empty units was 4.18 per cent and business rates income generated in the area was £99,822,206.

In 2017-18, tax relief for empty units totalled £4,060,596, total potential income came to £110,384,748, percentage of rates income lost to empty units was 3.58 per cent and business rates income generated in the area was £91,808,933.

In 2016-17, tax relief for empty units totalled £4,163,330, total potential income was £120,580,758, percentage of rates income lost to empty units came to 3.45 per cent and business rates income generated in the area was £108,308,426.

In 2015-16, tax relief for empty units totalled £3,966,746, total potential income was £119,583,502, percentage of rates income lost to empty units came to 3.32 per cent and business rates income generated in the area was £107,573,236.

But the Labour-run council says it is not worried about the amount of money it is losing due to empty units.

A spokesman said: “These figures are included in our NNDR1 (national non-domestic rates) estimate which is submitted to the Ministry of Housing, Communities and Local Government.

“The estimate is included in the calculation of overall tariff/top-up for the Warrington, St Helens and Halton NNDR pool and, therefore, has minimal impact.”

The council currently retains around 27 per cent of business rates under the 50 per cent retention scheme, which amounts to around £30.8 million a year.

But it continues to press the Government to allow it to retain 100 per cent in the future, although the authority is waiting for the latest consultation and review of local government funding to take place.

Warrington South Tory MP Andy Carter has issued a statement on the matter.

He said: “If local councils are business-friendly, possibly by cutting business rates to encourage investment into a town, which creates jobs, they should be rewarded by being allowed to keep more of the money they generate which they can use to support local services.

“Reducing the number of existing empty properties through incentive schemes seems like a very good idea to me.

“That said, I think we need a fundamental review of business rates. The system is complicated and doesn’t really take account of the changes we see on the high street or in online sales.”

Mr Carter also says he knows councils ‘don’t have the flexibility’ to cut rates at the moment but that he thinks they should have this and would advocate it being introduced in the review.

Council leader Cllr Russ Bowden is among senior figures at the Town Hall calling on the Government to allow the authority to keep more business rates.

But he fears, if the Government does allow councils to retain more, that it will come with ‘extra asks’ and requests to ‘deliver’ more.

“The Government has obviously talked about raising it from 50 per cent retention but the thing to be clear on is that is 50 per cent retention across the country, so it does not mean every authority keeps 50 per cent,” he said.

“Clearly, what we want if we are going to move to a higher rates retention is that we actually get to keep more of it.

“This is money generated through the strength of Warrington’s economy by businesses coming here and being successful – and Warrington people aren’t getting the benefits.”