Swanage Town Council overcharged on beach hut business rates

Swanage Town Council has been paying incorrect business rates on the huts at The Spa, Shore Road, since October 2018.

The bills being paid were based on out-of-date information regarding the number of beach huts, with some no longer there due to them being demolished.

Swanage Town Council pays business rates on a number of properties, including beach huts, car parks and public buildings.

The issue of out-of-date information was raised in January 2023 ,following a review of the town council’s liability for business rates.

This matter was taken to the Valuation Office Agency (VOA) through the formal check and challenge process, and the VOA recognised that past bills were “based on a factual error”.

Swanage Town Council has now been informed by Dorset Council that it will receive a refund of all monies which have been overcharged since October 2018.

This is currently estimated to be £27,000, according to the town council.

The Check and Challenge process has also been commenced in respect of the valuation of a number of other council properties.

Philip Eades, a Swanage resident, said 21 beach huts had been demolished at The Spa in October 2018.

He spoke at a Swanage Town Council meeting in September last year to draw attention to the business rates for the beach huts.

Philip reports he then wrote to the town clerk asking whether the VOA had been advised of that 21 beach huts had been demolished.

He said he was told: “Following a reasonable search of council files I can find no evidence that the check, challenge, appeal process was undertaken in respect of the 2017 valuation in respect of beach huts, nor that the council currently holds any response from the VOA.”

Following the news the town council was overcharged, Philip said: “This proves the value of checking every line of every item of council expenditure.

“The council missed this for five years and kept paying business rates on huts that quite simply weren't there.”