Requests for business rates data including business rates credit balances

There have been a number of relevant decision notices issued by the Information Commissioners Office surrounding the publication of business rates credit balances, five of which are listed below.

• London Borough of Tower Hamlets Council - 25 January 2018 – FS50671834
• Wandsworth Council – 6 Feb 2017 – FS50619844
• London Borough of Hammersmith & Fulham – 4 October 2017 – FS50643256
• Westminster City Council  - 19 December 2016 - FS50611895
• Royal Borough of Kensington and Chelsea - 19 December 2016 - FS50611353

In these the Councils argue that disclosure of the information withheld under section 31(1)(a) would be likely to prejudice the prevention of crime. It was explained that releasing the requested information would allow potential fraudsters to use the information to identify business entities which were entitled to claim credits on their accounts. Once such a business had been identified, there would be a number of avenues open to seek to obtain funds fraudulently. Based on these arguments, the Commissioner accepts that the prejudice claimed by the Councils correctly relate to the prevention of crime.

In line with these decisions, the Council no longer publishes or releases information about the parties that are liable for Business Rates or the amounts payable. The information is being withheld under Section 31(1)(a) Freedom of Information Act 2000 (FoIA), which states that:

“Information which is not exempt under Section 30 is exempt information if its disclosure under this Act would, or would be likely to, prejudice (a) the prevention or detection of crime “

Business Rates data - Non credit balance data

We do not publish or disclose business rates data. This is because it is exempt from release under Section 31(1)(a) Freedom of Information Act 2000 (FoIA), which states that:
“Information which is not exempt under Section 30 is exempt information if its disclosure under this Act would, or would be likely to, prejudice (a) the prevention or detection of crime “

Our reasons for relying on this exemption are as follows:

• Businesses are recognised as vulnerable to fraud in a number of ways with potential fraud losses both to a business itself, or to other parties who deal it such as creditors, suppliers, or customers. Examples of frauds where legitimate business information is misused include payment diversion, submission of falsified invoices, or targeting an identified business to build trust and then manipulate the business for fraudulent purposes. Other examples of fraud such as distribution fraud to overseas traders are also possible but rare. 

• The Council’s view is that the information requested could be used to enable fraud. The risk of fraud with this type of data is a known issue that remains a long term risk and therefore, the Council considers that the prejudice being claimed through the use of this exemption is ‘real, actual or of substance’ i.e. it is not trivial and there is a causal link between disclosure and the prejudice claimed.

• The release of this information would make it much easier for a fraudster to pose as a ratepayer and bypass the Council’s security systems, and that changing those systems to countermand the release of such information would entail significant time and expense. Further that it would facilitate a fraudster posing as the Council to obtain confidential information from a ratepayer. There is evidence that rates fraud is a real and current problem. The consequences to the Council of a loss of a significant sum of public money are serious. We therefore give this prejudice very significant weight in the balance.

• Councils use confidential business rates information, with appropriate agreements and safeguards in place, as a form of validation when dealing with businesses locally. In particular, validation against business rates data when processing grants to local businesses is an important aspect of fraud prevention. The Council routinely receives information about business impersonation fraud where an individual fraudulently pretends to represent a business occupying a given premises.  The attempted frauds can take a number of different formats which, if successful, could result in loss to the business or loss to the public purse.

Our decision and reasons for that decision are supported by several ICO decision notices on this matter. Some examples are:

Hertfordshire Council. ICO Reference: IC-179645-J1J9

East Suffolk Council. ICO Reference: IC-171054-H6Z6

City of London Council. ICO Reference: IC-316240-R3N1