This UK council is cracking down on unpaid business rates: here’s what to do if you’re behind

Dozens of Welsh businesses are facing court for missing business rates payments, after Pembrokeshire County Council named and shamed 97 defendants over unpaid rates and costs at Haverfordwest Magistrates’ Court.

Pembrokeshire isn’t alone, though. With £2.6bn being owed in business rates across England at the end of March 2026, there’s every chance other councils across the UK will soon begin campaigns to claw back funds.

For founders struggling to foot the bill, a missed instalment can escalate quickly into court costs, and at the extreme end, insolvency proceedings – but it doesn’t need to get to this point. We cover what happens if you don’t pay, and what you can do if you’re falling behind.

Pembrokeshire County Council throws book at businesses over missed payments

The hearing is part of a wider push to recover unpaid bills through the courts. In total, the council is seeking court orders in 438 cases: 97 businesses over non-domestic rates and costs, plus a separate application covering 341 defendants over council tax. 

This isn’t the first time the council has cracked down on missing payments. Thirty-two businesses were listed in cases heard on 1 September 2025, and a far larger list was brought in February 2025, when the council sought liability orders against 686 defendants. 

The problem stretches well beyond West Wales, though. In England, councils collected just 96.7% of business rates due in 2025-26, down 0.6 percentage points on the year before, resulting in a total of £1.1bn unpaid bills. 

Councils elsewhere follow the same route as Pembrokeshire when it comes to recovering the money. Swindon says an unpaid liability order can lead to enforcement agents and, if they can’t collect, bankruptcy, liquidation or committal proceedings, while Tunbridge Wells says it can wind up companies that don’t pay.

Together, these councils are sending a clear message to businesses behind on their rates: ignoring the problem rarely makes it go away.

What happens if you don’t pay business rates?

While one missed payment might feel minor, the process can escalate fast.

Miss an instalment and most councils send a reminder giving you seven days to catch up. Fall behind again and a final notice can demand the whole year’s bill. Next comes a court summons with costs added, then a liability order and, potentially, enforcement agents knocking on your door. 

Paying on time isn’t easy for plenty of firms. Hospitality in particular has been grappling with rising costs, paired with the 40% retail, hospitality and leisure relief ending on 31 March, and a revaluation in April, which pushed many venues’ bills up sharply.

For some businesses, targeted help does exist. Pubs and live music venues in England get an extra 15% off their 2026-27 bills, while the Welsh Government is offering the same 15% to around 4,400 pubs, restaurants, cafes and bars in Wales.  Some qualifying retail, hospitality and leisure properties in England now pay lower multipliers too, and transitional relief is cushioning the biggest revaluation increases.

Few business owners across the retail and hospitality sectors seem satisfied with the support offered so far, and many want more radical reform. Some critics of the current system point out that the UK government collects more in property taxes as a percentage of GDP than Canada, France, the United States, Japan and Germany, claiming that the business rates as currently implemented are “stuck in the past“.

If you’re falling behind, there are practical steps you can take before it reaches court.