WORCESTER'S £15 million University Arena is embroiled in a tax row - after it emerged not a single PENNY has been coughed up since it opened.

More than two-and-a-half years ago the University of Worcester lit up the city's Hylton Road with this iconic, gold-cladded 2,000-seater sports arena opening up.

By law the university is required to pay taxes on the venue, which is one of the city's biggest and best assets, home to the Worcester Wolves basketball team.

But since April 2013, two years and eight months after opening, nothing has been handed over in business rates despite thousands of people flocking to it every month.

Worcester councillors say the long delay, which will ultimately leave the university with a massive backdated tax bill, is making a mockery of all the city businesses paying thousands to keep trading.

But city council chiefs have laid it squarely at the feet of central Government, saying the delay is down to officials from a national body called the Valuation Office Agency (VOA).

The VOA is tasked with helping assess the size of the bill, sparking questions about how many other cases there are of long tax delays.

Councillor Richard Udall, who represents St John's, said: "This was brought to my attention some time ago and it's concerning and frustrating.

"I'm told it's a wider problem and that it's because the VOA is taking a very long time to value new buildings, I'm led to believe large supermarkets and retail outlets are in the same position.

"But in the meantime vital revenue is being lost - I wonder how many other businesses and corporations there are, who through no fault of their own, are not paying taxes.

"There are many other things that money could have been used for.

"If it was a commercial building we'd be handing them a short-term commercial advantage, so why is this being allowed?"

The city council says its hands have been tied because of the wait for a VOA valuation.

Lesley Meagher, the council's corporate director of resources, said: "We can't raise a bill until it's been valued by a separate Government agency."

The University of Worcester has released a statement saying it "will be in a position to meet the costs" whenever it is asked.

A spokesman said: "The university is expecting to pay business rates on the arena, as we do with all of our properties.

"We are currently waiting to hear what the appropriate sum will be.

"The university continues to be very well-managed financially and as such will be in a position to meet the costs once agreed.

"The arena was built on a site that had been derelict for many years and along with The Hive, city campus and Riverside campus has regenerated this part of the city.

"Payment of business rates on the arena will be another contribution the university is making to the economy of Worcester."

HM Revenue & Customs (HMRC) has refused to go into details about the wait, saying VOA assessments are confidential.

But it did reveal that a bill was likely soon, saying an assessment on the site's valuation was finally done last month.

A HMRC spokesman said: "We have checked our records and as of last month, that building has now been assessed."

* See today's Worcester News for our comment on this.