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Business
May 31, 2026
Analyzed by Glm 4.7 Flash

The Schreiber Dilemma: Tax Avoidance vs. Homelessness Provision

AI Summary
A Guardian investigation exposes the Schreiber family's alleged dual exploitation of UK property markets: one entity accused of saving £18m through a 'faith room' tax loophole, and another profiting £43m from temporary accommodation for the homeless, raising serious ethical questions about corporate governance.

The Schreiber family, presiding over a nationwide commercial portfolio via the Midos Group, is at the center of a growing controversy involving two distinct business models: aggressive tax avoidance and the profiteering from the UK's housing crisis.

The Dual Nature of the Schreiber Business Empire

The investigation reveals a complex web of family-owned entities that appear to operate on opposite ends of the social spectrum. On one side, the Midos Group is accused of exploiting a controversial tax scheme to avoid business rates on empty commercial properties. On the other, a similarly named but ostensibly separate entity, Midos Management Co, is profiting from the UK's chronic shortage of social housing by arranging temporary accommodation for homeless residents.

  • Midos Group: Accused of using the 'faith room' scheme to avoid rates on empty units.
  • Midos Management Co: Collecting fees for arranging temporary accommodation for councils.
  • Key Figures: David Schreiber (Midos Group) and Elizabeth Endzweig (Midos Management Co).

Financial Impact of the 'Faith Room' Tax Loophole

The core of the tax avoidance allegations centers on a provision that exempts property owners from paying business rates if the space is made available for religious worship. The 'faith room' scheme, marketed by Verity, allegedly involves minimal activity—such as placing a notice and a staff member reading scripture—to create the appearance of worship.

  • Total Savings: Landlords have saved at least £18m through this scheme.
  • Specific Case: Dover District Council is suing for £1.7m of unpaid tax.
  • Properties Involved: Discovery Park in Kent and a disused pub in Clapham, London.

Profiting from the Homelessness Crisis

While the family allegedly avoids taxes on empty buildings, they are simultaneously capitalizing on the housing emergency. Midos Management Co acts as an intermediary, matching councils with private landlords to house homeless residents. Despite claims of separation, evidence suggests significant overlap between the two entities.

  • Revenue Collected: At least £43m collected on behalf of landlords since 2019.
  • Client Base: Lambeth council and at least four other councils.
  • Directorship Overlap: Elizabeth Endzweig, daughter of David Schreiber, is a co-director of multiple companies sharing the same address as Midos Group.

The Future of UK Property Tax Compliance

The revelations highlight a growing tension between private profit and public service obligations. With MPs and councils increasingly scrutinizing these arrangements, the 'faith room' exemption is likely to face tighter regulatory oversight. The case sets a precedent for how closely connected family businesses can be without violating anti-avoidance rules, potentially leading to stricter audits of corporate structures in the property sector.