Trade slams moves on empty property

The Government is pushing ahead with plans to remove tax relief from empty buildings, despite widespread opposition to the idea.

Conservative local government spokesman Michael Gove slammed the bill, declaring it "a straight forward revenue-raising exercise".

Gove criticised the way the bill was drawn up, as there seemed to be little evidence that properties were being left vacant intentionally.

Other MPs have expressed concern that the plans will only benefit richer areas and areas with a high demand for commercial property.

Punch Taverns property and strategy director Nick Griffiths said: "It's very disappointing. If we have empty pubs, that's a problem for us - it's as simple as that.

"A closed pub is of no value to us, so being penalised for it is going to be a problem.

"It may encourage construction vandalism, with licensees tempted to strip properties to reduce rates."

David Morgan, of DMP Cookseys, said: "This is a misguided attempt to offset the council-tax bill and disguise shortfalls. It's a smoke-and- mirrors style of government, which I don't like."

Konrad Szymanski, of Humberstones, said: "The Chancellor's announcement to remove tax relief on empty properties will inflict added pressure on licensees and developers who may look for longer less flexible leases, increased levels of rent, or inflated purchase prices to compensate.

"It will not achieve the Government's aim of increasing the availability of commercial property."

There are also worries that the changes will discourage new builds, investments and damage pension funds that own property.