Empty business rates campaign hots up

The British Property Federation (BPF) has stepped up its campaign against charging full rates on empty premises, which came into force on 1 April.

The BPF said the charging of full rates encourages early demolition of buildings, such as pubs, rather than re-letting them.

Under the revised system, full business rates apply to commercial property left vacant for more than three months.

The changes were designed to revitialise run-down communities and ensure the effective and efficient use of buildings.

But the BPF said this simply is not the case.

The trade body for UK property developers, investors and advisers plans to build up a dossier to prove how disastrous the tax has been.

"I am concerned that, at a time when the property market is so fragile, these tax rises now threaten to discourage development and regeneration," said shadow communities secretary Eric Pickles.

The legislation does allow for rate relief to be introduced at up to 50%, giving Government flexibility to react to changing economic times.

Peter Cosmetatos, BPF director for finance and investment, said: "Nobody could have predicted the credit crunch when the rate relief cut was first set out in the 2007 Budget, but since the cut actually took effect in April we have been in a dire situation that could be made much worse should the industry continue to be unfairly penalised in this way.

"There is no value in keeping a property empty - particularly in a downturn.

"We have seen numerous examples of buildings being demolished a few years earlier than they may have otherwise been, and we have heard of many developments and regeneration projects being shelved because of the risk of higher costs during vacant periods.

"This harms the secondary market and restricts supply, both now and for years to come, making things even worse for small business occupiers as well as bigger property companies."

The BPF wants anyone with examples of how the changes have affected them to email vasb@rzcglengrf.pbz​.