Budget: No reversal on business rates decision

Alistair Darling has failed to react to demands to increase the tax relief rate period on empty business properties.

In the Budget, the Chancellor confirmed the removal of relief on business rates for empty properties would remain.

However, measures put forward in his pre-budget report - that empty property with a rateable value of £15,000 or less will be excused from paying rates no rates until March 31 next year - will be implemented.

Before April 1 last year, empty pubs, offices and shops were only liable to pay half their rates bills. They now have to pay the full amount when a property is empty for more than three months.

The decision puts pressure on pub owners to sell empty properties with a rateable value over £15,000, quickly or business rates will be payable.

The British Property Federation (BPF) and the Royal Institute of Chartered Surveyors have both warned that the tax is causing small businesses to suffer and that properties, including pubs, are being unnecessarily demolished.

Liz Peace, BPF chief executive, said: "Gordon Brown has not only ignored the industry, the public, his own chief whip and regeneration advisers, but basic economic sense.

"The government has decided to plough on with a tax on hardship forcing thousands out of business, causing millions of square feet of buildings demolished and causing even more jobs to be lost.

"While many have taken drastic steps to demolish their buildings, occupiers with a lease don't have that option and will be forced to cut jobs as a result.

"It is absolutely bonkers to be hitting those firms trying to cut costs with more taxation."