Darling ignores rate-relief pleas

The Budget has failed to help the property industry by ignoring "simple practical solutions" — that's according to the British Property Federation (BPF), which represents property owners and investors.

The group was outraged that the Chancellor ignored pleas for longer periods of relief from business rates for empty properties, including pubs. However, it welcomed news that an additional tax on new-build businesses — the Community Infrastructure Levy (CIL) — was to be delayed.

Until April 2008, rates legislation dictated that empty pubs, offices and shops were liable to pay only half their rates bill.

But since then they have had to pay the full amount, although vacant properties with a rateable value of £15,000 or less will not have to pay rates until 31 March 2010.

Liz Peace, chief executive of the BPF, accused Gordon Brown of ignoring "basic economic sense".

She continued: "While many have taken drastic steps to demolish their buildings, occupiers with a lease don't have that option.

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

Implementation of CIL, an extra tax to fund local infrastructure projects, has been delayed until October 2010. It was due to take effect in November this year.

The tax could impact on anyone building a new pub, as CIL will be collected from developers working on new-build projects.

Lobby groups were concerned about how to ensure CIL doesn't discourage development, that developers won't be charged twice, and how to ensure that local authorities can waive CIL in certain cases.

The delay was welcomed by Brigid Simmonds, chief executive of Business in Sport & Leisure (BISL), who said: "BISL has been pushing for the Government to postpone CIL, and we're very pleased that they've listened. It's only sensible in this market. It is, after all, a property tax and adding extra costs while the property market is struggling would be absolutely daft."