Scrapping of empty property rate relief ‘hitting’ businesses

13 August 2008

The government’s decision to drop rate relief on empty commercial properties is hampering the economy in general and small businesses in particular, the British Property Foundation (BPF) has claimed.

The move was introduced in April in an effort to boost the number of business premises on the market.

However, the BPF argued that dropping the rate relief has had the effect of reducing the amount of property available.

Peter Cosmetatos, the BPF’s finance director, said: “The tax is causing older buildings to be demolished early and new projects to be shelved. The result will be less available property and higher rents when demand begins to recover.

“It is virtually impossible to quantify the cost of the direct and indirect consequences of imposing rates on empty property. What is clear is that they are wide ranging and far reaching and will store up problems for the economy for years to come.”