The property industry has urged councils against taxing empty business premises. The British Property Federation said businesses occupying commercial premises were being hit hard by the end of rate relief on empty property. It warned the tax, which came into force this April, could lead to a halt of new commercial developments, and the demolition of empty premises. The BPF, which was backed by the CBI and the British Retail Consortium argued that in the current downturn, no amount of tax could conjure up demand. The group added an economic recovery would be delayed by constraining the supply of property, meaning cheap premises for start-ups would be limited. ‘It is simply a tax on business failure,' said BPF president, Francis Salway, chief executive of Land Securities. And Ian Coull, chief executive of Segro, another specialist in industrial property, said: ‘We are demolishing buildings as empty rates make it uneconomic to look for low-rent tenants for older properties.'