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The Government's decision to withdraw rate relief on empty property has been branded ‘ill conceived' by the British Property Foundation. BPF's condemnation comes seven months after publication of the Lyons report, which recommended the move as one of many long-term proposals local government could use to build its reputation and competence (The MJ, 29 March 2007). Ending the business rate relief on empty properties is designed to encourage firms to bring empty shops, offices and factory building back into use, thereby leading to a knock-on effect for greater regeneration and investment in the area. Earlier this year, former local government minister, Phil Woolas, promised to introduce a new allowance for the renovation of empty business premises in deprived communities, starting next year. But the BPF last week claimed there had been ‘no real consultation' on the principle of the reform, and accused the prime minister of failing to live up to plans to have an ‘open government'. Its members warned the abolition of rate relief would ‘damage speculative development, impose a severe burden on businesses, and harm their expansion'. Said BPF chief executive, Liz Peace: ‘We believe it to be an ill-conceived move that will not only be a blow to business, but stifle much-needed regeneration of some of England's poorest communities. ‘The dynamics of the current market are very different from the market conditions at the time these measures were hastily conceived. ‘It is, therefore, vital that proper consultation on the more fundamental aspects and impacts of these proposals is undertaken before proceeding further.' She said the added burden of paying full business rate would see speculative development suffer.

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BUSINESS

Rate relief withdrawal slammed by British Property Foundation

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