Empty business rate tax must stay, says government
The government has told Business Voice West Midlands (BVWM) it will keep the issue of empty property relief under review, but for the moment cannot afford to act. The pledge came in a letter to the lobbying group from the Department for Communities and Local Government.
The empty business rates tax involves scrapping rates relief for unoccupied properties with a rateable value under £18,000. From April, the threshold for exemption will drop to a rateable value of £2,600. It is estimated that the new law will pull in an extra £400m a year.
The development prompted BVWM to write to local government secretary Eric Pickles and ask him to consider the long-term damage being done to cities.
The response from Pickles reads: “The government fully appreciates the problems caused by the reform of empty property rates.
“However its ability to take action on this matter will need to be balanced against the overriding need to reduce public expenditure and support the economy generally by reducing the deficit.”
Acknowledging there would be “disappointment” at this stance, it added: “The government are keeping the current empty property relief scheme under review.”
The letter also highlighted help to small businesses.
“The government has already made small business rate relief more generous by providing eligible small businesses who occupy property with a rateable value of less than £6,000 a 12-month rate holiday.
“More generally the government are considering the possibility of giving local authorities wide-ranging discretionary powers to grant business rate discounts, so that they can better respond to local circumstances.”
BVWM executive director James Watkins said: “It is at least encouraging that the government is still keeping this tax under review. Nevertheless, this is an iniquitous burden.”
