BPF puts pressure on government over empty rates tax

Friday, 3 April 2009 3:54 PM

The British Property Federation (BPF) has this week launched a new website, emptyrates.com , to offer a public voice on what they call "property tax chaos".

The trade body have launched the site to put pressure on the government over the controversial empty rates tax, which last April removed the relief from business rates for empty commercial space.

Prior to April 1st last year, empty offices and shops were liable for half their rates bills, while industrial units were exempt. However, they have since been taxed the full amount.

Last November the pre-budget report offered a one-year holiday for properties with a rateable value below £15,000. The government later said this change would hand back just 20 per cent of what they would have collected.

Liz Peace, chief executive of the BPF, said: "While property is a fundamental driver in our economy, we're not asking for any bailouts, we just want fairness and taxing empty space is simply not fair.

"Any tax take which increases as income goes down is fundamentally wrong.

"Making firms face the double hit of recession and then a tax on that recession will simply make things much worse, and that's what we're seeing. Demolitions will continue, new investment won't happen and the misery of thousands of hard working individuals will be heightened."

The BPF now wants the relief put back to how it was a year ago when Gordon Brown scrapped it. The website, which is supported by ASDA, Tesco, EDF and AXA and the CBI, will catalogue the effects of the tax and allow people to tell their own stories.

Jonathan Refoy, head of property communications at ASDA, said: "ASDA believe, as others, that empty rates are an unfair tax and ill timed. We are doing everything we can to help people through the recession by providing great value products, creating employment and investment in communities.

"Empty rates, however, are making this much more difficult. Instead of investing in regeneration and jobs, we have to pay this unfair tax on vacant properties that we cannot let or redevelop in the current market. This tax is an anti-regeneration measure."

Both Bob Neill MP, shadow Conservative minister for local government, and Vince Cable MP, Liberal Democrat treasury spokesperson, have supported the BPF's campaign.

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