黑洞社区

A government tax on empty business properties is causing mass demolition of commercial premises, according to the government鈥檚 own urban regeneration agencies.

John Nicholls, chair of a leaders group of the government鈥檚 19 urban regeneration companies, said the Empty Rates tax was having a 鈥渧ery significant鈥� effect on regeneration areas.

Nicholls spoke to 黑洞社区 after it emerged that the URCs leaders had written to the Treasury last year urging them not to introduce the tax, and predicting it would lead to unnecessary demolitions and damage development viability.

Nicholls said: 鈥淚t seems to be having exactly the effect we predicted. The pre-emptive demolition isn鈥檛 actually the main problem. Most worrying is the fact it deters development and suppresses speculative building 鈥� which is just what regeneration areas need.鈥�

Most worrying is the fact it deters development and suppresses speculative building 鈥� which is just what regeneration areas need

John Nicholls

Nicholls said the development industry needed to get together urgently to fight the tax and try to get the government to repeal the measure. 鈥淎t the moment the evidence of the problems is largely anecdotal. The Treasury won鈥檛 back down from this without proper evidence, so we need to get this together fairly quickly.

Business rate relief on empty commercial property was removed on 1 April 2008. Before this, empty retail and office space received full relief for three months and 50% thereafter, while industrial space (warehouses and factories) received full relief permanently.

Since 1 April 2008, retail and office space pay full rates after three months鈥� grace. Industrial space is now charged full rates after six months鈥� grace. The government said it removed the empty rates relief to prevent landlords from leaving properties empty on purpose.

The British Property Federation has been fighting the tax, with which it says the Treasury expects to raise 拢1.3 billion.