Decision to Tax Empty Buildings Described as Outrageous

The Government’s decision to scrap rate relief on empty business premises has been described as economically damaging by the Country Land and Business Association.



The decision, announced by Communities and Local Government Minister, Bob Neill, means rate relief on empty business properties with a rateable value of more than £2,600 will disappear from next April and the CLA says it will deliver a serious blow to the rural economy.



CLA South West Director John Mortimer says there were many factors which might lead to business premises falling empty – but he said that the Government’s decision will punish the people who provide opportunities for small to medium-sized businesses to operate in the rural sector.



“These enterprises – often located in converted farm buildings - make a crucial contribution to the UK economy. But it is a tough market and this decision will act as a disincentive to investment for those providing and improving rural business premises to let. It is very frustrating that the Government extols the virtue of the private sector , but then seeks to limit its ambition through clumsy taxation”



Mr Mortimer warned that the move could have the reverse effect and, instead of raising revenue for the Government would be more likely to encourage owners to demolish buildings or render them unusable in order to avoid the tax.