Partner Article

BUDGET 2012: Lack of address on rates disappointing

The 2012 Budget unveiled some positives such as the £130 million in improvements in the Northern Hub rail scheme to upgrade lines in the north of England, and the confirmation of ultra-fast broadband for 10 of the UK’s major cities.

We welcome the “crackdown” on tax avoidance that the Chancellor says will save £1bn over the next five years, as well as the freeze for road hauliers on vehicle excise duty which could lead to positive growth for the logistics and warehousing elements of the commercial property sector.

However, as the burden of empty property rates and business rates remain to be some of the largest obstacles in the general commercial property market, it’s disappointing that the Chancellor has not provided any respite on these crucial areas.

Instead, business rates will increase as planned by 5.6% in April this year and there seems to be no movement on the cap for relief on empty property rates, despite sizeable petitions handed to central government.

Many, including the British Chambers of Commerce (BCC) and British Property Federation (BPF), want the Government to enable small business growth by giving tax relief on empty property rates.

Surely it’s time that the Government help the business sector and at the very least, reintroduce the concession of relief from empty rates for low value properties (up to a rateable value of £18,000) that was withdrawn in 2011.

The continued imposition of 100% rates liability on long-term unoccupied commercial properties does nothing to instill confidence in a development market that is only just starting to reawaken after several years on hold.

Looking ahead, to help the market grow and enable regeneration to take place, we need to be able to encourage new, appropriate development without the deterrent of empty property rates.

At present, not enough is being done to free business from the burden of rates. Perhaps Osborne’s announcement that a review conducted by Michael Heseltine will take place on how Government can work better with private sector on growing the economy can include both these areas?

This was posted in Bdaily's Members' News section by Sanderson Weatherall .