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Blears signals U turn on Empty Rates Relief
The Government is considering changes to its controversial policy to force the owners of empty commercial property to pay business rates, communities secretary Hazel Blears admitted yesterday.
Speaking in Manchester at a Labour Party conference fringe event, Blears said that the economic downturn had forced the Government to reconsider its empty rates policy.
"Circumstances do change. What we've seen in the last few months has changed the economic landscape out there," Blears said. "When the empty rates programme was brought in there was a lot of empty property deliberately left empty. The purpose of the policy was to have an incentive for people to let their property."
Blears said that the changing economic circumstances meant that the Government would now "need to look at the cost benefit" of the scheme.
She said that the policy was not now "hitting the same buttons" as it was two years ago. "We need to keep that under review and see is it worth making any changes," she said.
Earlier at the same event, Peter Miller, development director at developer Westfield, had told delegates that the empty rates scheme acted as a disincentive for developers.
"What incentive is there for us to continue promoting major urban regeneration schemes if we are going to have to pay a penalty having gone forward with the scheme in good faith, taken a leap of faith and pursued the development in the hope we can fill it?" he said.
"If the economic conditions persist and we have 20% to 30% vacancies, then we have to pay rates, that's a double whammy," he said.
Speaking in Manchester at a Labour Party conference fringe event, Blears said that the economic downturn had forced the Government to reconsider its empty rates policy.
"Circumstances do change. What we've seen in the last few months has changed the economic landscape out there," Blears said. "When the empty rates programme was brought in there was a lot of empty property deliberately left empty. The purpose of the policy was to have an incentive for people to let their property."
Blears said that the changing economic circumstances meant that the Government would now "need to look at the cost benefit" of the scheme.
She said that the policy was not now "hitting the same buttons" as it was two years ago. "We need to keep that under review and see is it worth making any changes," she said.
Earlier at the same event, Peter Miller, development director at developer Westfield, had told delegates that the empty rates scheme acted as a disincentive for developers.
"What incentive is there for us to continue promoting major urban regeneration schemes if we are going to have to pay a penalty having gone forward with the scheme in good faith, taken a leap of faith and pursued the development in the hope we can fill it?" he said.
"If the economic conditions persist and we have 20% to 30% vacancies, then we have to pay rates, that's a double whammy," he said.
Tue, 23rd Sep 2008