16/12/2010 - Business rate hike 'risks recovery'
Private sector recovery will be at risk if the Government continues with its plans to impose an extra £400 million a year on small businesses, the property industry warned.
Junior planning minister Bob Neill has confirmed that owners of empty properties will no longer be given a reprieve from paying business rates. Currently, owners of empty business premises that have a ratable value of less than £18,000 do not have to pay empty rates.
The introduction of levying full business rates on unoccupied warehouses, shops and offices two years ago ignited a wave of property demolitions, which led to the move being dubbed the "bombsite Britain" tax.
Changing the tax rates has had serious repercussions on small businesses needing to save money, who have been forced to make redundancies rather than downsize property, the British Property Federation has claimed.
BPF chief executive Liz Peace said: "If the government is pinning its hopes on a private sector-led economic recovery then this is a damaging and retrograde step."
The tax announcement has come despite criticism from communities secretary Eric Pickles and business secretary Vince Cable while in opposition.
Copyright © Press Association 2010
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