Partnership calls for relief on empty property levies (From The Northern Echo)

Partnership calls for relief on empty property levies

8:25am Friday 10th July 2009

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A KEY partnership which looks to close the North/South economic divide has called for the reinstatement of Empty Property Rate (EPR) relief as a means to narrow the gulf.

The Northern Way – a partnership between the three Northern regional development agencies – has called for a relaxation of EPR levies, which require businesses to pay rates on all empty buildings, even those which have recently been completed.

The current level for EPR levies was set by then-Chancellor Gordon Brown in the 2007 Budget, as a means to stimulate swift lettings.

However, it is said to yield the Treasury up to £1bn a year, with rates set to cost North-East business more than £40m this year.

In its Private Investment Commission: Preparing the Ground report, the group – a partnership between One North East, Yorkshire Forward, and the Northwest Regional Development Agency – it concludes that EPR relief to pre-April 2008 levels would help increase levels of regeneration work needed to take the North forward.

The Northern Way’s findings come in support of the Building on Success campaign, run by The Northern Echo with the North-East Chamber of Commerce (NECC), which calls for full EPR relief to be reinstated, to help business and commercial development recover during some of the worst economic times in the modern day.

Its EPR recommendations were welcomed last night by the NECC, which said relief would have a “seriously positive impact” on inward investment in the region.

The report said: “EPR relief should be reinstated, especially in this economic climate.

The higher rate burden on empty properties will prevent the degree of speculative development needed to kickstart urban regeneration in many of the major cities across the North.”

Although some form of climbdown was seen in last year’s Pre-Budget Report, with Chancellor Alistair Darling offering full relief to properties with a rateable value of under £15,000 for 12 months, the Government’s claim this would apply to 70 per cent of all premises was challenged by British Property Federation research, which showed statistics included ATMs, parking spaces and public toilets.

Ross Smith, head of policy and research at NECC, urged the Government to consider the Northern Way’s findings.

“This has been a very thorough study carried out by a group with serious expertise which makes a host of important and well-thought through recommendations,”

he said. The call for EPR relief to be reinstated is one which could be implemented quickly and would have a seriously positive impact on investment in the North-East.

“I hope Alistair Darling reads this report and heeds this message. Every day he fails to take this step is one more day when investment in this region is unnecessarily

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