Rethink hint over tax on empty properties (From The Northern Echo)

Rethink hint over tax on empty properties

10:18am Tuesday 28th October 2008 in Search By Deborah Johnson

MINISTER for the North-East Nick Brown has hinted the Government may be reconsidering its stance on empty property rates (EPR) after suggesting a reprieve for the region may be granted.

The EPR tax was introduced on April 1, and forces businesses to pay rates on empty buildings, even if they have only recently been completed.

It is estimated the tax will cost North-East companies £30m this year, and numerous cases of companies destroying their buildings to gain exemption from EPR have already been reported. EPR has also been widely condemned for stifling commercial development and thwarting company growth plans.

However, speaking to The Northern Echo, Mr Brown acknowledged that the rates were having “destructive”

consequences, and suggested exemption for certain industrial areas – including the North-East – may be granted.

He also revealed a meeting between North-East MPS Chris Mullin and John Cummings with the Treasury to discuss EPR last week “had got somewhere”.

“Although it (EPR) may be appropriate in London and the South- East, these are completely different circumstances we have in the North-East, and I do think the Government could look at granting relief in the old industrial areas like we have here,” he said.

“We are in a position where people are pulling buildings down, which is an unintentional but destructive consequence of this, and the way to avert that is to grant relief.

It is highly unlikely we will grant wholesale relief, but something could be done in the old industrial areas.”

His comments were last night welcomed by the North-East Chamber of Commerce, which has been vocal in its condemnation of EPR.

Ross Smith, head of policy and research, said the Government Chief Whip’s comments appeared to be a positive development.

“The Government has been given a very strong message, particularly from the North-East, about the damaging impact this measure is having, so it is pleasing to see an indication that they are now considering what changes might be brought in,” he said.

“We would still favour a reversal of this damaging tax completely, but if a third way could we found which enabled the Government to address the limited problems it was trying to deal with in the first place, and help alleviate the consequence we have seen of punishing businesses in the North-East, we would also welcome that.”