ONE year ago, the new levels of rates charged on empty business properties appeared a big issue in the run-up to Alistair Darling’s Pre-Budget Report.

Minister for the North- East Nick Brown went on record to point out the need for a re-think in this region as businesses struggled to cope with a tax drawn up in much more benign economic times.

Some were taking the drastic step of demolishing buildings to avoid a tax bill they simply couldn’t afford.

Meanwhile, developers were making calculations based on a difficult market for attracting tenants quickly and realised new buildings now represented new liabilities.

A policy designed to address a problem which existed in the South East – landlords deliberately leaving buildings empty – was having serious consequences here. That’s why the NECC and The Northern Echo launched our Building on Success campaign for a full reinstatement of empty property rate relief.

The Chancellor responded with a concession that helps a number of small firms – but has since been shown to cover less than 20 per cent of businesses.

Now even that is due to run out soon, as the 12- month time limit placed by Mr Darling reaches an end.

In the year that has followed, the noise on the subject may have reduced from some quarters, but the issue has not gone away.

Businesses are still being forced to take drastic steps to avoid bills at a time when cashflow is a serious challenge. The commercial property market remains stymied.

And by his own admission, Mr Darling is not achieving his aims. The stated intention in cutting the relief last year was to encourage more landlords to let properties to tenants, rather than leaving buildings to stand unused.

But a recent response by the Government to a petition calling for its reinstatement refused to do so on the grounds that it would cost £950m – so it appears this is just raising cash for the Exchequer rather than having the intended consequence.

In the run-up to his next Pre-Budget Report this year, the NECC will be making the case for removing empty property rates just as strongly. The North-East should be Building on Success – not knocking down the foundations of recovery.

■ Andrew Sugden is NECC director of membership and policy.