Rate relief for majority of empty commercial properties

Today's much-anticipated Pre-Budget Report included a statement that, in light of the situation with falling property prices, smaller commercial properties will be given rate relief when empty.

The Chancellor said, "For 2009/10, empty commercial properties with a rateable value below £15,000, will be exempt from business rates. This exemption covers an estimated 70 per cent of all empty properties."

On Friday last week, the Birmingham Chamber of Commerce called upon the Chancellor to act "quickly and decisively" in his Pre-Budget Report to help businesses during the recession - specifically the commercial property sector.

Katie Teasdale, the BCI's senior policy adviser, said that one of the issues that the Chancellor needed to address straightaway was the issue of rate relief for empty commercial properties: "We will need to see a number of crucial measures implemented immediately, including a reintroduction of empty property tax relief," she said.

"The decision to remove tax relief has forced many firms to demolish properties as they struggle to keep up with rate payments. This is clearly unacceptable, not least because of the very profound impact it is having on regeneration schemes and businesses already enduring hardship."