Government urged to rethink commercial property tax

Property consultancy Carter Jonas has called for the Government to act quickly and abolish business rates for empty commercial properties. This follows an indication by the Secretary of State for Communities and Local Government at the Labour Party Conference that the Government was to reconsider the issue.

In addition, Hazel Blears has said of the empty rates programme that the Government would now "need to look at the cost benefit" of the scheme and keep it "under review".

Carter Jonas believes that the policy is detrimental to commercial landlords and developers, who are already struggling due to the fall in property prices. Even in the brightest business conditions, thinks the consultancy, the policy is ill thought-out and a deterrent to investment.

There have been reports of some commercial landlords demolishing empty premises rather than pay the levy.

Duncan Quig, Head of Commercial Agency in Cambridge & Peterborough for Carter Jonas, stressed the need for a speedy and radical review: "Obviously the Secretary of State's central focus is the impact the charges will have on planned regeneration schemes but the mainstream commercial property sector is burdened by this taxation now," he said.

Quig added: "The Government needs to look at this urgently. To come to any other conclusion than the repeal of this tax would be mind-boggling."