City hit hard by empty property rates

Nov 19 2008 by Alex Turner, Liverpool Daily Post

EMPTY property rates have been labelled as a “tax on regeneration” that is hitting Liverpool particularly hard.

Rate relief on empty buildings was withdrawn last April and its effect is being keenly felt across the city region.

The move by HM Treasury has met with widespread opposition in the property industry, and more than 30 MPs signed an Early Day Motion against the tax.

Liverpool Chamber of Commerce is urging the Government to reconsider the move as it argues it is hurting businesses in many sectors and is inhibiting developments.

Jack Stopforth, chief executive of Liverpool Chamber, said: “While we appreciate that the Government made changes to empty property rates in order to bring empty offices, shops and factories back into use and to increase supply we would argue that in Liverpool it is having harsher than intended consequences.

“Consultations with our planning and strategy committee, which is comprised of property developers, architects, engineers and chartered surveyors, and the local inward investment agency Liverpool Vision have corroborated our view that empty property rates are having a negative impact on development.

“In terms of speculative development, the evidence suggests that developers are now unwilling to proceed with projects unless tenants have already been secured.”

Mr Stopforth’s views are reflected by developers and landlords. Chris Wright is the project director of The Forward Partnership, which has nearly completed a £2.4m office scheme at the gateway to the Widnes Waterfront regeneration area.

He hopes Chancellor Alistair Darling will remove empty rates in his pre-Budget report. He said: “It was nonsensical in the best of times, and now looks like an extremely toxic tax on regeneration.”

DEMOLITION FIRM’S RISE IN ENQUIRIES: PAGE 11

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