LSH responds to scrapping of empty rates relief
Following this week’s news that the government is to cut the business rates exemption for empty small business properties, Richard Wackett, head of rating at Lambert Smith Hampton, says “this is a big blow for developers and investors of all sizes”.
Mr. Wackett points out that the full empty rate charges had not encouraged regeneration and development, as had been intended. He says the relief was helpful to investors where demand was very low and where properties could be split into smaller occupational units, “but now the options for those looking to speculate on a return to growth in property values are much more limited.”
Lambert Smith Hampton also notes that the government’s use of the retail prices index (RPI) rather than consumer prices index (CPI) means that the new Uniform Business Rate multiplier is set to increase by almost 4.6%, from 41.4p to 43.3p for most properties. Mr. Wackett says this means that in most cases, rates will rise by more than the true rate of inflation, at a time when the business environment is still sluggish.
Well said Richard!
The Government justifies the lowering of the EPR threshold because of its understandable need to raise revenue. I think it is the view of the majority of businesses that this tax is significantly reducing the overall tax take as it stifles regeneration and reduces the liquidity of property companies.
If they will not reintroduce EPR to the pre April 2008 level then the government should adopt the recommendations of the LSH/RICS report and extend the period before empty rates are charged to twelve months.
I and my MP have written to Bob Neill about this but so far, perhaps understandably, to no avail.
David Flood
Rateable Value Ltd
01244 521440