Rating (Empty Properties) Bill

Our assessment and modelling of the macro-impact of the measure, especially in the context of other reforms that we are putting in place, suggest that rents are likely to come down. If my hon. Friend is not aware of it, she, her local authority and property owners in her constituency might find relevant a consultation launched recently on the future of tax incentives for the development of brownfield land. The closing date for that consultation is 14 June, and if she or her constituents wish to make points in that context, I and my hon. Friend the Minister for Local Government would be pleased to receive them. Clearly, as I said to the hon. Member for Ludlow (Mr. Dunne), it is high time to consider again the rating of empty property. Since the 1980s, that has been limited to a 50 per cent. rate on empty office and retail space and a complete relief on empty industrial space—reliefs that continue without time limit. That level of rates was set, in the words of the 1983 White Paper on rates, in ““a period of recession””. That same White Paper clearly argued that the rating of empty property,"““encourages owners to bring empty properties back into full use””." It is right that we consider those reliefs in the current situation, which, after 10 years of strong, steady, stable economic growth, is clearly not comparable to that in the 1980s, which saw such a deep recession and sluggish economic activity. That is not to say that the Government need not support regeneration and support communities in areas where demand for commercial property is lower—that is essential. That is a commitment of the Government, and a personal and political commitment shared by me and my hon. Friend the Minister for Local Government from a constituency perspective. In a moment, I shall refer to several parallel policy measures and reforms that we are putting in place alongside the empty property relief reform in the Bill. When London is the world’s most expensive place to which to locate, and its rents are the highest in the UK, can it be right that we offer a tax relief on empty property in Westminster, for instance, costing the public purse more than £70 million a year, or in the City, costing £60 million a year? Instead, we have fully accepted the arguments made to us by the Federation of Small Businesses in its review of business rates. It said that we should"““remove the tax exemption and relief for empty properties—the tax would be paid by the owners of empty premises and might persuade them to ensure that properties are used and not left empty, often as an eyesore in the community.””"