There is no such reserve power that I am aware of, although my hon. Friend did mention local authorities and relief, so I will try to explain a little more about what local authorities can and cannot do. Having said that, the detail of what they can and cannot do is a complex area to get into during an Adjournment debate. I am sure that he will take up the opportunity to meet Ministers to discuss the matter further.
Local authorities have no discretion to exempt or vary the rates liability of empty property ratepayers. Although there are reliefs for small businesses and other occupants, such as charities, they apply only where there is a business in actual occupation of a property. Local authorities have discretion to award hardship relief, but there are provisos within that, too. Those provisos are where it gets a little more technical and complicated, so my hon. Friend would probably benefit from having a more detailed conversation with Ministers about them after this debate.
We believe that overall the reforms represent a good balance between providing incentives to owners to re-let or to redevelop property—I think that my hon. Friend is in favour of that himself, although how we do it is perhaps where the disagreement arises—and for providing rate relief for limited periods while they manage vacancies.
In summing up this debate, I say to my hon. Friend that Kate Barker and Sir Michael Lyons saw that empty property rates should be reformed, and the Government agreed. It cannot be common sense to continue to pay owners to leave their properties empty, to be subsidised by taxes paid by others, when UK rents are among the highest in the world and a hindrance to UK competitiveness. It also cannot be beneficial to seek more land on which to build commercial property when existing land could be put to that use or to alternative uses.
At the same time, however, my hon. Friend makes a very good point, which he describes as theory and practice needing to come together to work. I am very keen, and I know that my Department will also be very keen, to learn from his experience, to help to ensure that theory and practice come together and work effectively.
Rating (Empty Properties) Act 2007
Proceeding contribution from
Parmjit Dhanda
(Labour)
in the House of Commons on Tuesday, 8 July 2008.
It occurred during Adjournment debate on Rating (Empty Properties) Act 2007.
Type
Proceeding contribution
Reference
478 c398-9WH 
Session
2007-08
Chamber / Committee
Westminster Hall
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