A Bradford business body has repeated its call for a Government rethink on taxing empty commercial properties as a new report today reveals the district’s bill doubled to nearly £10 million in 2011-12.
The TaxPayers’ Alliance says £1.1 billion was paid across the UK last year in business rates on empty properties, a rise of 19 per cent between 2009-10 and 2011-12. The tax is collected on the Government’s behalf by local authorities.
In Bradford, the level of empty property rates paid soared from £5.15 million in 2010-11 to £9.99 million a year ago .
In Craven, the bill jumped from £751,900 to £825,239, while in Calderdale the amount of cash collected rose from £1.08 million to £2.32 million. Kirklees saw bills risefrom £3.46 million to £4.46 million and in Leeds the figure increased from £14.4 million to £17.7 million.
The TaxPayers’ Alliance said it was the first time the amount collected in empty property rates had been calculated since exemptions for empty commercial and industrial properties were abolished in 2007.
Before then, empty industrial properties were exempt from business rates and empty commercial properties enjoyed extensive reliefs and reductions.
Now, apart from a short exemption period and limited reliefs, full business rates are payable on all empty commercial and industrial properties.
It said with the economic downturn making it increasingly difficult for landlords to find new tenants, the tax had forced some landlords to demolish properties rather than paying the full rates.
Andrew Allinson, Yorkshire spokesman for the TaxPayers’ Alliance, said: “It is extremely unfair that property owners are being hit with enormous business rates on properties which are empty, with no rent coming in that they can use to pay the bill.
“The rest of us lose out as the mere threat of having to pay rates on empty properties is discouraging people from putting money into new developments or refurbishing existing properties, which is undermining the prospects for economic growth. The reason there are so many charity shops on the streets of Bradford is because charities are exempt from the tax, so landlords let them be used for charitable purposes to avoid the charge.”
Mike Cartwright, Bradford Chamber of Commerce policy executive, said it wanted a Government rethink on a tax that was damaging business. He said: “Areas like Bradford are particularly affected by the abolition of rate relief due to the high number of empty properties we have in the district. What we would like to see now is a move to re-establish some form of rate exemption as before.”
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